The Stock Investor Decision-making Behavior Research

The decision-making of stock investment is always one of the core issues that attract the closest attention in the circle of investment theories and practices in Western countries. It features the application of psychology in the field of financial investment.As found out in Chinese and foreign researches, the pessimistic or optimistic attitude adopted by investors toward the quotations of stock market is one of the most important impetuses for the decision-making of stock investment. The psychological attainments and anticipated consensus of investors are the essential conditions of the investment atmosphere of stock market. Positive psychological attainments and anticipated consensus will directly affect the rational tendency of quotations. On the contrary, negative psychological reaction will reduce the desire of people for stock investment.The theoretical assumption of this research is:When people make decisions on investment, the decision-making model is the optimal decision under the restraint of bounded rationality and behavioral bias, but the result of decision-making is not the optimal, bounded-rational or unprincipled satisfaction under the state of rationality, but limited optimum and limited satisfaction. Therefore, the psychological factor of investors exerts an important effect on the decision-making behavior of stock investment. The major contents of this research include:(1) conducting a systematic research into the documents of the researches into the decision-making behaviors of stock investment at home and abroad, thus getting to know the latest development of the researches into investment decision-making conducted by Chinese and foreign scholars; (3) With the psychological variables covered by this model as a reference framework, independently compiling The Questionnaire of the Factors Affecting Stock Investment; (4) With The Questionnaire of the Factors Affecting Stock Investment as a tool, conducting a questionnaire research into the motive, risk awareness, moods, ability of information differentiation and analysis and individual and collective psychological phenomena of stock investment; (5) Exploring the psychological factors and behavioral characteristics that affect the investment decision-making of investors, and exploring the psychological laws of the decision-making of stock investment, thus promoting the model optimization of decision-making behaviors of stock investment.The results show that the behaviors of stock investment are correlated with many psychological factors significantly. Those factors include knowledge, motive of invest, self-confidence, personality, etc. The other factors such as familiarity with sock and age also are related with the behaviors of stock investment. There are significant correlated between four types of treatment also. We conclude the primary factors that affect the behaviors of stock investment. Based on our study and other researches, we advance the model of behaviors of stock investment and the methods of dealing with the cognitive errors in stock investment. The innovation of this study is that we explore the psychological factors in stock investment with psychological viewpoint. But the subjects are mostly come from JiangSu region. In the future, we need explore subjects in other area, and make further research on the psychological mechanism of stock investment.