The Danger of Overconfidence

• You may fail to deliver on your promise.
• You may blame yourself too much. This is the other side of being overconfident. When you are overconfident about something and fail, you may blame yourself too much for the outcome.

Here are some tips to overcome overconfidence:

1. Acknowledge the role of luck. Many people in the financial market think that they can predict how the market will do. They aren't aware that in many cases they are just lucky.
2. Don't credit yourself too much. Continuing the previous point, be careful not to credit yourself too much when you are successful. Remember that you are probably just lucky.
3. Comprehend the complexity of a project. When you are about to take a project, dig deep into it to really understand the breadth and scope of the project. Be on the lookout for potential pitfalls.
4. Have a cushion. Even after you comprehend the complexity of a project, you still need to have a cushion. Give yourself extra time and resources for unexpected things.
5. Be prepared for failure.