Tip: Buy when the market is fearful

Fear and greed are two emotions that amplify swings in a security's price. Investors who give in to fear and panic during a sell-off may be willing to sell a security for an undervalued price. Investors who give in to greed may hold onto a security even after it has become overvalued. 

Investors should buy when the market is fearful and sell when the market is greedy.