◈ GLOSSARY · MONEY MINDSET
Confirmation Bias.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
The habit of seeking out information that confirms what you already believe and quietly discounting anything that contradicts it. In investing, it shows up as only reading bullish takes on stocks you own and dismissing the bear case as 'noise.' The honest caveat: the only real defense is forcing yourself to write down the strongest argument against your position — and taking it seriously.
◈ IN PRACTICE
Example
You're long a stock. You spend an hour a day on a forum full of other holders cheering it on, and you skim past the short-seller report because 'they're just talking their book.' Six months later the short report turns out to be right. The information was available — your filter wasn't.
◈ RECOMMENDED READING
