ANALYSING THE IMPACT OF EMOTIONS: FEAR AND GREED ON FINANCIAL MARKETS

ANALYSING THE IMPACT OF EMOTIONS: FEAR AND GREED ON FINANCIAL MARKETS

Niharika Y

Student

MBA

PES University, Bangalore, India

Under The Guidance of Prof. Arvind L N

ABSTRACT

In this research, a brief study on human emotions is conducted, focusing on fear and greed, which impact financial markets. In humans, emotions are considered a crucial aspect in shaping human behavior. Human behavior is interconnected with investing activities in financial markets. This study mainly focuses on these aspects of things like fear and greed that have an impact on the thinking and behavior of all investors, which impacts financial markets. In this research, we have collected qualitative data and information in order to get a clear view of the human physiological aspects of the investing mindset of all investors and to assess recent market trends in the money market. This study looks at what generates fear and how it manifests itself, as well as what inspires greed and how it manifests itself. We've also discussed the two indexes that aid with fear and greed in financial markets. This paper provides an overview of the function of fear and greed in market psychology, how Fear and greed have an impact on markets, the traders profit from the market's fear and greed and also the impact of fear and greed on market investor behavior.

This research paper's findings give an overview of how the fear and greed patterns of investors have an impact on financial markets. This can be a good help for all individuals who are ready to invest their money and helps them make more informed and helpful decisions.

KEY WORDS

Financial markets, human behavior, human emotions, greed, fear