Study On China’s Stock Market Investors Over Trading

The study of behavioral finance and financial problems from the psychological point of view,it is thought that people are not rational, one of the many psychological factors for the financialmarket caused no small impact. Behavior finance learns to think, in financial markets are notperfectly rational, but manifestations of limited rationality. So the behavioral finance it can morereasonably and accurately, to study and explain the financial market on the various phenomena.China’s stock market because of the development time is not long enough, a variety of relatedpolicy, system is not perfect enough, and the stock market of our country medium and smallinvestors, active and participate in the stock market development for many years, but because oftheir own subjective reason and objective reason the stock market environment, have failed toshare in the stock market growth should be vested interest.This paper is based on the medium and small investors excessive trading behavior as theresearch purpose, first described in the stock market of our country ’s basic information andinvestor behavior characteristics, followed by literature research, questionnaire etc, reach ourcountry stock market and investors generally has a rational, highly speculative, excessive tradingfeatures.The results of this study will show, in the stock market of our country medium and smallinvestors have excessive trading psychology, both overconfidence, speculation, Internettransactions and other subjective reason, also have more information disclosure of stock marketbehind-the-scenes plotting, opaque wait for objective reason. The medium and small investors havea correct attitude, cultivate the concept of rational investment, change the irrational investmentbehavior in the stock market, to obtain the relative profit. This paper also suggested that China’sstock market regulator, should proceed in policy making, information disclosure and other aspects,to respect and truly protect minority investors’ legal rights, so as to promote China’s stock markethealth, stability and development.