Herd Mentality!

Many investors especially beginners have herd mentality. That is a tendency to conform to the actions and decisions of the majority without critically evaluating the underlying rationale or potential risks involved. This leads to buying or selling assets at the wrong time. When everyone is rushing to invest in a particular asset or market, it often leads to inflated prices or speculative bubbles. Conversely, when everyone is selling off their investments, it can create panic selling and an unnecessary decline in asset prices. Herd mentality can lead to impulsive and emotionally driven decisions, causing financial losses and missed opportunities.