How can you ignore the herd & be your own boss?

This is common habit to follow others & invest in what they are investing into..... Most of the time, it leads to bad investment decisions as an individual ends up buying something unsuitable for his needs. Buying into small and micro-cap companies just because they have rallied on the bourses is a classic example of herd mentality. In most cases, followers fail to notice a change in the trend and incur losses. Unfortunately, blind followers return when they spot a herd to follow.

Not only in equity but also in each and every investment we have to make self analysis before investing. It means detailed study for the sector and company as well. In short, Take views from everyone but final decision will always be yours as per your own analysis.

I agree with Rashmi here & would like to add another idea..

It is the ‘endowment effect’ that blindfolds many investors when the stocks they hold start their downward journey. Individuals believe that the things they own are worth more than their real worth.

Investors are no different. The stocks owned by them are seen to be more valuable than their actual worth. Investors find reasons to substantiate why they bought a stock and why they were holding on to a particular stock.

Knowledge applied is key to success, Start with low volume, learn the trend, understand the phycology of the traders, then play the game. This is most exciting and lucrative game, but eaqually Risky, so advise of the people like Warren Buffet is also the same, begin slow and play stedy.

My formula is save some first, then Invest more and Spend only from your interest earned from your investments. Which will keep tesnions at Bay.