NEW YORK ( TheStreet) -- A good friend of mine, an industry veteran, has historically described market ups and downs as the "oscillation between greed and fear", as it applies to investor psychology.Despite the fact that I've given him a lot of ribbing about that term over the years, there is a lot to be said for what it conveys. In a nutshell, when the markets are continually heading higher, investors can become greedy, leading them to pay too much for securities. When fear sets in, and markets fall, investors tend to sell to a level in which securities prices are punished far beyond what they deserve. You can certainly apply that logic to individual stocks, as well.
Investing Between Greed and Fear Over Coffee and Donuts
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.