Keywords
Abstract
Different people have different choices about the economic environment. People accumulate their own experience and knowledge rationally, and then make choices that they think are beneficial to them, which leads to the occurrence of various behavior patterns. In the process of selection, people's knowledge will change with time and become their own knowledge. Most financial theories are based on a rational economic individual, assuming that investors are rational, and that investors make decisions from the same source of information. The inevitable result of this theory is that a unified view of the market will be discovered immediately. But in fact, the real market produces all kinds of ideas every moment. It can be concluded that investors, especially retail investors, have some misunderstandings about market psychology and its sources. Therefore, the purpose of this paper is to explore the causes of investors' psychological errors and the impact of psychological errors on investors.