CHAPTER 10Panic Is Your Best Friend
Be fearful when others are greedy and greedy only whenothers are fearful.
—WARREN BUFFETT
The process of understanding market behavior may seem a bit overwhelming, but in reality, it’s not that bad when you know how to simplify it. You keep the basic information simple and don’t make the more difficult aspect any harder than it has to be. Market tendencies and why people react a certain way with their finances has been studied for years. In psychology, we can predict and understand behavior based on childhood, social class, family size, and so on, but in the market, such an analysis involves much more than understanding the simple actions of an individual person. You are trying to understand the tendencies ...
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