Thursday, October 23, 2008

Use Emotional Intelligence to Win in the Stock Market

Emotional Intelligence helps you play the stock market and win.

From Business Day -- "Street Dogs: The winning traits of market wizards" -- to read the whole article go here: Business Day - News Worth Knowing

Fenton-O’Creevy, who studied 118 professional traders for several European investment banks, found that successful traders tend to be emotionally stable introverts who are open to new experiences.

Trading coach Brett Steenbarger says his study of 64 traders demonstrates ... “one important lesson: success in trading is related to the ability to stay consistent and plan-driven."

Consultants at Market Psychology Consulting, a US firm that coaches market traders, found that the following characteristics produce superior results:

n Low emotional reactivity: Emotional stability is considered crucial, especially during periods of market turbulence. In one study [they] measured traders’ heart rate, blood pressure, and skin conductance while trading and found that more experienced traders had less physiological reactivity to information surprises.

n Low illusion of control and a belief in the occurrence of chance events.

n Low overconfidence: Referring to a misappraisal of one’s foresight, talent, and abilities as being better than they really are.

n High Self-discipline: As it relates to how we manage our impulses. Self-disciplined people are better able to control and channel their impulses towards goals.

n Self-awareness: In the sense of an enhanced consciousness of one’s own physical and emotional state. Additionally, self-aware individuals often have logical reasoning behind their choices and behaviour. Self-awareness is also one of the key traits of individuals who have high emotional intelligence.

If you would like to increase your self-awareness and emotional intelligence, and WIN, email me for coaching, Take THE EQ COURSE for better emotional intelligence, stability and self-awareness.

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