Overconfidence is a cognitive bias where individuals overestimate their knowledge, abilities, or the accuracy of their predictions. This can lead to poor decision-making, as people may take unnecessary risks or ignore important information. Overconfidence is common in various fields, including finance, sports, and everyday life. This phenomenon can be observed in many situations, such as when investors believe they can predict market trends better than they actually can. Similarly, psychologists study overconfidence to understand its impact on behavior and decision-making. Recognizing this bias can help individuals make more informed choices and avoid potential pitfalls.