Effect of investors psychology on the stability of Vietnam’s financial market

Abstract

    Psychology's investors have dominant influence on market stability, especially onfinancial market. The unpredicted variationof psychological factors not only affects financialmarket but it has also been a driver cause of market chaotics, leading to the difficultiesofconducting macroeconomics policies. In Vietnam, the impact of psychological factor onfinancial market has been verysophisticated,creating negative consequences, threateningmacro and financial stability. This requires a thorough study of seeking the influencesofpsychology's investors on the Vietnamese financial market. This paper presents some featuresof psychology's investors and theirs impacton the stability of Vietnames financial market,then proposes policy implications to stabilize psychology's investors in the future.