How the Gambler’s Fallacy Skews Your Investing Brain

The Gambler's Mistake Affects How You Invest The Gambler’s Fallacy, also known as the Monte Carlo Fallacy, is the incorrect belief that past random events influence future outcomes. This cognitive error affects decision-making in gambling, investing, and real estate. Misreading patterns or assuming results will “even out” can lead to poor financial decisions. Understanding randomness, [...]