Analysis of the Influence of Psychological Factors on Personal Financial Investment

Jing Yang

2025

Abstract

With the continuous development of the economy, individuals pay more and more attention to financial investment, so the results of investment with different attitudes are also very different. Traditional finance believes that investment should be rational, but the conclusion of behavioural finance is not. This article studies the present from several main factors of behavioural finance, e.g., the kinds of mentality do investors have when investing and methods can be studied to minimize such impacts to maximize profits. In the end, this study did not eliminate the impact of psychological factors on investment and financial management. Instead, by focusing on the two aspects of psychological accounts and risk perception, it was found that risk perception has a close positive correlation with investment decision-making, and emphasized that the sensitivity of individuals to risk perception in the process of investment decision-making is very high. The important thing is not to be overconfident or blindly follow the trend. This study analyses the psychological activities and changes in mentality experienced by investors before making investment decisions, and concludes that such psychological activities will have a significant impact on investors.

Paper Citation

in Harvard Style

Yang J. (2025). Analysis of the Influence of Psychological Factors on Personal Financial Investment. In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML; ISBN 978-989-758-775-7, SciTePress, pages 57-60. DOI: 10.5220/0013832600004719

in Bibtex Style

@conference{iceml25,
author={Jing Yang},
title={Analysis of the Influence of Psychological Factors on Personal Financial Investment},
booktitle={Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML},
year={2025},
pages={57-60},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013832600004719},
isbn={978-989-758-775-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML
TI - Analysis of the Influence of Psychological Factors on Personal Financial Investment
SN - 978-989-758-775-7
AU - Yang J.
PY - 2025
SP - 57
EP - 60
DO - 10.5220/0013832600004719
PB - SciTePress