Many still believe that the market at certain times reflects rationality but equally, there are emotions, psychology and even the irrationality of the participants coming into play and this paper attempts to focus on the interaction of the investors’ fear, optimism, greed and pessimism, which are sentiments that affect stock markets. From the perspective of behavioural finance, this study seeks to understand how psychological irregularities, such as herding or loss aversion or that of overconfidence cause strange phenomena in the stock market such as bubble formation or market crashes or volatility. Some investors use social media or tools like VIX which provide sentiment analysis and volunteers emotion and trends, to explain emotional involvement with the market. Other LA Rocco demonstrates that the economic climate more accurately reflects market trends than it corresponds with emotions, by using real life examples of all well-known bubbles including the dot-com bubble and the 2008 real estate market crash. The rest of the themes demonstrate trends to indicate the emotions people use such as COVID-19 times and how this contagion is a factor for real price determination. These results have implications for investors as they explain the potential strategies for investors to manage emotions as well as point to the AI tools that would provide such opportunities. All in all, this study calls for greater appreciation of the interpenetration of psychological factors and economic factors when analysing modern financial markets dynamics.