Day Trading Herding Instinct.

How does the Day Trading Herd Mentality come about. It's mainly due to the mass media because every trader has access to the same information. But most don't act on that information right away, they wait and see. The more times a person hears about a stock or index and how well it's doing the more likely they are to want a piece of the action.

Most people are trained by society to be followers not leaders. It's something we all do without even realising it. And it's when people start to blindly follow that gets them into all sorts of trouble. The herd takes on a life of it's own. The same can happen when daytrading, only the herd is smaller and often more specialised in nature. But they still have access to the same information and tend to act over time the same way, they tend to follow each other.

How can you avoid this pit fall. The main thing to remember is that you don't want to be at the end of the daytrading herd, you want to be at the front of this daytrading herd. To be a leader requires you to act fast before anyone else with the courage of your convictions.