Indivudual investor decisions in the behavioral finance perspective and an assessment on the 2008 Global Finance Crisis

Traditional finance speaks of a system, which accepts people rationally, acts rationally when making decisions, does not make mistakes, does not repeat the mistake if it makes mistakes is a thought system free of emotions. Traditional finance theory. However, it has always been observed and criticized that people can repeat some of their mistakes that they cannot act rationally. Behavioral finance was developed by making use of branches such as psychology and sociology. In behavioral finance theory, it is assumed that people cannot be rational, have emotions and psychological tendencies, and are affected by such factors. Behavioral finance is basically a theory built on expectation theory. It does not seem possible for people to make decisions by making mathematical calculations like a robot. People are influenced by factors such as income status and the environment in which they live when making decisions in economic life. It seems unlikely that these factors will be ignored and the correct result will be achieved from the established models. In this thesis, the economic and psychological factors that play a role on the investment behavior and investment decisions of individual investors have been investigated by taking into account the 2008 global financial crisis, which started in late 2007 and accelerated until the beginning of 2009. The primary and secondary sources were examined by examining the document among the qualitative research methods, descriptive analysis method was used and interpreted. As a result, it was concluded that individual investors are affected by psychological tendencies when investing.