Abstract: As the dominant investor in the stock market,the money manager's investment psychology and behavior would greatly affect on the stock market.This paper researches the effect mechanism of the money manager's past success and failure experience on his present investment psychology and behavior,and this kind of investment psychology and behavior on trading volume of the stock market,the stock price volatility and the money manger's investment performance by setting up an appropriate mathematical model.The results show that the money manager's usual failure experience would make him be over-pessimistic and his usual success experience would make him be overconfident.The expected equilibrium trading volume of the stock market and the volatility of expected equilibrium price would always be positively related to the money manager's past success record,and the money manager who was over-successful or over-failed in the past would not obtain the best real expected performance in the future.

Key words: Money manager’s behavior, Stock market, Effect mechanism