Fear is one of the most powerful emotions that can cause investors to make impulsive decisions, such as panic selling of assets during market declines. This can lead to missed opportunities in subsequent stages of the market recovery. It is important to understand that volatility is an inherent part of the market, and one must be able to keep a cool head in such moments.

Greed, on the other hand, can push investors to take unnecessary risks in pursuit of quick profits. This often leads to investors buying assets at their peak, expecting them to continue to grow, and then facing a sudden decline.

Emotional management techniques include developing a clear investment strategy based on long-term goals and risk profile. When you have a plan that you strictly follow, it becomes easier to ignore short-term market fluctuations. Technical analysis, fundamental research, and regular portfolio evaluation will help you avoid emotional traps.

Investor psychology is not only about controlling your emotions, but also about understanding how they influence your behavior. With the right approach, you will be able to make more rational decisions that will lead you to successful investment results.