Herd mentality means that an individual is affected by the behavior of the outside world and behaves in a way that is consistent with public opinion or the majority of people in his or her own perception, judgment, and understanding. In the recently aired second season of "Taohuawu" by
, everyone's performance was truly reproduced when the dock leader organized a meeting for the residents to vote on whether to hold a bonfire party and when everyone voted on whether to send a person to an island for a night of exile. Herd mentality.
We will take into account the opinions of the majority of people, rather than simply express and follow our own opinions and opinions. Being excluded from a group often makes people feel socially miserable. Of course, there are very few exceptions, such as Wang Chuanjun .
Countless scientific experiments have also shown that herd mentality is a common psychological phenomenon. Only a small number of people are able to maintain their independence and not follow the crowd.
Once, the elevator in the unit broke down, so colleagues in the unit filed up the stairs. Under the leadership of the two colleagues at the front, everyone followed without thinking. It was not until they reached the door of the basement that they discovered that the first floor was not the target. They all went back to the first floor.
Another time, the unit organized a field team building. Under the leadership of the two colleagues in front, we collectively walked on the wrong mountain road, and then turned back collectively.
This is not an example, there are many, many such examples.
Why do people have a herd mentality?
I think that in the long history of human survival and evolution, the herd mentality had great advantages at the beginning. For example, fish in the ocean live in groups, ensuring the survival rate of fish schools. Another example is that many animals (including humans) live in groups. Places with many people make them feel safer and can overcome difficulties together and obtain a better living environment.
So, is herd mentality in investing a good thing? Not really. Herd mentality is taboo in investment, but independent thinking and judgment are required.
So some people say that your personality is very advantageous when judging whether you are suitable for investing. If you always think independently and make decisions independently, then your probability of successful investment will be much higher than that of someone who follows what others say.
Another reason why people follow the herd is that most people are unwilling to think, let alone think deeply. Wang Xing of Meituan once said, “Most people are willing to do anything to avoid real thinking.”
Simply put, When we are not thinking, we stay in the comfort zone of our brains, but when we are thinking, we need to get out of the comfort zone, and the deeper we think, the further we are from the comfort zone.
In-depth thinking requires more time and energy, and even requires repeated practice, trial and error, and opposition to revision. Independent thinking and independent judgment are far safer and more comfortable than following the crowd.
In the world of investment, there are always a few who can succeed, because most people are unwilling to think and break away from the masses.
Check to see if you have a herd mentality in investing? If you are not sure, you may wish to compare the following:
1. In life, do you always make decisions by yourself or listen to the opinions of the public?
2. When organizing meetings, do you dare to express your different opinions and continue to insist on them even when the public does not agree?
3. Do you like to think independently and deeply?
4. Does the opinion of the majority influence your independent decision-making?
5. Do you choose stocks/funds yourself, or do you buy them through recommendations from family, colleagues or friends?
6. When the market rises sharply, do you tend to buy immediately to avoid missing out on the opportunity to make money?
7. When the market falls sharply, do you tend to sell quickly to reduce the psychological burden?
8. When buying and selling stocks/funds, have you ever thought or made independent decisions?
9. Do you like to chase popular stocks or funds?
10. Do you like to invest after chasing hot news or news?
If you pass the above self-tests and you don’t occupy any of them, then congratulations, you don’t have a herd mentality in your investment, and the door to financial freedom may have been opened to you.
Note: The market is risky, so be cautious when investing! This article is only for sharing data, content, etc. and does not constitute any investment advice.
