Markets don’t move only because of numbers. They move because people react emotionally — often in predictable ways.
Fear
Fear shows up when prices fall.
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People worry losses will get worse
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They rush to sell to “stop the pain”
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This often happens after prices already dropped
Greed
Greed shows up when prices rise.
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People fear missing out
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They buy because “everyone else is making money”
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This often happens after prices already ran up
Why this matters:
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Fear pushes people to sell low
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Greed pushes people to buy high
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Both work against long-term results
What helps counter it:
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A plan decided before emotions kick in
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Long-term thinking instead of short-term reactions
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Understanding that ups and downs are normal
Learning to manage greed and fear is one of the most valuable skills a beginner can develop.