🧠 The Psychology of Investing: How Fear & Greed Can Make or Break Your Portfolio

Step 1: Understand Fear & Greed

• Fear: When markets fall, investors panic and sell at a loss.

• Greed: In bull runs, investors chase quick profits and buy overpriced stocks.
  👉 Both lead to poor long-term returns.

Step 2: Watch Out for Emotional Biases

Common traps that hurt investors:

• Loss Aversion – Holding losing stocks too long.

• Herd Mentality – Following the crowd without research.

• Overconfidence – Thinking you can never be wrong.

Step 3: Control Your Emotions

Simple strategies to stay calm:

1. Stick to a Plan – Decide goals and timelines in advance.

2. Invest via SIPs – Automation removes guesswork.

3. Diversify Portfolio – Spread risk to reduce stress.

4. Avoid Overchecking Markets – Too much tracking triggers panic.

Conclusion

Your biggest enemy in investing is not the market — it’s your own emotions.
Control fear and greed, and you’ll stay on track for long-term wealth creation.

👉 Remember: Markets reward patience and discipline, not panic and greed.