Herd In Finance

[Suba]

Herd in finance or what we know as herd behavior, is a tendency of individual or novice investor actions that are influenced by other people's financial decisions (en masse). For example, if a novice investor hears or reads news, market chatter about buying/selling certain stocks, then instinctively the herd will take the same action, without doing any analysis or research first.

 

[Kross]

Those people that are herd investors are the kinds that easily get scammed. Refusing to study more about an investment makes a person vulnerable to scams

 

[Springtime]

Following the herd to make investment is risky and may be scammed. One should do research before making investments.