Behavioural Finance: Gambler’s Fallacy
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.
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