Microcosmic Mechanism of the Influence of Investor's Psychology and Behavior on Stock Price Volatility

BF (Behavioral Finance) is a branch of behavioral economics, mainly studies investor's cognition, sentiment, attitude, and other psychological features, as well as inefficiency of securities market as a result of these psychological factors. Since BF came into the world, BF has shown wide development prospect. The paper synoptically introduced many achievements of BF, at the same time, analyzed the limitations of BF, finally, combing with the China's securities market, the paper put forward some research direction and corresponding research method, which would provide new thoughts to better explain the complex characteristics of stock market.