Fear and greed: the drivers of financial decisions

In markets, risk is rarely in the event itself, but in the emotion that accompanies it. Fear drives you to sell at the worst possible time, while greed tempts you to enter when risks are highest. Between these two emotions, many make decisions that bear no resemblance to their original plans.

Money tests your ability to act under changing emotions more than your ability to predict. When the psychological decision becomes heavier than the financial one, that's when true tests begin.