FinTwit and the majority illusion

I admit it. I’m a big fan of Twitter. It’s allowed me to connect with people from across the globe, people that it would be impossible to communicate with least of all know existed prior to Twitter. The people I follow have opened my mind to ideas and opportunities that I wouldn’t have heard about otherwise.

Individual investors decisions often depend on the ideas and behaviour of other investors, investors that we increasingly find on Twitter (or FinTwit). When we perceive that a high proportion of our ‘group’ are going to act in a certain way then we are more likely to…