Study Of The Stock Market, Individual Investors' Behavior

Since the eighties the twentieth century, the rapid rise of behavioral finance theory, the core of modern financial theory of efficient market theory hypothesis (EMH) presented a strong challenge, behavioral finance theory has become the most concern in the field of financial theory of Yan Jiu one of the key. However, behavioral finance research in China has just started, as the finance of a frontier, need to study many problems. Based on behavioral finance theory to the behavior of the Chinese stock market investors to analyze, whether investors or the securities regulatory authorities have important practical significance. Late development of China's securities market, is not perfect, with the Western-developed securities markets are quite different. Immature stock markets in China, under the conditions of the West can not be directly applied to behavioral finance theory to explain and predict the behavior of Chinese investors. Starting from the investors themselves, the actual light of China, analysis of investment behavior of Chinese stock market investors, and psychological characteristics, looking for people with Chinese characteristics, behavioral finance theory is yes feasible. This is such an academic background in the stock market investment decisions of individual investors and investment behavior of psychological research, from the perspective of behavioral finance to examine the stock market investment decisions of individual investors, psychological and behavioral problems, and through psychological experiments to analysis of the investor's investment decision-making psychology and behavior, I hope this study can individual investors in China's securities markets and securities regulators, decision-making help.In this study, we use behavioral finance theory, the stock market through a questionnaire of psychological investment decisions of individual investors, individual investors that there is bounded rationality. On this basis, the use of experimental methods of psychology and survey methods on the stock market bias of individual investors and decision-making behavior of mental tests, and various psychological and behavioral problems were specifically identified. The analysis shows that individual investors in the securities market in the cognitive and behavioral deviations are: overconfidence, loss aversion, hindsight, anchoring effect, fuzzy aversion, regret aversion and disposition effect, was in the way, on the psychological account of the inspection. Finally, put forward a number of behavioral finance based investment advice, regulators should improve the information disclosure system, strengthen the education of individual investors, foster investor protection as priorities of the regulatory philosophy; news media to interpret the information correctly, the news media to moderate; investors need to strengthen their own investment in training, rational treatment of stock market volatility, psychological training a good investment.