Explain the hindsight bias

Hindsight bias is a psychological occurrence that allows people to convince themselves that they had accurately predicted it before it happened. This can result in people thinking that they can correctly predict other events. Investors feel the pressure to make purchase of stocks in a timely manner so as to maximize their returns. They regret after a loss occurs. Investors should be careful how they evaluate their own ability of predicting current events and its impact on future outcomes.