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Here, author Conor Mac explores cognitive dissonance, emotional motivations, and the illusion of control as key drivers behind these decisions, despite their inherent irrationality.

What you should know: When it comes to behaviors like attempting to "beat the market," most investors underestimate the slim odds of success. However, external factors such as social proof, herd mentality, and the emotional thrill of potential victory often reinforce this risky behavior, even when logic suggests otherwise.

Key Takeaways: Whether in investing or life, you can foster better judgment for decision-making by embracing reflection during tough times and focusing on probabilities and risks versus subjective rewards.