Collective behavior on the internet as displayed in some online forums ... 'Communal reinforcement is a social phenomenon in which a concept or idea is repeatedly asserted in a community, regardless of whether sufficient empirical evidence has been presented to support it. Over time, the concept or idea is reinforced to become a strong belief in many people's minds, and may be regarded by the members of the community as fact' 'Most of the time, people conform for one of two reasons: informational social influence, following the opinions or behavior of other people because we believe that they have accurate knowledge and that what they are doing is right, and normative social influences, conforming to obtain the reward that comes from being accepted by other people while at the same time avoiding their rejection' 'Herd behavior describes how individuals in a group can act together without planned direction. The term pertains to the behavior of animals in herds, flocks and schools, and to human conduct during activities such as stock market bubbles and crashes, street demonstrations, sporting events, religious gatherings, episodes of mob violence and everyday decision-making, judgment and opinion-forming' 'Crowds that gather on behalf of a grievance can involve herding behavior that turns violent, particularly when confronted by an opposing ethnic or racial group' 'Large stock market trends often begin and end with periods of frenzied buying (bubbles) or selling (crashes). Many observers cite these episodes as clear examples of herding behavior that is irrational and driven by emotion - greed in the bubbles, fear in the crashes. Individual investors join the crowd of others in a rush to get in or out of the market' 'Some followers of the technical analysis school of investing see the herding behavior of investors as an example of extreme market sentiment. The academic study of behavioral finance has identified herding in the collective irrationality of investors'
First good post i have read from you GrandSC. I agree with your post. But IMO also the big players have a herd behaviour, otherwhise markets would not move how they do. Only competition left, between pros is only discipline.
This was not written by GS. It was written by his online girlfriend/therapist. Nonetheless, good post.
bhardy307, Of course it wasn't written by me. Don't you know what quotation marks signify ? You did go to school didn't you ?
I don't see a source. I thought you wrote it. You are saying you plagarized it? I thought that was bad Karma. I hope lightning strikes you down soon. Let me show you how to do it. "Please don't copy my analysis without attribution. It's bad karma." -Grand Super Cycle's retarded blog
Michael Lewis book "the big short" Imo, is probably the most recent real life example of *Mob Mentality - Herd Behaviour- Group Hysteria* The two guys in the book go up against the smartest people in the WS industry. Lewis writes of the varied logic of the crowd (which is wrong) and explores the logic of the two guys [fund] customers who put pressure on them to give up their short position.. Barton Briggs calls it "Groupstink". --------------- The herd is not really a school of anchovies, one turns they all turn.The herd is a million different reasons and the sum of herd price logic is "up".