Mr. Market

The stock market behaves like an emotional business partner who knocks on your door every single day. Benjamin Graham, the father of value investing, called this imaginary person Mr. Market. Every morning, he offers to buy your share of a company or sell you his. Sometimes his price makes sense, but most of the time he is driven by pure panic or wild excitement. Do not let him confuse you. A wise investor figures out the real value of a business on their own instead of listening to the noise. You should only trade when his mood swings make the price ridiculously cheap or foolishly expensive.