Aspects and approaches of behavioral finance theories

Philosophy of neoclassical economics based on rational behavior of individuals and firms in the economy. In the meantime, if something is incompatible with the principle of bias or bias as it is remembered. Behavioral finance theory is commonly interpretedas the application of psychology in financial knowledge, Challenged the fundamental tenets of neoclassical economics and human psychological phenomena in the market and try to identify the individual. The purpose of this article is to review aspects and approaches in the field of behavioral finance and human factors affecting the understanding and prediction of financial markets. Conclusions of studies and evidences suggest that the fact that Behavioral finance theory to explain an important role in determining the behavior and decisions of investors in the market and its effects on the behavior of financial markets.