1 Overconfidence: Overestimate your own judgment and be overconfident. Psychological research has found that when people claim to be 90% sure of something, the probability of success is only about 70%.

2. Aversion to losses: Pursuing advantages and avoiding disadvantages is one of the main motives of human behavior. In economic activities, people choose to "pursue advantages" and "pursue advantages and avoid disadvantages" by considering how to avoid losses first, and then gain benefits. Markowitz first noticed this kind of human behavior, and later empirical research further showed that the balance of people's inner interests in financial transactions was unbalanced, and the weight given to "avoiding harm" was twice that of "seeking benefits".

③ Pursuing fashion and conformity psychology: The position consumption theory tells us that people's pursuit of relative economic status is compared with others in space. It can be seen that the communication between people has a great influence on everyone's decision-making behavior, and the pursuit of fashion and conformity psychology is one of the most prominent characteristics. Therefore, in the field of financial investment, financial economists have begun to regard this feature as an important investment decision-making factor.

(4) Regret and caution: This kind of psychological state generally exists in people's economic activities. Even if the decision-making results are the same, if a certain decision-making method can reduce investors' regrets, it is still superior to other decision-making methods for investors.