Analysis of Retail Investors' Trading Psychological Characteristics Based on Big Data

Abstract

In the increasingly complex financial market, retail investors, as a crucial component of the market, are influenced by factors such as the macroeconomic environment, market trends, and individual psychological traits. Psychological characteristics like greed, fear, herd behavior, and overconfidence in retail investors' decision-making processes can lead to irrational trading behavior, thereby affecting investment performance and market stability. With the rapid development of big data technology, new opportunities have emerged for in-depth research on retail investors' trading psychology. This paper first analyzes the research background and importance of studying retail investors' trading psychological characteristics, then elaborates on the specific manifestations of different psychological traits, revealing how these traits influence retail investors' strategies. The aim is to help retail investors enhance their rationality and performance, thereby promoting the healthy development of the financial market.