Behavioral financeis the study of sychologicalbias in the individual investor’s investment decision,and it can also improve the investment behavior.This paper first describes the behavior of common investor psychological bias in finance and then focuses on how the diminishingutility affect the investment decision.I also used Texas Hod’em experiment and the stock index futures market traders’ performance to prove that different loss or profit position will change the investment decisions of investors.At last, the paper gives some advices to the individual investors to improve their trading system. |