Many of us have different superstition about our acts. We believe that if we perform a few tasks in some pattern or after performing some other task then we will gain. The illusion of control is the tendency to believe that we can influence something over which we have absolutely no sway.
Government, central banks and the world’s largest authorities believe that they have many tools by which they can control things the way they should be. And they use one tool after another. Few things might get control for that particular period but cannot be guaranteed for the future. We should rather focus on everything and try to control it; we should learn what we can influence and should perform.
Investment – Many participants in the stock market think that they can have tools by which they can catch every market movements and reap profits from them. Yup, they maybe can do it for some time, for some short period but is it possible for them to do it again and again? We cannot control the majority of things which we have to understand and perform the task according to it. The majority of the time, we live in an illusion of control but should understand that we cannot control the majority of things in the world. Many market participants focus on capturing each movement of the market and try to catch all gaining stocks. But should have understood that, it is not possible to do. So that rather than running behind each strategy to operate in the market, we should define a strategy that can be suitable to us and have to do it tested for longer periods. We only can control our own behaviour so we should focus on that part.