Category: Trading
The Herd Mentality in Trading: Why You Should Avoid the Bandwagon Effect
Have you ever done something just because everyone else was doing it? In trading, this is called “Herd Mentality” also known as “The Bandwagon Effect.” It’s when we follow what other investors are doing, thinking they must know best. But just because a lot of people are buying or selling a certain stock, doesn’t always…