Not sure if anyone else has this test… but for those who have already done it or have it are the descriptions for psychological traps correct?
Did they expand categorization of these traps since 2007? I just felt like there were better answers maybe then what the guideline answers suggest.
thoughts?
I just did this exam today and got mixed up on that question - I concetrated on behavioural biases instead of psychological traps and got a big fat zero for that question…I mean how that guy fearing regret of missing another market bottom isn;t…well…fear of regret, I’ll never know.
So yeah - maybe make sure you are distinguishing properly between behavioural biases of individuals and psychological traps of analysts.
your psychological traps…
ASCORP
Anchoring
Status Quo
Confirming Evidence
Overconfidence
Recallability
Prudence
Ah ok that’s what I did… and psychological traps are mainly for analysts correct?
Thats how I understand it yes - they fall under “Potential Issues in Forecasting” from the curriculum and well, I guess it’s mainly analysts who do the forecasting right?
Not to be confused with the behaviorial biases, CCHIR-FAMA & LOSERS. I have so many stupid acronyms memorized at this point that I might as well remember ASCORP.
^what are CCHIR-FAMA & Losers?
Conservatism
Confirmation
Hindsight
Illusion of control
Representativeness
Framing
Anchoring
Mental accounting
Availability
&
Loss aversion
Overconfidence
Self-control
Endowment
Regret
Status quo
So, CCHIR = Cognitive Error/Belief perseverance, FAMA=Cognitive Error/Information processing and Losers = emotional bias
Jeez.