The Effect of Feeling in Decision Making of Investors

This paper surveys the research about the influence of investor feelings on stock pricing and also provides a theoretical basis that help understand the relevant findings of this area. The theoretical basis is developed with reference to research in the fields of economic psychology and decision making. Different researches in understanding how feelings affect the decision-making of individuals, especially under conditions of risk and uncertainty have been done that study in this paper. The psychology theoretical basis is applied to analyze the existing research on investor feelings. This research examines that whether variations in feelings that are widely experienced by people influence investor decision making and consequently lead to predictable patterns in stock pricing. Domestic and foreign research findings show that feeling of investors at time of buy and sell of stock can effect on decision making logic.