Herd Behavior Study Of Investors In Metal Futures Market

In recent years, domestic and foreign scholars who study behavioral finance more and more, and more attention to this area.Behavioral finance is from psychology to study the level of investment behavior of investors, it negates the traditional economic theory of rational hypotheses people, more in line with the actual situation of the market. It is from the psychological factor of individual behavior and the reason of this behavior and other reasons to study and predict the development of financial markets.This article is from a branch of behavioral finance theory-herd behavior to study. At present, the domestic research on herd behavior are more concentrated on the areas of securities and funds, commodity futures market is still relatively small study. So this article is basing on an important China’s futures market - metals futures market as an object to study.This paper is verified for the existence of herd behavior which is in the metal futures market during the sample period and compares the herd behavior in metal futures market during the sample period and the financial crisis period. The results show the impact of financial crisis on China’s metals futures market herd behavior is not serious. In addition, we study the markets herd behavior in rise and fall period, and compares the extent of herd behavior during the two period,the results show a similar degree of herd behavior during the two stage.Finally, this paper analyzes the causes of herd behavior in metals futures market.