Thursday, June 24, 2010

You get pleasure from being with the crowd

A study in Current Biology finds brain activity that show that conformity or being with the crowd gives pleasure. We like to herd at a very fundamental basis. Agreement with experts gives the same response as a reward. You will also place more value on things that people tell you have more value. When experts agree, your awareness is heightened.

In other words, investors often go along with the crowd because—at the most basic biological level—conformity feels good. Moving in herds doesn't just give investors a sense of "safety in numbers." It also gives them pleasure. WSJ online

Fighting the crowd is never easy. Better to fail with the crowd than be unique?

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