🐑 Why are we all sheep in the stock market?

The answer: our cognitive biases 🧠

And no one is spared!

(not even you who think you are different)

Here’s how to avoid them 👇

1️⃣ Human beings are social animals

We are wired to live in groups.

For thousands of years:

✅ Fitting in meant surviving.

❌ Isolating meant dying.

Result: we naturally imitate what the group does.

2️⃣ In the markets, this social pressure is everywhere

When everyone buys the same stock:

📈 We fear missing the train

😰 We doubt our own analyses

And we end up doing like the others

3️⃣ Why does our brain do this?

It has evolved to survive in groups:

✅ Seek approval

✅ Avoid exclusion

✅ Imitate others

Not to make rational decisions about listed companies.

4️⃣ Enemy No. 1: The anchoring bias

When a stock drops, we immediately think:

✅ "It was worth €100, at €70 it’s an opportunity."

Our brain loves to compare to the past.

Even if the past has no value today.

The price becomes a psychological benchmark, not an analysis data.

5️⃣ Enemy No. 2: The ego

When we buy a stock, we want to believe we were right.

- We modify our scenario instead of questioning it

- We seek confirmations rather than contradictions

6️⃣ Even experts are not spared.

A study on 3,8 million forecasts collected between 1994 and 2019 proves it:

- "Glamour" stocks are overrepresented

- Analysts often follow the trend

- Boldness is rare

7️⃣ And when all of this mixes

💥 Following the crowd

💥 Anchoring on the highs

💥 Influence of other investors

We get an explosive cocktail to create bubbles (or miss opportunities)