Be Afraid when All are Greedy. Be Greedy when all are afraid

In a stock marker there will be a bull run and a bear run.

In the Bull run. the market mood is always for buying. in such a situation one should stay away and be very selective in buying stocks. In a Bull run, there is buying frenzy.

in the Bear run. the market mood is for selling. in this situation one should start to accumulate. In a Bear run, there is selling frenzy.

Thus, Be Afraid when All are greedy. Be Greedy when all are afraid

What is a folly in the stock market? Folly happens when everyone jumps the gun and put money in a rising market, ignoring alarming valuations. It's the case of bigger fool's theory, where everyone buys to sell at higher level and the same applies on the downside as well. if you do this you are likely to lose money.