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gambler's fallacy

how does an investor act as a result of this behavioral effect?

Taking unwarrented bets to break even, since he has nothing to lose.

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Gamblers fallacy is when you think something is "due". IE flipping a coin and you get 10 heads in a row you think its more likely that a tail is due even though its still 50/50.

Market down 10 years in a row its "due" to go higher.

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Crazily betting on mean reversion...

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