...Technical analysis involves identifying crowd behavior in order to join the crowd and take advantage of its momentum and direction. This is called the bandwagon effect. Here’s how a bandwagon works: A fresh piece of news comes out, a majority of traders interpret it as favorable to a security, and buying overwhelms selling so that the price rises. You profit by going with the flow. Then when everyone is jumping off the bandwagon, you jump, too. As market participants get excited about a security, they become increasingly bullish and either buy for the first time or add to positions, a phase namedenamed accumulation. When traders become disillusioned about the prospect of their security price rising, they sell, in a phase named distribution. To buy 100 shares of a stock is to enter a position. To buy another 100 shares for a total of 200 is toadd to your position. If you have 500 shares and sell half, you would be reducing your position. To sell all the shares you own is to square your position. When you’re square (also called flat), you have no position in the security. All your money is in cash. You’re neutral. After traders have been accumulating the security on rising prices, eventually the price goes too far.Too far is a relative term and can be defined in any number of equally valid ways, but basically it means any price extreme that’s wildly abnormal, statistically speaking. When a price has reached or surpassed a normal limit, it’s at an extreme....
Words: 1878 - Pages: 8
...manipulate the population. The film is segmented in four main episodes that were not released at the same time, but at interspaces of 7 days sharp. Each of the chapters has its own point explaining how mass manipulation was used and how it negatively encouraged consumerism. 1st Episode: “Happiness Machines” The first episode was released in March 17, 2012 and it talks about crowd behaviour and how easy it can be influenced. Edward Bernays was actually the first man to use Freud’s theories for mass-manipulation. Edward Bernays is known as being the “father of public relations” and the “pioneer of propaganda”. Mixing the theories from Gustav Le Bon and Wilfred Trotter on crowd psychology with theories from his uncle, Freud, on psychoanalisys, he managed to become one of 100 most influential American in the world, according to Life Magazine. Motivated by the thought that masses are influenceable and dominated by the “herd instinct”, he concluded that in order for a society to be “sane”, manipulation is necessary. One of the most interesting observations made by Bernays was when watching the crowd surging for president Woodrow Wilson and thought to himself “if you could use propaganda for war, you could certainly use it for peace”. One of the most powerful propagandas, in my opinion, was the one made by the nazi party. It was so powerful that it shook democracy all over the world, replacing it with socialism; it was that powerful that it led to genocidal mass slaughter against...
Words: 1093 - Pages: 5
...Black Friday is the annual shopping holiday that occurs on the Friday following Thanksgiving. It is mostly a shopping ritual to those people living in the United States, Canada and Mexico. Black Friday is a significant day to many retail stores because it is referred to as the start of the Christmas or holiday shopping season. The origin of the popular Black Friday dates back to before 1961, in Philadelphia, where it was formally used to describe the heavy vehicle and pedestrian traffic. It was always seen as extremely disruptive to the Philadelphia Police Department and always transpired on the day after Thanksgiving and thus the name Black Friday came about. As the years passed, an alternative reasoning for the title came to be known which denoted that retailers traditionally functioned at a financial loss recognized as, “in the red” from the months January to November. “Black Friday” therefore signifies the point at which retailers finally start to return a profit, “in the black”. Over the years more and more stores have begun opening at extremely early hours to help consumers get a jump-start on the sales. Some retailers have even started the trend of opening up at midnight. The Black Friday craze is tremendously popular, so popular in fact, that many incidents including violence has been seen in some cities in the past. We wanted to research if Black Friday should be considered a ritual. Our research process included secondary and primary sources. Our primary sources were...
Words: 1986 - Pages: 8
...Various Ways to Prevent Group-think * Foster open climate for discussion ① Seating Arrangement Seating arrangement is important in creating an open atmosphere for discussion. Most organizations are hierarchical so that it is usually hard for subordinates to express their ideas directly to their heads. If members of an organization seat in orderly manner by their positions, there should be an invisible wall, which prevents from expressing their ideas. Thus, the climate is rather formal. All people would become careful on what they are saying. As a solution, a round table would be appropriate for making an open climate. It will also help reduce the distance between the heads and subordinates. ② So-called ‘Dosirak Meeting’ It means that members of a group freely speak with each other while they are having launch. In this situation, the talk will begin with small talk. Naturally, the less formal climate will lead to a brisk discussion. ③ Small group meeting A group is further divided into smaller groups. In a small group meeting, people might feel less pressure. People might freely talk in a smaller group. However, one thing should be kept that members should be rotated regularly because the same smaller groups will also lead to group-think. ④ Using Intranet, SNS(Social Networking Service) By using an intranet, members can freely share their opinions on a bulletin board. Sometimes anonymity is allowed if needed. I think it may accelerate more participation...
