Factors affecting investors'investment decisions from behavioral finance perspective

In this research, it is aimed to examine the factors affecting investment decisions of stock investors from behavioral finance perspective. By comparing Simon's "bounded rational" notion with the controversial state of the "rational man" hypothesis that classical teachings reveal, the factors influencing investor decisions have been tried to be explained by the behavioral finance perspective. Research is a descriptive study from the type of screening. In the first part of the three-part research, the literature and the concepts related to the subjects are examined. In the second part, the psychological phenomenon and behavioral tendencies are investigated. In the third and the last part, literature on behavioral finance theories are included. Since the days when Adam Smith published the book The Wealth of Nations in 1776, and since the beginning of his earning of a certain sense of economic identity, although man and his definition of this knowledge in terms of this science had questioned periodically, it is evident that these inquiries have gained a strong momentum with the emergence of behavioral economics and the point of view it brings to the concept of 'homo economicus'. In this context, with the contributions of scientists which are Simon, Katona, Leibenstein, Kahneman, Camerer et, it can be said that a connection between economics and psychology is established. Kahneman and Tversky's Prospect Theory has revealed that individuals' investment decisions or economic decision-making processes in terms of empirical tests they have done and findings from these tests, more realistic and inclusive than The Efficient Market Hypothesis and The Expected Utility Theory. As a result of the research, it can be said that the individuals are influenced by their own psychological and mental evaluation mechanisms while making decisions that will constitute an economic response. However, it is also important for consumers to understand their psychological prejudices and what kind of mental processes they can make when investing or investing in several pre-investment evaluations. It can be said that investors who are aware of the traps of their own mental prejudices will find a chance of good judgment before their decisions, and the rate of the success of the decisions they have made will be increased as a result of that judgement