What does the herd effect refer to in life?

If everyone says it's good, then many people think it's good.

The herd effect, also known as the "herd effect": it is a phenomenon in which an individual's perception or behavior changes in a direction consistent with that of the majority due to the influence or pressure of a real or imagined group.

Herd behavior can also be called group psychology, social pressure, contagion, etc., which is the earliest term in investment, which mainly refers to the phenomenon of learning and imitation in the trading process of investors"There is a way to learn from it", blindly imitating others, thus causing them to buy and sell the same ** in a certain period of time.

A stick is placed horizontally in front of a flock of sheep, and the first sheep jumps over, and the second and third will follow suit; At this time, the stick is removed, and the sheep behind it comes here, still like the sheep in front, and jumps upwards, although the stick that blocks the way is no longer there, which is what is called"Herd effect", also called"Herd mentality"。

It is manifested in the acceptance of dominant ideas and behaviors in specific or temporary situations, and in the acceptance of long-term dominant ideas and behaviors. People will follow what the public agrees with, dismiss their opinions by default, and do not subjectively think about the significance of events.

In economics, the herd effect refers to the presence of investors in the market who have not formed their own expectations or have not received first-hand information, and they will change their behavior according to the behavior of other investors.

The flock is a very scattered organization, and usually rushes left and right blindly together, but once one sheep moves, the other sheep will rush up without thinking, completely ignoring the possibility of a wolf in front of them or a better grass not far away. Therefore,"Herd effect"It is a metaphor that people have a herd mentality, and the herd mentality can easily lead to blind obedience, and blind obedience often falls into ** or fails.

During SARS, the vinegar was grabbed, and the salt was grabbed, and the herd effect could be said to be ubiquitous.

A long time ago, there was a news section that did such an experiment: at a stop where no one queued up and was always rushing to grab the bus, three volunteers were arranged, and these three volunteers acted as the leaders and lined up neatly. The host observes the behavior of passengers coming behind through surveillance.

I saw that the people who came to take the bus in the back saw the volunteers queuing, and they all lined up honestly at the back of the line. The scene that had been chaotic before was gone.

This experiment is a testament to the existence of the bellwit effect. In a group of people, as long as the people in front are following the rules, the people behind will not break the rules. And as long as one person breaks the rule, there may be more people who will no longer follow the rule.

This phenomenon is especially noticeable when crossing traffic lights. A group of people are waiting for a red light, and as long as someone starts running the red light, the people behind will follow, which is what we jokingly call a Chinese-style crossing.

In the past, when I was in Anhui, at the train station, there was a bus to Anhui University, a university town, and the students lined up in a queue of dozens of meters, getting on the bus in an orderly manner, which was in stark contrast to the situation of competing for the bus to other schools next to it, and this scene has always been fresh in my memory.

The "herd effect" is essentially a herd mentality, and herd psychology can easily lead to blind obedience.

Many of the meetings in our daily work are inefficient, and the reason for this is also related to the herd effect. The ideas put forward by those who came before them can easily be followed by those who have no views or are not firm in their positions. Therefore, some companies will ask everyone to write down their opinions before the meeting and then hand them to the meeting host, who will summarize them.

The rest of the meeting revolved around the ideas that everyone had submitted and summarized. It effectively prevents the herd phenomenon that will occur in most people, and makes the views discussed in the meeting more different.

In my concept, as long as people gather in a place where people gather, there is no good thing, so I never follow the trend to invest. In addition, set take profit and stop loss points, and close them as soon as they come, and avoid risks and avoid greater losses.