The streets of Aranyapur were unusually noisy that morning. People were running, shouting, and pointing toward the town square.
“Aryan!” someone shouted. “Run! Hurry! Everyone is going there!”
Aryan froze.
“What’s happening?” he asked.
Before he could gather his thoughts, the Market Monk gently pulled him aside.
“Calm down, Aryan. First observe. Then act.”
Aryan was confused.
“But Master… everyone is running. Shouldn’t we follow them?”
The Monk smiled softly.
“And today, you will learn why following the crowd without thinking can lead to disaster… in life and in investing.”
⭐ THE PANIC CROWD IN THE SQUARE
When they reached the town square, a huge crowd had gathered around a shop named Golden Star Jewellery.
People were screaming:
“Gold price will crash!”
“Sell your gold now!”
“Buy silver instead!”
“Friend of my cousin told me gold will drop 30% by evening!”
Aryan looked shocked.
“But Master, how can so many people be wrong?”
The Monk replied calmly:
“When fear spreads, people stop thinking.
When greed spreads, people stop thinking.
This is called herd behaviour.”
⭐ THE SILLY REASON BEHIND THE PANIC
The Monk walked to a small fruit vendor nearby.
“Did you hear why people are panicking?” he asked.
The vendor laughed.
“Yes! Someone posted a rumour on social media that a big billionaire is selling all his gold. Nobody knows if it’s true—but everyone started running!”
Aryan stared at the crowd.
“So this chaos started because of… a rumour?”
“Yes,” the Monk said.
“A rumour turned into fear. Fear turned into panic. Panic turned into herd behaviour.”
⭐ THE MONK’S FIRST TEST – THE EMPTY BOX
The Monk picked up a large wooden box and placed it in the middle of the crowd.
He whispered to Aryan,
“Watch carefully.”
At first, nobody cared.
Then someone shouted,
“There must be treasure inside!”
Another person echoed,
“Yes! Why else would someone place a box here?”
Within minutes, people surrounded the box, some trying to open it.
Aryan whispered,
“Master… there’s nothing inside that box, is there?”
“No,” the Monk said.
“But when the crowd believes something… individuals stop thinking for themselves.”
⭐ THE MARKET BEHAVES THE SAME WAY
The Monk explained:
“In the stock market, herd behaviour is deadly.”
He listed common examples:
✔ When one person buys a hot stock, others copy
✔ When one person sells during a dip, everyone panics
✔ When rumours spread, people act without checking facts
✔ When a stock goes up fast, greed pushes people to chase it
✔ When a stock falls, fear forces people to exit together
Aryan nodded.
“So the crowd decides… not the individual.”
“Exactly,” the Monk said.
“And that is how investors lose money—by borrowing someone else’s thinking.”
⭐ THE CHALK LINE EXPERIMENT
The Monk drew a long chalk line on the ground.
“Aryan, walk normally on this line.”
Aryan walked smoothly.
Then the Monk called 10 villagers.
“Everyone walk on the line at once.”
The line became chaotic. People pushed one another, stumbled, lost balance, and fell.
Aryan laughed.
“Master, nobody can walk properly when everyone rushes together!”
The Monk replied:
“Correct.
When too many people rush in one direction, nobody can think clearly.
This is what happens when investors copy the crowd.”
⭐ THE SUDDEN TURN OF EVENTS
Later that afternoon, a radio announcement came:
“The gold crash rumour was false. Prices remain stable.”
Suddenly, the same crowd that ran to sell started running back to buy.
Aryan shook his head.
“Master… they’re doing the exact opposite of what they did earlier!”
The Monk smiled.
“This is the second part of herd behaviour — reversing direction without thinking.”
⭐ THE STORY OF THE SHEEP AND THE CLIFF
The Monk sat with Aryan under a banyan tree.
“Let me tell you an old story,” he said.
“A shepherd took his sheep to a cliff.
One sheep slipped and fell.
The sheep behind followed.
The next sheep followed too.
Soon the entire herd ran toward the cliff.”
Aryan looked horrified.
“But why? Didn’t they see the danger?”
“No,” the Monk said.
“Sheep don’t think. They follow whoever is in front.”
“And in the stock market,” Aryan said,
“many investors behave exactly like sheep.”
The Monk nodded.
⭐ THE MONK’S GOLDEN RULE: THINK FIRST, ACT LATER
The Monk handed Aryan a card with four questions:
✔ 1. Why am I buying this?
(Not because everyone else is buying)
✔ 2. Do I understand the business?
(If not, avoid it)
✔ 3. Am I acting from fear or fact?
(Emotion leads to mistakes)
✔ 4. Would I make the same decision if nobody else was doing it?
(Independent thinking is true investing)
Aryan repeated the last question softly:
“Would I do this even if nobody else is doing it?”
The Monk smiled.
“That is the question that separates a wise investor from the herd.”
⭐ THE FINAL SCENE – THE CROWD RETURNS
As evening fell, the square was silent again.
No panic.
No rumours.
No running.
Aryan realised how silly the day had been.
“Master,” he said,
“The market doesn’t punish the crowd.
The crowd punishes itself.”
The Monk placed a hand on his shoulder.
“Herd behaviour is natural…
but wisdom is choosing when not to join the herd.”
⭐ ARYAN’S FINAL LESSON
Aryan summarised:
- The crowd acts without thinking
- Rumours control emotions
- Panic spreads faster than facts
- Herd behaviour leads to mistakes
- Independent thinking leads to wealth
The Monk nodded.
“A wise investor does not run with the crowd…
He walks with reason.”