Friday, August 31, 2007

Emotions and the Stock Market

Applications of Emotional Intelligence, that's what it's all about. And there's nothing more emotional than MONEY.

I came across a blog about understanding the basics of the US stock market. It's called The Bullhunters Guide, referring to the bull market of course, and is to guide people through understanding the basics of the US stock market. Now, in coaching emotional intelligence, I still run in to people who consider it not masculine to "be emotional." As long as we're dealing with stereotypes, isn't the stock market and finances a 'masculine' domain? And isn't the stock market one of the most emotional things out there - hysterical, even. Panic often appears to drive it. That's one of the things stock brokers have to work hard with in clients, especially inexperienced ones.

That having been said, this entry was entitled "Emotional Intelligence," so lets look at what she says. "Funny," it begins. "Just when you think you have it all together it comes up with another challenge,"

From the article:

If you are a trader already and have money in the stock market then you know how you react or respond when our trades don’t happen the way you want them to. It is just a matter of learning from your trades and not being attached to them... [If you suffer a loss] ... If you happen to react and start kicking and screaming and feeling sorry for yourself, then you have not learned the lesson. If this happens you can make some bad choices.

Rather, if you respond and change the way you view the situation, you will do even better the next time. If you are trading for cashflow, then you really have to have a plan in place. I am not here to advise you on your rules for trading as everyone eventually finds the way it works for them. It’s like learning anything new, you try a system and then tweak it to suit your personality. So its a little like when you are in your car driving along… do you focus on the bugs on the windscreen or on your destination? If you let the little things in life get in the way and focus on the trades that didn’t go your way, that’s what you will keep on getting. Take charge of your emotional intelligence today and focus on your destination with a sense of certainty. You will be a whole lot happier on your journey.

Why did I flash on "dating"?

Read the whole article on The Bullhunters Guide.

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