The Phenomenon of Human Emotions: Reasons & it’s after Effects in Stock Market Perspective

Humans are considered to be cogent but are we taking rational decisions in our life always? There may be some yes, but it goes unheard in a loud no. If we had taken rational decisions all the time, today's world (including stock markets) would have been much different. If all the stock market participants are rational, both the risk and reward will be significantly minor than today and scientific/rational theories like Capital Asset Pricing Model (CAPM), Efficient Market Hypothesis, etc., would not have been overturned in practice. So, it clearly shows that most of the times, not all market participants are rational and they are ruled by their emotions, in particular, the evil emotional twins "Greed" and "Fear". This study explores to know more about how emotions rule stock markets.