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There is clearly a positive impact that confidence can have on bettors and our ability to make the right decisions when betting. However, there are also some dangers to be wary of that cause by confidence. The most obvious one to start with is overconfidence.

Overconfidence is a product of illusory superiority (or the “above average effect”) and, as the name would suggest, it results in an individual having excessive confidence in their skill or judgment. That is to say that we overestimate our own performance or our performance relative to others. In its simplest terms, overconfidence means we think we’re better than we actually are.

A lot of bettors will risk their money based on their perception of their predictive powers, with limited analysis to back it up. For these bettors, and many others, overestimating your ability to predict future outcomes will obviously be a costly mistake. Dealing with losses in betting is natural and can help question your approach. If the losses stack up but you keep going with the same approach, driven by confidence in thinking that you are right and you’ve just been a victim of bad luck, the losses will only continue.

Confidence and our perception of others

Excessive confidence in our own skill and the impact it can have on the decision-making process. Betting is one thing, but it is equally as harmful when it impacts our perception of the ability of others. This can distort our understanding of the level of competition faced in the betting market.

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If you have too much confidence in your own ability and discount the ability of others. You will underestimate how difficult it is to be in the small percentage of successful bettors. If you think you are better than others. This can not only influence your mindset and work ethic but also lead to miss opportunities and poor decisions being made.