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Tag: representative heuristic

A golden coin floating on water, symbolizing past success in finance and investments influencing future expectations

The Hot Hand Fallacy: Myth or Reality in Finance and Investing?

December 19, 2024 FinanceFacts101 Business Finance

Introduction to the Hot Hand Concept The “hot hand” concept, also referred to as the “streak fallacy,” suggests an individual or entity’s past successes can influence their future achievements. The belief that someone or something is “on a roll,” and their luck will continue, is deeply rooted in human psychology.

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