Understanding the Gambler's Fallacy

Your brain is lying to you about how luck works. Imagine flipping a coin.

If it lands on heads five times in a row, your gut screams that the next one

*has* to be tails to even things out. That feeling is called the gambler's fallacy,

and it's completely wrong. The coin has no memory. The odds for the

next flip are still exactly 50/50, just like every other flip before it.

People apply this same flawed logic to the stock market, thinking a stock is "due" for a win

after a losing streak. But markets, like coins, are mostly random.