不同的策略、市场崩溃的形成和市场泡沫都是由与行为经济学相关的心理轨迹所引起的。这不仅旨在取代其他的解释，而且还考虑到泡沫行为的心理根源。正在试图考虑关于决策心理因素的争论。有了这些心理因素，表征市场情绪的极端波动就可以产生，这就导致了泡沫的破裂和形成。行为金融学和其他金融理论。
投资者的行为和态度对市场上的股票表现产生了显著的影响。当投资者情绪高涨时，就会有更多的普通股发行。当情绪低落时，供给量就会超过对股市表现不佳的需求。在这种情况下，股票的价格会上涨，而定价偏低，因为发行者有优势。市场上的交易受到投资者意见的影响，这些观点导致股市崩盘和泡沫。投资者关注当下，忽视未来。其后果是由于未来价格的上涨而导致的崩溃和泡沫，当股票的价格达到其临界值时，股票的价格就开始下跌。在大多数情况下，企业家和经理因为他们的信心而过度投资于市场(Malliaris, 2005)。与市场上其他参与者相比，在不同领域取得成功的参与者更有信心。他们对自己的知识和技能变得更加自信。然而，人们发现，在市场上投资较多的投资者获得了更多的经验。那些在金融市场拥有更大经验的投资者过于自信。行为金融分析依赖于投资者对市场的过度自信，对股市产生重大影响。管理者认为他们的成功是基于他们的能力，他们高估了自己的能力。
The different tactics, the formulation of the market crashes and the market bubbles are drawn by the psychological trails that are related to the behavioural economics. This not only aims to the supplant others explanation but also to consider the psychological origins of the bubble behaviour. The attempt is being made for considering the argument regarding the decision making psychological factors. With these psychological factors, the characterization with indicating the extreme fluctuations in the market sentiment can be made and this leads to the collapse and the formation of the bubbles. Behavioural finance and other financial theories.
The behaviour and attitude of the investors impose significant impact on the performances of the stocks in the market. When the sentiment of the investors is high, then there is a greater issuance of common stock.When the sentiments are low, then the supply exceeds the demand that results to the underperformance of the stock market. In this situation, the price of the stocks increases and under-pricing decreases because the issuers take the advantage. The trades in the market are affected by the opinions of the investors which lead to crashes and bubbles. The investors in the market focus on the present and neglect the future. The consequences are crashes and bubbles due to the increase in the prices in future, and when the price of the stock reaches its critical value, and then the price of the stock starts falling. In most cases, entrepreneurs and managers overinvest into the market because of their confidence (Malliaris, 2005). The participants in the market who have attained success in different fields are more confident in comparison to other participants in the market. They become more confident in their knowledge and skills. However, it has been found that the investors who invest more in the market gain more experience. The investors who are having greater experiences in the financial market are overconfident. The behavioural finance analysis relies on the overconfidence of the investors in the market imposing a significant impact on the stock market. Managers believe that their success is based on their abilities and they overestimate their capabilities.
