Warren Buffett is considered one of the most successful investors in the world. And really, I don’t blame those who cling to his every last word when it comes to trading advice.
I may not agree with Warren on everything, but it’s easy to see how he reached his status as the third wealthiest man in the world. He’s quoted as saying:
“Be fearful when others are greedy and greedy when others are fearful.”
When you think about it, it makes sense – fear and greed are the two most dominant emotions that drive the market.
When making money, people are greedy. When losing money, people are fearful.
It’s natural – but allowing fear and greed to drive trading decisions can be the kiss of death.
There is a way, however, to turn typical fear and greed into huge profits.