The Study Of Individual Investors’ Behaviour Based On The Herd Theory

As a typical kind of venture investment, securities investment has became the first choice for most investors for its higher market average return on investment and lower access threshold. However, securities market in our country resumed comprehensive trading in 1992, for its development experience is relatively short, the market maturity is relatively low. At the same time, individual investors, as the main trading one of the main body of the securities market, there are many irrational trading behavior and damage their own economic interests at the same time, also does not favor the benign operation and development of the securities market in China. In this paper, on the basis of the "bounded rationality" theories of Simon, the individual investors decision-making process on the basis of rational logic and tries to analyze the herd behavior of different assets groups involved in securities investment in rational level. In order to further understand the influence of different degree of net inflow individual investors rational factors, this article also has carried on the income level, risk management consciousness, the source and the feasible degree of this a few factors and behavior rational degree of correlation analysis.Based on the above research purpose, this article through the questionnaire survey method and interview method, the structure for the rational level, as well as the sources of risk management consciousness and the reliability design of the specific file, baofeng road in Wuhan Zhongtai securities business department has carried out investigation and SPSS22.0 software is used to analysis the collecting data entry and analysis.Data analysis shows that under the herd behaviour, retail investors to institutional investors in a rational degree is low and no too big change. This conclusion and specific performance as follows:the more obvious the reputation of the type of herding effect, even though the retail investors and institutional investors risk the risk of pipe generally stronger consciousness, but its overall rational degree are weaker, partial radical on the decision-making behavior. The causes of this phenomenon, boils down to the lower maturation of market as a whole, the lack of risk education and individual investors too speculative these aspects.