Abstract: Financial markets are thought to be efficient, driven by data, but also greatly influenced by our own emotions. That is, people follow what the majority is doing, also known as herd instincts. This kind of mentality has been identified as a cause of serious distortions in financial markets, whether bullish or bearish. Behavioral finance studies these effects by examining the impact of fear, greed, and imitation on investment decisions. History offers many examples of the effects of mass panic and trading on emotions, as witnessed in events such as the 2008 crisis, the Dot-com Bubble, and more recently with GameStop. This paper examines the psychological rationale for following the herd, the cognitive biases that reinforce it , and technology fueling market volatility. This also provides the tactics to reduce the effect of herd imitation, disseminate investors’ information, and stabilize the market.