Words: 1027 - Pages: 5
...CASE STUDY ON GROUP BEHAVIOUR Hindustan Lever Research Centre (HLRC) was set up in the year 1967 at Mumbai. At that time the primary challenge was to find suitable alternatives to the edible oils and fats that were being used as raw materials for soaps. Later, import substitution and export obligations directed the focus towards non-edible oil seeds, infant foods, perfumery chemicals, fine chemicals, polymers and nickel catalyst. This facilitated creation of new brands which helped build new businesses.HUL believes in meritocracy and has a comprehensive performance management system, which ensures that people are rewarded according to their performance and abilities. Almost 47% of the entire managerial cadres are people who have joined us through lateral recruitment. Over the years many break through innovations have taken place. Hindustan Lever Research gained eminence within Unilever Global R&D and became recognized as one of the six global R&D Centers of Unilever with the creation of Unilever Research India in Bangalore in 1997.At Bangalore R&D center, a team of 10 scientists were appointed for a project on ‘shampoo’ line. Suranjan Sircar heading the team as Principal Research Scientist with thesupport of Vikas Pawar, Aparna Damle, Jaideep Chatterjee, Amitava Pramanik asResearch Scientists. Suresh Jayaraman & Punam Bandyopadhyay were ResearchAssociates.Vikas Pawar came up with an idea of pet shampoos during brainstorming with the team.“Hey, why don’t we target...
Words: 1879 - Pages: 8
...Description When people see some new idea or product and wonder if they should adopt it, evidence of others enjoying and having fun is highly influential. Numbers are important for the bandwagon effect to take hold. If we see three people on the bandwagon and know that hundreds have not joined, then the reverse effect will take place and we will be loathe to join. If, on the other hand, we see the wagon nearly full with lots of people we know or admire, then we will desperately try to grab the 'final' places. Once bandwagons have enough participants they are often self-sustaining and people get on board for social rather than ideological reasons. Bandwagons often have limited lifetimes and eventually run out of steam. People will quickly abandon the 'sinking ship' if they see others leaving. Example A company releases a new product and shows adverts with a big group of people having a good time using the product. A political party holds a rousing rally, with music, speeches and much cheering. Those who go are encouraged to 'keep the faith' and 'bring others on board' and otherwise keep the bandwagon going. Discussion Building the early bandwagon may require ideological appeals, but then when we see desirable others in a group we feel the pull of social proof and seek to join in. A deeper need that drives the bandwagon effect is the need to belong. When we see a desirable group, we want to join in. Expectations and promise are important in the assumption of being a 'winner'...
Words: 421 - Pages: 2
...Herding Behaviour in Malaysia Senior Project: Finance ID 49806 Andy Tan Weng Hong SCCSJ – 0011556 Upper Iowa University SEGi College University Table of Content Introduction 4 Theory Literature Review 5 Methodology 9 Findings 11 Discussion 13 Conclusion 14 Acknowledgement 15 Reference 16 Acknowledgement I would like to thank Ms. Bavani for her constant guidance and advises in the course of completing this study. Abstract Since the financial crisis of 2008, the notions and views of behavioural economists have been receiving more popularity and acceptance. Many studies have determined the existence, factors, and effects of herding behaviour primarily in the U.S. This study looks into the similarities in economic indicators, banking conditions and characteristics, and trading volume between the U.S. and Malaysia in determining herding behaviour. 1.0 Introduction * Herding Behaviour The study of herding behaviour in financial markets is gaining more popularity in the recent years since the 2008 financial crisis. Researchers and analysts have begun accepting the notions and views of behavioural economists, pouring resources and time to analyse the extent and effect of herding among market participants such as individual investors and financial analyst, as well as financial markets such as the stock market and real estate market. Herding behaviour is defined as the inclination of an individual...
