#Herd Behavior
2 articles on Herd Behavior — behavioral finance and market psychology from IM7 Intelligence.
When Liquidity Disappears: Why Markets Move Faster Than Emotions
Markets don't move because emotions suddenly change. More often, emotions change because liquidity disappears first. When buyers and sellers step away, even small orders can trigger outsized price movements, creating the fear, urgency, and volatility most traders mistakenly believe caused the move.
The Paradox of Prudence: Why Retail Traders Wait for Confirmation and Often Miss the Big Moves
Retail traders often wait for confirmation before entering a position, believing certainty reduces risk. In reality, markets often charge a premium for certainty, turning caution into missed opportunity. This article explores how confirmation bias, loss aversion, and herd behavior can cause investors to arrive late to the very moves they hoped to capture.