This cognitive When cannot error indicates that people with little experience and knowledge in a given field overestimate their skills. This is due to the tendency to simplify thought patterns in order to be able to take action faster. This phenomenon also works the other way around – specialists or experts are more likely to underestimate their competences When cannot and perceive the incompleteness of their knowledge. Competency levels. Overconfident investors overestimate their ability to judge the situation and incorrectly determine the probability of a stock going up or down.
In connection with this theory
It is worth mentioning the so-calle competence levels that illustrate how self-awareness and skills influence the learning process. Unconscious incompetence At this stage, there is no nee to acquire new qualifications, and there is even excessive self-confidence. This is where philippines photo editor we encounter the Dunning-Kruger effect, which explains the unrealistic assessment of one’s competences. Conscious incompetence This is the moment when you start to notice that you lack certain knowledge compare to others. Therefore, you decide to take action to learn new skills. Initially, you may make many mistakes, which may reduce your motivation.
But remember that these are
only temporary difficulties. Conscious competence At this level, you are already able to determine what you can do and what aspects still require improvement and work. You gain knowledge and education, but you also look for opportunities to use it in practice. Unconscious BJ Leads competence Certain activities become natural to you and you perform them automatically – you already have extensive experience in a given field. However, you must remember that you should still develop, train, and at a higher stage of advancement – share your knowledge with others. Examples of the Dunning-Kruger effect Examples of the Dunning-Kruger effect include: The belief that we have greater knowledge and experience than others, and therefore our decisions are right; Improper calibration.