 In this section I will be explaining the very interesting concept of behavioral finance. Behavioral finance is a subfield of behavioral economics and the entire concept of behavioral economics or behavioral finance depends upon this principle that the human beings when they take any decisions they get influenced by different types of psychological factors and biases. So if we are specifically talking about financial decision making by the investors or financial practitioners then we narrow down the scope of behavioral economics to behavioral finance. So if we just explain the procedure of financial decision making that how it influences psychological effects or biases then it means that we are talking about behavioral finance. In behavioral finance we take different types of influences that are caused by biases. There are a number of different types of market abnormalities or anomalies that happen because the entire traditional model of financial economics that we have discussed or the theories that we have discussed, we put a basic assumption in them that the investors who are the participants of the financial market, who are experts, consultants and advisors or people sitting in any capacity that make all rational decision making but in reality when you see it in the real world then there are a lot of biases that a person is influenced by different things, psychological factors are influenced by their decisions where they are making decisions about investment. So behavioral finance helps us in understanding what are the various types of psychological factors that can influence the financial decision making process and what are the different types of biases that can result in different types of anomalies or abnormalities which we see happening in the financial sector.