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Placeholder Lesson:
** This lesson is generated with AI assistance and approved by Danny Nelson. This lesson will communicate the essence of the topic for now until Danny can create a full lesson. **
The illusion of control is the belief that one can influence outcomes that are largely due to chance.
People often think their actions or skills affect random events.
This bias leads to overconfidence and unnecessary risk-taking.
In finance, it may cause excessive trading or attempts to “time the market.”
The illusion creates a false sense of mastery over uncertain situations.