When traders follow the actions of others to force down the value of their holdings,this is called the bandwagon effect.

Question

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The bandwagon effect refers to the phenomenon of individuals following the actions of others, often leading to an increase in demand or adoption of a particular trend or asset. In the context of trading, this can lead to traders selling off their holdings en masse, thereby forcing down the value of those assets.

When Traders Follow the Actions of Others to Force Down