Herd Mentality

Herd Mentality

Herd mentality refers to the tendency to follow the actions of 그래핀 관련주 a larger group, often leading to collective irrational behavior.

This can result in:

  • Market Bubbles: Inflated asset prices due to widespread buying.
  • Panic Selling: Large-scale selling triggered by fear, causing steep declines in stock prices.

Psychological Strategies for Better Investing

Behavioral Finance Principles

Behavioral finance combines insights from psychology and economics to understand how investors make decisions.

Prospect Theory

Prospect theory suggests that people value gains and losses differently, leading to irrational decision-making. Key concepts include:

  • Loss Aversion: The tendency to fear losses more than equivalent gains.
  • Endowment Effect: Valuing owned assets higher than their market value.