The investors can be emotional and you can profit from that. CNN’s Fear & Greed index reveals when the traders are too bullish or too bearish.
When stocks fall the index swings towards fear, when stocks rise the index swings towards greed.
Lower number signals fear and higher number indicate greed.
Extreme fear could be a buying opportunity. When investors get too greedy that means the stocks are due for a dip.
As Warren Buffett famously said,
“Be fearful when others are greedy and greedy when others are fearful”
Read more: [CNN Fear & Greed Index]