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Illusion of control
In one line: Feeling more in control of chance than you are.
Evidence
Langer (1975): choice, familiarity and involvement make people overestimate their control over chance outcomes. Fenton-O'Creevy and colleagues (2003) found that among 107 City of London traders, a higher illusion-of-control score went with lower manager-rated performance and lower pay.
Langer (1975): choice, familiarity and involvement make people overestimate their control over chance outcomes. Fenton-O'Creevy and colleagues (2003) found that among 107 City of London traders, a higher illusion-of-control score went with lower manager-rated performance and lower pay.
Clicking more, watching more screens or adding indicators can feel like control. It isn't the same as an edge: Expectancy.
Related
Sources & studies
- Langer (1975), Journal of Personality and Social Psychology
- Fenton-O'Creevy et al. (2003), Journal of Occupational and Organizational Psychology
Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.