Karma is one of the most important concepts in Buddhism. Karma is an imprint in one's Mind. When one performs a good deed out of good intentions, the good intentions come from the Mind. Having done that good deed, the residues of these intentions stay in one's Mind as "imprints", and that is "good karma". The opposite goes for evil deeds (or what the Buddha would call "unwholesome deeds") done out of greed, hatred etc.
A person's karma affects a person in 2 ways. The first is his disposition. If a person is an angry one, performing many deeds with anger, his mind will be imprinted with experiences and intentions of anger. Because of this imprint, in a similar situation, he would be more likely to feel angry. In a sense, the imprint creates and reinforces a sort of mental habit that causes a person's mind to react in a certain pre-disposed way.
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