# Gambler's Fallacy

*Behavioral Finance — Finicade finance glossary*

The gambler's fallacy is believing that independent events self-correct — that a coin which landed heads five times is due for tails. In markets it appears as the conviction that a stock which has fallen for months must be near a bottom. Genuine mean reversion exists in some series, which is what makes the fallacy so hard to spot: sometimes the intuition is right for a reason that has nothing to do with being due.

**Also known as:** gamblers fallacy, due for a win

**Related terms:** [Law of Large Numbers](https://finicade.com/glossary/law-of-large-numbers), [Probability](https://finicade.com/glossary/probability), [Random Walk](https://finicade.com/glossary/random-walk), [Mean Reversion](https://finicade.com/glossary/mean-reversion), [Behavioral Biases](https://finicade.com/glossary/behavioral-biases)

Source: https://finicade.com/glossary/gamblers-fallacy