[T]he risk for any investor is surrendering to his emotions. Investors are either blinded by greed at one extreme or are enveloped in fear at another extreme. The clueless investor is like a ship floating in a dark sea - with no lights, no navigation maps, and no stars to guide him. The poor fool will float with the tide and ride the waves of greed and fear. His survival is at risk. His only hope is to be rescued by a greater fool.
A knowledgeable investor makes sure he has a map, a torch, some idea of the stars to guide him when the lights go out, and an anchor to hold on to in rough seas. When the markets fall for some irrational reason and fear grips the markets, the disciplined investor will buy into this falling market. When markets rise for silly reasons and irrationally and greed set in, the disciplined investor will sell.