While we normally see boosting someone's confidence as a good thing, having too much of it can have a negative effect. Being overconfident can lead to losing money from poor investing decisions, losing the trust of people who rely on you, or wasting time on an idea that'll never work.

What happens when your overconfident?

Overconfidence refers to a biased way of looking at a situation. When you are overconfident, you misjudge your value, opinion, beliefs, or abilities, and you have more confidence than you should given the objective parameters of the situation.

How does overconfidence affect decision making?

Overconfidence is a universal and prevalent cognitive bias affecting decision making in operation management. ... First, overconfidence makes the manufacturer produce greener products than the rational manufacturer, and overestimation results in a higher greenness deviation than overprecision.