Wednesday, February 25, 2009

How to Respond to Change

How to handle change? Something we all need to remember, or learn, these days.

Brett Steenbarger is the author of "The Psychology of Trading" and has an interesting blog called TraderFeeding. One post is about Emotional Intelligence and Trading.

From what I glean, Steenbarger doesn't want to be quoted ("republicated") so I won't. But read his blog. It's interesting. Topics include Listening as a Core Trading Skill, Following the Stock Market like a Psychologist: Catching Shifts in Market Behavior, and Trading and Mental Flexibility.

One can liken Emotional Intelligence to being able to adjust to shifts. It's more than that, but it includes that.

Steenbarger points out that -- this is a relief! -- we don't have to be able to PREDICT shifts (in the market, in our lives, in others), just be able to identify them in a timely manner, process them correctly, and respond to them.

One of his commentators writes that getting to know the stock market is like getting to know someone. That you can't learn about it in a book.

Good stuff on this blog. Check it out. I imagine his books are fascinating as well.

For those who eschew "emotions" - which is silly, since they are always there, and the moreso when ignored - I've always maintained that the stock market, considered the bastion of the non-emotional-male, is one of the most emotional things around. (Emotions give us information.)

Notice how one optimistic word from Bernanke and the US stock market rises -- and also the Asian markets.

Every time I read dire forecasts, I see the lemmings going over the cliff.

Take note - leaders, parents, CEOs, bosses - the power of your "predictions".

To learn more about Emotional Intelligence, take The EQ Course(tm). It's online.
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