Market psychology refers to the emotions, mindset, and behavior of traders and investors both individually and collectively and how these influence decisions in the market. It is all about how fear, greed, hope, regret, and confidence affect buying and selling.
Why Is Psychology So Important in Trading/Investing?
Because the market is moved not just by charts or news — but by people reacting to them. Even if you have the best strategy in the world, if you panic during a loss or get greedy after a win, you might still lose.
Emotion What It Causes Result
Greed Holding for too long, chasing rallies Losses after tops
Fear Selling too early, avoiding good setups Missed profits
FOMO Jumping into trades late Buying tops
Hope Holding losing trades too long Bigger losses
Regret Revenge trading after a loss Emotional damage
Examples of Psychology in Action
A stock crashes. Everyone panics and sells — even if fundamentals are still strong. That’s fear. A stock keeps rising. People rush to buy without research — “This stock will make me rich!” That’s greed/FOMO. You sell for a small loss, then it shoots up. You regret it, and try to chase the next stock without thinking. That’s revenge/regret.
How to Master Market Psychology
Have a Trading Plan – Follow logic, not emotion. Use Stop-Losses – Manage risk like a pro. Stay Detached – It’s not personal, it’s just price. Journal Your Trades – Understand why you acted a certain way. Take Breaks – Clear mind = better trades.

Final Answer is:
Your greed in share market will ruin your psychology, so you need to work on your greed. When you will enter in share market please control your greed because share market will not give you crores of rupees in one month or a year. Share Market is a game of patience and lastly Education is must.