gambler's fallacy in finance
The gambler's fallacy in finance refers to the mistaken belief that past events or patterns in markets or investments can predict future outcomes. It is the erroneous assumption that because something has happened frequently in the past, it is less likely to occur in the future, or vice versa. This fallacy overlooks the random nature of financial markets and investments, leading investors to make poor decisions based on incorrect expectations.
Requires login.
Related Concepts (1)
Similar Concepts
- appeal to probability fallacy
- circular reasoning fallacy
- decision making in finance
- decision making in finance and investments
- decision-making in finance
- gambler's fallacy
- gambler's ruin
- gamblers' fallacy
- overconfidence bias
- planning fallacy
- regression fallacy
- statistical fallacies
- statistical fallacy
- stochastic processes in finance
- sunk cost fallacy