Greed and fear are two emotions that determine one’s financial well being. We all desire more, which in investing parlance means aiming for maximum gains for your portfolio. Hence it comes as little surprise that when the stock market is going up we continue to buy more even as the valuations are rising, expecting further gains. Unfortunately, no asset class can move in a straight line, either upwards or downwards for longer periods. Not to mention the inherent volatility that equity as an asset class brings. And when the market turns, you are left in a lurch, considering that the value of your portfolio starts sliding. Just like you get overwhelmed with greed, the same happens with fear. When the markets suffer a loss, you tend to sell out assuming a further down slide and are probably unlikely to invest again. Both these emotions i.e. greed and fear, get the better of you. Hence, it is not only imperative to strike the right balance between greed and fear; don’t buy in greed and don’t sell in fear.