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Behavioural Finance: Gambler’s Fallacy

| Market Insights, noimage

Gambler’s Fallacy is our misunderstanding that random past events can have an effect on future events. A single coin toss always has a 50/50 chance of landing on heads – even if there have been a series of 10 tails tossed just before.

Conclusion: Don’t make decisions based on misunderstanding, look at the fundamentals and make an informed decision.

Source: www.behaviouralfinance.com

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