Herd Instinct


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Herd Instinct

A sociological phenomenon in which everyone does what everyone else seems to be doing. In investing, the herd instinct is seen most commonly in panic sells and rallies that occur without regard for broader indicators. That is, regardless of the sustainability of a rally or the overreaction of the sell-off, the concept of a herd instinct suggests that traders will continue to follow the trend until contrary evidence becomes overwhelming (or simply until they calm down). See also: Behavioral economics, Crowd.
References in periodicals archive ?
Given the power of the herd instinct in all financial markets, an understanding of mass psychology would probably be of more use.
Because the death penalty does nothing more than sate a herd instinct for blood-letting.
Call it the herd instinct, call it bravery, call it stupidity but somehow 430 people - a record turnout - resist the urge to stop running and instead plunge neck-deep into the December sea.
Judge Gerald Price told them, "It was the herd instinct.
Since horses follow a herd instinct (jockeys, too, some might say), this inclination towards lemming-like over- exuberance early on in a race -inducing the same potential for self-destruction-is exceedingly difficult to curb.
The markets could behave 'very abruptly', particularly when the herd instinct takes over.
She has been just as withering in her comments about higher education in general, at least in some of its herd instincts.
Up to 100 whales became stranded at Farewell Spit on January 23, and although rescuers initially re-floated some 39 of the animals, many, following their herd instincts, re-beached overnight.
This facility also employs a natural horsemanship technique, which endorses appealing to a horse's natural and herd instincts, which proved to be perfect for our veterans with PTSD.
Donald Fernie to comment that "the definitive study of the herd instincts of astronomers has yet to be written.
Introductory chapters give practical tips on bovine body language, the history of crossbreeding, the science of herd instincts, and visual differences between breeds.