Fear and Greed: The Two Emotions That Cost Investors the Most

Fear and greed are the oldest market forces there are — and they remain powerful forces even today.

Fear makes people sell when things get ugly.

Greed makes them buy what’s already expensive.

Both are emotional, not logical.

When you see a headline that says “Markets Plunge!” or “Stocks Soar!” — remember who those stories are written for. They’re designed to get clicks, not help you invest better.

Greed shows up quietly, too. It’s the thought that “maybe I should move everything into this fund that’s been doing great.”

The moment you do that, you’ve usually arrived late.

The antidote to both emotions may be a plan.

If your plan says you’re rebalancing once a year, stick to it.

If your plan says you’re investing monthly, do it whether the market’s red or green.

Fear and greed never go away — you just have to stop giving them control.  A disciplined process can help investors make decisions based on goals, not emotions.