Many can attest to the fact that the Dunning-Kruger effect explained (to them) for the first time why incompetent people oftentimes consider themselves the exact opposite. Not only that, as explained in this video through easy to understand examples, there is oftentimes a direct correlation between incompetence and perception of competence. To put it differently, the Dunning-Kruger effect also tells us that the more incompetent you are, the more competent you are likely to consider yourself. From the definition or meaning if you will of the Dunning-Kruger effect to real-world example, this video explains the economics behind this concept and why those who invest and/or trade should care. At the end of the day, why should you go through the trouble of understanding the Dunning-Kruger effect, from definition all the way to examples and real-world implications? The answer is fairly straightforward: humility 101. By not just "kind of, sort of" understanding the concept but downright internalizing it, you will end up being in a far better position to incorporate quite a bit more humility into your investing or trading strategy than in the present. In a nutshell, let's just say that as explained in this video, the degree to which you internalize the Dunning-Kruger effect can and in many cases will make the difference between those who do well as investors/traders by embracing humility and... well, those who choose to learn it the hard way :)