Law of large numbers
Over many repeats, the share of each outcome settles close to its true probability. Not because luck evens out, but because early streaks get drowned out by everything that comes after.
In plain English
Flip a coin ten times and you might get seven heads. Flip it ten thousand times and you'll be very close to half heads. The coin hasn't corrected anything; the first few flips just stop mattering much once there are thousands of others.
Uncle Gary explains
After five reds in a row, Uncle Gary bets on black because the law of large numbers says things even out. The law of large numbers was talking about the next ten thousand spins, not the next one.
Why it matters for your money
A strategy's true win rate only shows up over many trades. A handful of results, good or bad, says very little.
Where we tested it
Related terms
All glossary terms. Educational content, not financial advice.