One of my favorite Warren Buffett quotes is, “Be fearful when others are greedy and greedy when others are fearful.” It's one of the mantras I live by and it has helped me be very successful while investing – I bought some of my biggest winners during the peak of the 2007 financial crisis.
The goal should be to buy when others are pessimistically selling and sell when others are greedily buying.
In the wonderland of investment, courage is the supreme virtue backed by adequate knowledge and sound judgment. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.
It can be hard to do, but put your emotions aside and do your research.
If you want to learn more, check out these resources:
- What To Do When Fear Enters The Stock Market
- Five Lessons From A New Investor
- Preparing For A Stock Market Correction
Make sure that you check out the rest of our Daily Investing Tips.