when everybody already knows everybody

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I have been in some situations where it seems that everybody already knows everybody & I don't know how to interact with others. Has anybody been in that situation & if so how did you handle it?

My wife is involved in a local "new-comers" group for people who have just moved to the area. Anyway, there was a big get together and I knew no one while it appeared everyone else was familiar with everyone.

I just sat on the couch and looked around only speaking when spoken to--probably not the most appropriate thing to do.

I think that is probably the best thing to do since you can't say the wrong thing & that seems to work for me when I can just go home but not when I can't (like staying at school away from home)