Paper Contents
Abstract
This research explores the psychological impact of stock market volatility on retail investors, with a focus on emotional responses such as anxiety, stress, and depression. Using behavioral finance theories like loss aversion, overconfidence, and herd behavior, it analyzes how irrational decision-making during market highs and lows affects investor well-being. Case studies from historical crashes (1929, 2008, 2020) and survey data from Indian investors further reveal a link between financial downturns and mental health crises. The study highlights the need for financial literacy, emotional resilience, and systemic support mechanisms to safeguard mental health in volatile financial environments.
Copyright
Copyright © 2025 Nadiya khan. This is an open access article distributed under the Creative Commons Attribution License.
