Have You Been Fooled By The Law Of Small Numbers?

Cognitive biases can negatively affect our decision making, especially when it comes to trading and investing

Everyone has heard of the law of large numbers, but what about the law of small numbers?

In truth, there isn’t really such a law.

The turn of phrase is simply used as a parody of the actual law (of large numbers) to illustrate that humans tend to draw firm conclusions from small samples – to their detriment.

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