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I once met a guy on a train, who turned out to be a multi-millionaire, who told me his investment strategy was based entirely around this very phenomenon. I sti
by zapperdapper 8y ago
I once met a guy on a train, who turned out to be a multi-millionaire, who told me his investment strategy was based entirely around this very phenomenon. I still keep in touch with him from time to time. Fascinating guy.
More personally it annoys the hell out of me and I avoid doing it. It's the same of the train. I had a woman get very ratty with me the other day because I didn't stand up just because everyone else did (she was window and I was aisle). I wouldn't have minded but we were at least five minutes from arriving in the station!
There are probably all sorts of studies on this but I suspect the main reasons are 1) herd mentality 2) impatience. The levels of impatience I see on a daily basis are truly scary.
- mgliwka 8y agoMaybe I'm missing the obvious, but would you mind to elaborate how this strategy works?
- zapperdapper 8y agoThe herd mentality is very much in evidence in the stock market. There's often no logic to it. By standing apart from the herd and sometimes running in the opposite direction you can often make a killing. Example : 2007 when the market crashed. A lot of people panicked and sold because the market dropped (because a lot of people were also selling).