**The Gambler Fallacy: A Trading Pitfall**
Have you ever wondered why even the most seasoned traders fall victim to a particular mindset? It's time to expose the truth behind the Gambler Fallacy.
**What Is The Gambler Fallacy?**
This psychological bias arises when we believe that a random event, like a coin flip or a stock price movement, is more likely to correct itself after a streak of favorable outcomes. In reality, each occurrence is independent and unaffected by previous results.
**The Trap of Independent Thinking**
You might think: "If the price has gone up too much, it's now due for a drop to restore balance." However, in a strong trend, candles are not independent events – they're part of a larger pattern.
🔸 **Key Takeaway:** The market doesn't work like flipping a coin. It's essential to understand and manage your emotions to avoid falling prey to this common mistake.