Hindsight Bias

Cognitive Control

Thinking 'I knew it all along' after something happens. The tendency, after an event occurs, to believe you predicted it or that it was obvious. This prevents learning from mistakes because you convince yourself you 'knew' what would happen. Example: After a stock crashes, you think 'I knew that was going to happen.' But check your trading journal - did you actually act on that 'knowledge'? Usually, the answer is no.