Herd Instinct

Herd Instinct is the inclination of individuals to follow the actions of a larger group, often driven by emotional and psychological factors rather than independent analysis. In financial markets, this can result in rapid price movements and bubbles as investors collectively buy or sell assets based on perceived group consensus. It is crucial for traders to be aware of herd instinct to avoid making impulsive decisions that may not align with their own analysis or the market's fundamental values. Recognizing this behavior helps in making more informed trading choices.