A young professional once told me, “Sir, whenever the market turns red, my heart beats faster. And when it turns green, I feel I should invest more immediately.”
He wasn’t talking about big losses or gains — just the colours on his mobile screen.
That simple statement perfectly captures how strongly red and green control our financial emotions.
In the world of money and markets, these two colours dominate every newspaper, TV channel, and app.
The History behind the Colours:
Though they appear like any normal colour, but their impact is powerful.
Historically, Red has been linked with danger, warning, and loss — like traffic stop signals or alarm signs. It naturally creates fear and urgency.
Green represents nature, growth, safety, and prosperity — a feeling of comfort and progress.
The Psychological Impact of Colours:
When markets adopted these colours, it was no coincidence.
Prices falling in red immediately feel painful.
Prices rising in green instantly feel exciting.
Our brain reacts to colours faster than to numbers.
Before we understand how much money is gained or lost, the colour already tells us how to feel.
Red pushes us toward fear — “Should I exit now?”
Green pushes us toward greed — “I must invest more before it goes higher!”
Role of Media:
Media further amplifies this effect.
Bright red screens are shown during falls with words like “crash” and “panic.”
Strong green visuals appear during rallies with headlines like “don’t miss out.”
These colours don’t just report news — they influence emotions.
Impact on Investors
This emotional reaction is where most investors go wrong.
They buy during excitement and sell during fear.
Ironically, wealth is usually built by staying calm in red times and being careful in green times.
So how should one handle these colour signals:
First, understand that colours show short-term movement, not long-term value.
Second, keep your focus on life goals — education, home, retirement — not daily price changes.
Third, avoid constant checking and sensational news.
Most importantly, follow a disciplined plan and seek professional guidance to stay emotionally balanced.
Markets will always change colours — sometimes green, sometimes red.
But your financial future should never change direction because of a screen colour.
Those who master their emotions build wealth.
Those who follow colours chase it.
Don’t invest by colour (market news). Invest by clarity, patience, and purpose.
The above post is for investor education only. I/we act as an AMFI‑registered Mutual Fund Distributor and do not provide investment advice. This blog should not be treated as investment advice or a recommendation.
Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.