Warren Buffett warns that sophisticated investors have an edge over novices in the stock market. Those with better information and emotional control tend to profit from market inefficiencies. Market rewards preparation and punishes naivety, often leading inexperienced investors to buy high and sell low. Buffett’s advice is to trade less frequently and think more clearly to gain an edge.

Read more at Yahoo Finance: Warren Buffett Warns ‘The Sophisticated Have an Edge Over the Innocents’ In Investing, But Reveals How Even Retail Can Beat Wall Street