Humans’ reactions are contaminated with their cognitive biases, greed, fear, and survival instinct. However, capital market success requires precisely the opposite behavior of what your intuition is suggesting.

Fear-of-missing-out is more powerful than fear of losing.

Greed pulls people in, and fear pushes them out.

Whatever anybody does or does not do is based on either greed or fear.

In the investment world, greed and fear are the lifeblood. Without these, there would be no economy, no capital market, and no transaction.

Investments are not a lottery; if it feels like the lottery, stay away from it.

The combination of our natural desire to be better than our peers, our faulty assumption of dodging risk, and our flawed belief of having better chances than others, pushes us into excessive greed territory. We take more significant and sometimes fatal risks.

Greed and fear are both good and healthy for an investor and capital markets as a whole. Emotions are like fire, beneficial if controlled, destructive if wild.

Greed and fear are in our DNA. We can’t get rid of them, but we can learn how to keep them in check.