Words: 30227 - Pages: 121
...bar so high, imagine the plight of those people who fail to get 'likes' on their pictures and posts- their self-esteem and confidence will be shattered. If they don't get 'likes' on their pictures/posts which in 'their opinion' is the best (no one would put up something which in their opinion isn't good), they'd start hating themselves and might also run into depression. They start copying the so-called 'cool people' on facebook who get 100s of likes on their posts/pictures and in this process, they also run the danger of losing their own individuality and identity. They try to be someone else. In this sense, we're breeding herd mentality among our youth through Social Media. I always tell people, being part of the crowd can be all 'cool and fun' but the crowd always follow the ones who stand out. Through this post, I wish to give voice to those so-called 'average people' on facebook who might not have 100s of likes on their posts and pictures but have beautiful, energetic young minds full of new ideas. Be what you are! You don't need a handful of 'likes' to get the society's approval. Be original and add 'your' value to the world, we have enough 'copies' around. We don't need to beg for 'likes' through personal messages, friendly calls or texts- realize that you were...
Words: 396 - Pages: 2
...There is a lot of concern in the media and political circles about the effects of poll results on voters. For example, in September 2012 when Obama was dominating the polls, Republicans latched onto the idea that the polling industry was skewing polls in Obama’s favor to give him the air of inevitability. When Gallup’s likely voter model later gave Romney a 7 point lead in mid-October, everyone started wondering not only what this meant about the election, but if could affect the election. Finally, in a quiet period during the morning after the final presidential debate, the price of the contract for Mitt Romney to win the election escalated rapidly on Intrade, only to retreat back down almost as quickly. Had someone tried to manipulate the contract to make it appear that Romney won the debate or that the election was suddenly tied? Would that be a rational use of money? To answer the burning question, researchers have long observed that people often conform to majority opinion (i.e. during every election, some people jump on the bandwagon and shift their preference to the leading candidate or the most popular policy). During elections, and major public policy events, much of the media coverage focuses on the “horse race,” or fluctuations in support for a candidate or policy. Reporting on public opinion not only affects support, but levels of engagement: donations, volunteering and turnout. These bandwagon effects can make polls self-fulfilling prophecies; the predictions of...
Words: 577 - Pages: 3
...1. Returning trays may be counterproductive Diagram 1 Many hawker centres have narrow passages spacing hundreds of seats out. It is already a hassle to weave in and out of the crowd safely with our food-filled tray to avoid spillages on our way to our table, which coincides with Diagram 1 whereby the cat (commonly believed to be afraid of water) has to navigate around the puddle of water in order to get to the other side. Returning trays ourselves may exacerbate this situation, leading to congestion. This becomes more evident when tray-return bays near popular stalls are full, and more movement is needed to search for empty shelves. NEA could launch a campaign to promote the habit of clearing food waste and bones from the table or tray into used plates or bowls after a meal for a start, to facilitate cleaners’ work when tray return is still unviable. 2. Inconsistency in tray-return behavior Diagram 2 For generations, service has been an invariable for patrons to food courts and hawker centres that trays and tables were to be cleaned by cleaners which can be reflected by the Egyptian-like inscriptions on the wall observed in Diagram 2, signifying the ingrained mentality that many Singaporeans carries. Similarly, graciousness or at least, the tray-returning behaviour has been inculcated in us at a young age. The irony is that we return trays in schools but we do not practise it once we are out of the compound, such irony is closely linked to the picture that...
Words: 423 - Pages: 2
...experience that’s why every time I go I get something different. Although we do not live in a city with a Cheesecake Factory, we make it a point to go when we visit Charlotte or Atlanta. The Cheesecake Factories weaknesses are the extremely long wait time. We have gone several times at different location and different times of the day, and each time our wait is at least 1 hour long. We normally wait but there have been a few times when we have left because we are starving. Another weakness is the small waiting area is also one of the main traffic areas for everyone buying cheesecake at the counter, going to and from the bar, and food dishes going from the kitchen to the tables. It's crowded and it doesn’t help that large crowds make me claustrophobic not to mention someone is always touching or brushing up again you or you’re constantly being asked to move out of the way. We like to go window shop...
