Behavior Finance Theory And Appling In Our Stock Market

Our country stock market contribution since coming into being in 1990 to the economic reform is to cause person to focus attention upon. Stock market is a trade field , business stock basis all is price , being able to say the share price problem is an entire marketplace factor being concerned with most.In two hundred west investment market many years development history, many lines investing in theory, but still being that finance theory gives first place to the standard assuming that owing to effective marketplace has appeared. According to standard finance theory, person always risk aversion person, they observe anticipate that efficacy theory, go ahead with expected basis of reason , carry out a decision-making under uncertainty condition , realize oneself expect the efficacy to maximize. But being , stock market being universally known are capricious , share price is in fluctuation also always. Share price depends on that the investor reaches common view in some cognition and continual readjustment on kind of stock to close a deal on one hand , this is a undulate process of share price; Another aspect share price fluctuation trades by the fact that investor's delivery affects entire stock market's thereby. Investor's cognition , mentality and behavior are bringing the important effect into play as one kind of intermediary agent strength to stock market and share price fluctuation. Though we have no way to calculate stock accurately every day's, even price every month, the when the trend begins , is able to continue for after all from as well as having no way to be informed that share price rises or comes down how longtime, but we are frequent see that, the trend is middle in going up, though knowing this uptrend is unable to continue for down always , people does not get rid of the real value considering stock and target of actual price and departure, but that everyone all thinks that self is incapable is that final fool is then final one stick. Reason why coming down holding stock before the trend is also to insist that as if not having person like this, selling thinking that the information that self has in hand is enough to support self decides. Middle , people are fervent in stock market uptrend run after stock that share price is pushed unceasingly highly , show exploring for risk; Beginning checking in coming down breaking down especially in the trend, stage, people sells stock in self hand at low prices frenziedly , the risk preference behaviour is a thorough risk escapism. But the people's risk preference does not always keep invariable, antagonism (walks right away in inclination having risk escapism to avails having made a profit), have the inclination that risk explores (to be anxious to make good a loss) when facing loss , but. We are from this not bad find that, main theory hypothesis that bond market and standard finance of our country learn deviate from the investor needs to accord with actual investment reason more . Behavior of 1980's new and developing finance theory, finance theory has formed forceful challenge thereupon to the standard since its hypothesis accords with reality more.The main body of a book the theory comparison sets off from standard finance theory and the behavior finance , policy analysing , bringing forward a relevance in our country stock market serviceability suggests by the defect, behavior finance theory analysing the standard finance theory decision-making basis. Defect one chapter middle among them in standard finance theory decision-making basis, what be come into being deviation carries out a summary on the investor first according to self practical experience , subjective probability judging but in self the ability range inner, in reality; And then come to forecast current situation with investment of behavior the probability being dependent on the objective that history data forms excessively according to the investor, stock and a group of portfolio formation carry out demonstration analysis on Shan in our country stock market , the relation by adjoining moment earning ratio infering out, comes to a conclusion with actual result difference, are to invest in behavior disregarding being that subjective probability is still objective probability , all can not guide an investor to be in progress correctly. By discussion to the probability defect, submit the suggestion specifically for the government and the individual investor.