Behavioral finance" is a branch of behavioral economics. It contends that humans are not nearly as rational when making financial decisions like investing as traditional financial theory would have us believe. Behavioral finance has some intriguing explanations and descriptions for investors who are interested in learning how emotions and biases affect stock prices. In other words, it is the study of psychological influences on investors and financial markets is known as behavioral finance. Identifying and understanding market inefficiency and distorted prices are at the heart of behavioral finance. It demonstrates that humans and financial markets are not always rational and that their decisions are frequently erroneous through experiments and research. Behavioral finance gives explanations and answers to the question of how emotions and biases affect stock values. "To suggest that financial health influences emotional and physical health, and vice versa, is an understatement. It just occurs in a circular manner "explained Dr. Carolyn McClanahan, the founder and director of financial planning at Life Planning Partners. "People release catecholamine-related substances when they are under financial stress. People have probably heard of substances like epinephrine and similar substances that can set your entire body on fire. Thus, that has an impact on both your mental wellness and your thinking capacity. It has an impact on your physical health, exhausts you, keeps you up at night, and makes you exhausted. Once you are unable to sleep, you next turn to negative actions to cope.