Hubris

AAA

DEFINITION of 'Hubris'

The characteristic of excessive confidence or arrogance, which leads a person to believe that he or she may do no wrong. The overwhelming pride caused by hubris is often considered a flaw in character. While these hubris feelings are often justified, they often cause irrational and harmful behavior.


Chief executive officers and very successful businessmen who are overcome with hubris tend to be difficult to work with in team settings.

INVESTOPEDIA EXPLAINS 'Hubris'

Hubris may be developed after a person encounters a period of success. Corporate executives and traders overcome by hubris may become a liability for their firms. A manager might start making business decisions without fully thinking through the consequences, or a trader may begin taking on excessive risk. In many cases, people overcome by hubris will bring about their own downfall.

RELATED TERMS
  1. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. ...
  2. Barings Bank

    A British merchant bank that was started in 1762, and for centuries ...
  3. Long-Term Capital Management - ...

    A large hedge fund led by Nobel Prize-winning economists and ...
  4. Risk

    The chance that an investment's actual return will be different ...
  5. Rogue Trader

    A trader who acts independently of others - and, typically, recklessly ...
  6. Endowment Effect

    The endowment effect describes a circumstance in which an individual ...
Related Articles
  1. Options & Futures

    The Importance Of Trading Psychology And Discipline

    Find out how investing success can be more about your mindset and less about the markets.
  2. Options & Futures

    How To Read The Market's Psychological State

    Discover what on-balance volume, accumulation/distribution and open interest can tell you about the market mood.
  3. Options & Futures

    Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
  4. Forex Education

    Lessons From A Trader's Diary

    Discover what this trader learned from his mistakes and how to uncover your own.
  5. Active Trading Fundamentals

    20 Rules To Trade More Professionally

    Break free from the pack and join the professional minority with an approach that raises your odds for long term prosperity.
  6. Chart Advisor

    These 4 Swing Trades Could Place You in the Money

    Take advantage of moves both higher and lower with swing trades based on trend channels.
  7. Trading Strategies

    You'll Lose Profits Without This Trading Strategy

    A trading edge defines your technical or strategic advantage in the highly competitive market environment.
  8. Investing

    Why These Are 2015's Most-Promising Stocks

    A short list of stocks with strong potential for 2015 and beyond.
  9. Chart Advisor

    Are These Triangle Patterns Breaking Out?

    The next trending move in these four stocks could start from the breakout of these triangles.
  10. Trading Strategies

    Trader Rookie Mistakes: Avoid Them While You Can!

    These 10 common trading mistakes can rob capital and undermine confidence.

You May Also Like

Hot Definitions
  1. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  2. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  3. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  4. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  5. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center