In the book "Behavioral Finance", it is written: "Betting on the continuation of the current trend is often more in line with the real mentality and practice of most ** managers than preparing for an unknown style reversal." "*The reason why managers like to bet on current trends is because of peer pressure. When they want to choose a choice different from their peers, if the final result is wrong, then he may be responsible, or even unable to stay at the table, on the contrary, when they choose the same choice as their peers, even if they are wrong, no one will blame him, more is to put the responsibility on the environment, in this kind of game, most of the best managers will choose the same choice as others. We see so many ** groups, in fact, ** managers do not have 100% control of the unknown to their own best protection. On the contrary, if everyone is not optimistic, they will also clear the goods in a group.
We can't change the practice of the manager, we can only adjust our own operations, when the group is overvalued, when the group sells, it will be seriously undervalued, and this kind of fluctuation is where the profit lies. When we dare to think independently, sell when others are huddled**, and when we sell in huddles**, you will get excess returns.
You may find it difficult to say, but once you understand the underlying principle, it will become easier and easier through practice and experimentation. There is never anything simple in this world, many things are tried from the right cognition, then adjusted, and finally succeeded.