Words: 604 - Pages: 3
...to the problem and negatives towards the problem. A McDonald’s in a city crowded with seniors are overwhelmed with senior customers during the early hours of the day. The senior come in as a meeting area where they eat and commune at the restaurant. The number of seniors that come in, crowds the dining area in which customers come in and eat. They come in on the fourth Monday of every month to get extra special, over the age of 55 discounts. This is a meal that cost 1.99 and free coffee refills. The staff knows the seniors very well and go to see them if they are hospitalized. The relationship is considered a good one between the staff and the seniors. In addition, a idea of adding bingo to add to the excitement of the mornings for the seniors from nine to eleven a.m. Using the party room would accommodate up to 150 senior patrons. A primary problem to this case study is the senior crowd. The restaurant already takes on the task of having enough room to seat the entire dining style crowd, if it engages in bingo than the crowd will become even more outrageous. Not only will the restaurant have the meeting crowd they will have a bingo crowd as well. Meaning, that more senior crowd will come in ready and only ready to engage in bingo. A secondary problem would be the title of the restaurant would be at risk. The fast food label may become a social restaurant, common to a bar status. It may take on the name of the “old people’s restaurant”. This will detour many...
Words: 922 - Pages: 4
...There are many vague definitions of the term ‘a crowd’ one of which is defined as by the Oxford Dictionary as “a large number of people gathered together, usually without orderly arrangement” and Le Bon (2006:15) defines a crowd as “a gathering of individuals of whatever nationality, profession or sex and whatever be chances that have brought them together”. Crowding can have a wide range of negative behaviour and negative human effects. For example, crowding in prisons has been accompanied by negative psychological reactions and increased disciplinary problems, assaults, illness complaints, deaths, and suicides. Because of this, prison wardens are affected by it as much as the prisoners themselves because they are exposed to the behaviour prisoners may have. Merely being crowded in any setting can have negative effects. In the classroom, the larger the number of students, the more the strain, anxiety, and frustration it creates. When there is less crowding in the schools, at home, or at any other social setting, there is a reduction of psychological stress and problems are reduced. In other words, the reductions of crowding have positive effects. The larger the crowd is in public settings, the more negative effects there are for groups and individuals. The effects may cause groups or individuals to lose their sanity or take part in activities they normally would not be drawn to doing. Being in a crowd sometimes can mean that you lose your individuality as you are merely blending...
Words: 494 - Pages: 2
...Introduction to Events Assessment 1 – Event review white Night Student Name: Simone Tyrrell ‘The White Night Festival is an all-night cultural event that runs from dusk to dawn in the city streets, parklands, laneways and cultural institutions in Melbourne’ (Bennett 2014) The White Night Melbourne festival is a major event that Melbourne has now hosted for two years, with its debut being in 2013. White Night Melbourne would be considered a major event as major events are a large scale special event that attracts large crowds and has a considerable amount of media attention. Major events are also expensive to stage. However, even though major events are expensive to stage they bring revenue to the businesses in the area where the event is being staged and raise awareness of the local area which helps promote tourism for a specific region. The White Night event was 1st conceived in Paris, France in 2002. Paris’ event name is ‘Nuit Blanche’ which translates to “White Night”. The event was created “to make art and culture accessible to large audiences within public spaces” (White Night Melbourne website 2014). From the event first being held in Paris in 2002, it has gained momentum as an international event with over 20 cities in the world now hosting a White Night event. Melbourne held its first White Night event in 2013 and was “a state government of Victoria initiative created by the Victorian Major Events company” (White Night Melbourne website 2014). In Melbourne’s calendar...
Words: 1569 - Pages: 7
...Powerful tool of promotion: 1. Most economic way for small and medium enterprises (SMEs) can reach large mass of potential customers in the capital and promote products unique to their states culture and heritage. 2. This gives a direct selling opportunity to small enterprises who otherwise would have found it impossible to afford setting up shops in Delhi. 3. Even for little bigger establishments who may have some presence directly or indirectly in Delhi and other metro cities this gives a rare opportunity where very lagr number of customers and business contacts are met in a small period (2 weeks) times 4. The primary objective of course is to maximise sales and the secondary objective is also to promote awareness and future business opportunities outside their own state and sometimes even outside the country. For instance, potential dealers, agents or large buyer from abroad and other parts of the country visit their stalls and connections build up from there. 5. Mass awareness of these products 6. Single major platform for tribal communities from states who otherwise don’t find many avenues to promote their handicrafts and other products. 7. It is often found that in one such trade fair the tribal group manages to sell products which they might have made over last 3-4 months. But more importantly it creates a major awareness of these tribal products in more urban areas. Special features: 1. The pavilion of the state where the main theme of the state’s heritage...
Words: 723 - Pages: 3