Research On College Students’ Investment Deviation Based On Behavior Finance

Traditional finance in to under the premise of rational people hypothesis developed many of the classic theory, they typically assume that: people are rational, market information to full recognition, so as to guide investment decisions, and achieve utility maximization.However, American economists and psychologists Daniel Kahneman(1976) research shows that people in decision making exist all the cognitive biases, such as the representation, and the anchoring and adjustment, they will lead to some systematic errors, which shows that rational people hypothesis is sometimes difficult to set up.And since the eighties of the 20 th century, as more and more of the stock market anomalies are found, such as contrarian and momentum effect, scale effect, January effect, long-term vision in these market widespread that market is not effective, the cornerstone theory of traditional finance is not strong.Then the behavior finance began to develop rapidly, behavioral finance into the finance of the people’s psychological factors, behavioral science, decision science, study irrational or limited rational individuals how to make economic decisions.The development of China’s securities market is not perfect, highly speculative and high turnover and frequent violent waves,Investors lack of experience, it is easy to be affected by a variety of cognitive and psychological bias, and lead to investment decision-making errors.Therefore, investors may show the deviation of the study and find the law, you can effectively circumvent these deviations, in order to improve the rate of return on investment.In this paper, investors of Chinese college students as the research object, by means of questionnaire to test this group if there is cognitive deviation and psychology and behavior, draw the following conclusions:College investors there is a representative heuristic bias, anchoring and adjustment of deviation and framing dependence bias, also showed obvious emotional heuristic bias in the group investment decision are susceptible to emotional impact.Secondly, they also have a psychological bias and preference, but it is different with the general public, they didnot show a tendency to be overconfident. Instead, they on their level of investment feel a certain degree of confidence and inferiority.Student investors showed obvious hindsight bias, loss aversion, with only slight preference for familiar, have confirmed the deviation tendency.Furthermore, students investors have the disposition effect in trading stocks, but their herd behavior is not obvious.Finally, based on the test results, this paper puts forward the investment strategy should be adopted to improve the accuracy of the investment decision-making, how to avoid or reduce the psychological and behavioral deviation.