Now have a good took at your portfolio and see how many of them end up in your one because of herd instinct.
NEXT... this is normal behavior for humans so what is the big deal?
OK..in cse we have 1. Institution investors
4.HNWI --- out of those 4 players 1. first two in the selling side .
2. last two in the buying side.
NOW is the interesting part of the game.
HNWI can use retailer's herd instinct to their advantage easily since other 2 players are going opposite direction.
EXAMPLE- xxx share trading at 120, HNWI'S buy this at this level and promote through few broker huts as BUY, then bring up the price to 200,show some big BUY orders in the order book ,HERD INSTICT kick in price goes up to 500 ,HNWI'S dump the share with hefty profits on the HERD.(long story short)
This is just 'FOOD FOR THOUGHT' for the weekend. thanks.