Watch out, herding comes naturally to us
The Hindu
Greed, for lack of a better word, is good, said Gordon Gekko, a character portrayed by Michael Douglas in the 1987 Hollywood classic, Wall Street.But what about herding (crowd behaviour) that drives p
Greed, for lack of a better word, is good, said Gordon Gekko, a character portrayed by Michael Douglas in the 1987 Hollywood classic, Wall Street.
But what about herding (crowd behaviour) that drives prices? In this article, we show why herding is good for trading, but not so for goal-based portfolios.
Your trading portfolio should capture short-term movements in the market. That means you ought to buy stocks that are on an uptrend, referred to as momentum trades; for, a stock that is on uptrend will continue to be on an uptrend till an opposite force acts on it.