Instant Mood And Stock Market Volatility

In 2014,China's economic environment has undergone tremendous changes,and various financial reform measures have been introduced.It is called the first year of China's financial reform.However,from the perspective of macro data,the overall economic growth rate is in the low range of nearly a decade,and the stock market has shown an abnormally prosperous trend.Since 2014,China's stock market has shown a trend from bear to bull.After the end of the nearly seven-year decline,the stock market began to rise and fall.In 2014,the Shanghai Composite Index rose by 52.87%,since 2010.According to Wind's statistics,in 2014,A-share stocks rose 89% of the total.According to the report of China's listed company market value management research center,the total market value of A-shares in 2014 exceeded the record high in 2007.Entering the market in 2015,the market is showing an unprecedented fierce situation.Under the stimulation of many favorable policies and huge leveraged funds entering the market,the stock market has leaped forward and created a historical high of 5178.However,the market index fell sharply in June,and the market fluctuated sharply.However,from a fundamental point of view,the economic growth rate has dropped,various economic indicators have been in the low-speed range for the past five years,the international trade environment has entered the freezing period,and the import and export has been frustrated.The overall market does not have a basis for the formation of a bull market.Considering the special background of China's stock market with absolute advantage of individual investors,taking investors' instant emotion as a proxy variable,combining behavioral finance and social psychology research theory,analyze the market turnover,turnover rate,new account number,average position holding,new account number and the consistent view of brokers and other indicators,and analyze the behavior of market investors.Using the rooted method,the stock market as a case study in 2014-2015 Target,explore the formation mechanism of stock market disasters,and study the relationship between investors' instant emotions and stock market volatility.Through case study,it is found that Chinese investors are easily influenced by immediate emotions and form a psychological group.Positive feedback mechanism amplifies the optimism or pessimism and plays a role in helping the market to rise and fall.Then based on the policy,public opinion,market indicators and individual investors and other aspects of policy recommendations.