APPROACHES TO DATA ACQUISITION AND ON-LINE INFORMATION

Thanks to the Internet, „high-quality” information is now easier and quicker to obtain than ever before. However, the Internet investing environment fosters overconfidence. As you acquire more information, your confidence in your ability to predict the future rises far faster than your true ability. Online investors have access to vast quantities of data, but information is not knowledge or wisdom. In fact, having loads of data gives you the illusion of knowledge and thus control. Ultimately, this data may give you a false confidence that you can pick stocks.