1. illusion of control is a preference for the current state of affairs. It's the act of avoiding change due to the risk of loss compared to the status quo reference point. 2. Representativeness involves looking at a small data set and extrapolating information to draw erroneous conclusions. It represents a tendency to rely too heavily, or "anchor," on historical data when making decisions 3. the illusion of control describes how we believe we have no control over events than we actually do. Even when something is a matter of random chance, we often feel like we're unable to influence it in some way. 4. According to Recommended watch: Behavioral Finance & Investment Strategy the key to successful investing is to stay within your circle of competence'. A key part of our circle of competence is to concentrate our investments in areas that exhibit a low degree of predictability and to target investment areas that are highly complex and/or highly uncertain. 5. esearchers have found that traders, especially online traders, believe themselves to possess more control over the outcomes of their investments than they actually do. Illusion of control bias can lead investors to trade less than is prudent. 1. illusion of control is a preference for the current state of affairs. It's the act of avoiding change due to the risk of loss compared to the status quo reference point. 2. Representativeness involves looking at a small data set and extrapolating information to draw erroneous conclusions. It represents a tendency to rely too heavily, or "anchor," on historical data when making decisions 3. the illusion of control describes how we believe we have no control over events than we actually do. Even when something is a matter of random chance, we often feel like we're unable to influence it in some way. 4. According to Recommended watch: Behavioral Finance & Investment Strategy the key to successful investing is to stay within your circle of competence'. A key part of our circle of competence is to concentrate our investments in areas that exhibit a low degree of predictability and to target investment areas that are highly complex and/or highly uncertain. 5. esearchers have found that traders, especially online traders, believe themselves to possess more control over the outcomes of their investments than they actually do. Illusion of control bias can lead investors to trade less than is prudent