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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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| We speak of herd behavior and are contemptuous of the "average producer. This workshop moves you from copycat, herd behavior toward the innovative actions required for long-term business success. He writes: "Trapped in the logic of herd behavior, Wall Street will inevitably keep inflating the bubble until it bursts. |
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