Investor behaviour in İstanbul Stock Exchange (ISE) and example of an application

The bulk of the theory of economics and finance is based on the basis of that individuals are rational and consider all available informations during deciding process. In this context, a lot of economics and finance theories were developed and models were produced over the years. However, a considerable amount of researches has showed that individuals frequently do not behave rational and accordingly financial models do not go together with market in many cases. At this point, behavioural finance, by improving, has filled this gap and dealed with reasons and results of that people do not behave rational and affects of these reasons and results on financial decides. An assumption of behavioural finance is that investors take care not only risk and return while they are deciding investments, but also other variables. Besides, behavioural finance assumes that decisions taken are not that maximize the benefit, but are that satisfy decision maker at the best.It is thought that behavioural finance, which has made progress in recent years, would maintain its importance in future periods as well. Because, achievement in the financial markets in which people have the main role will be able to be possible not by being in struggle for stereotyping the human behaviours, but by understanding these behaviours and developing concerned models.