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Herd behavior is when people tend to mimic the financial behaviors of the majority of the population. Herding is notorious in the stock market as the cause behind dramatic rallies and sell-offs.

This occurs because we are innately social and thrive on being part of a community. When you go against the grain, it can feel uncomfortable and lonely.

It's important to make informed decisions about your money without letting yourself get swept up in trends or peer pressure.