A Comprehensive Research On Investor Psychology And Analysis Of Investor Psychology In Invest Bubble

The traditional financial theories make financial investment as a dynamic equilibrium process. Traditional financial theories including MPT(1952), CAPM(1964), EMH(1970), OPT(1973). These theories are basing on the EMH, whiles EMH become the core thesis of financial theories in this 30 years.Because the phenomenon that Allais paradox, the puzzle of closed-end-fund, value and prices deviate is coming out multifariously, the traditional financial theories and the financial models can't explain clearly. People suspect the efficient markets theory and the traditional financial theories. Many theories and hypothesis try to modify them. But the most challenge is Behavior Finance theories.This paper bases on the Behavior Finance theories and makes sample check whether Behavior Finance theories are applicable to China. Finds out the mental biases of China investors arouse the behavior biases on the security markets and Turn of Year Effect on Stock Market Prices.The investors will affect the financial markets. They arouse the Investor Bubble. This paper try to give the definition of Bubble and Bubble Economy by analyses the intrinsic quality of Bubble. And analyses The Positive Feedback Trading Tactics to explain how Herd Behavior influence the Invest Bubble.Finally, this paper will give some suggestions about how to control the Invest Bubble.