Increase Your Investing Profits Through Emotional Intelligence

As anyone who’s ever made a rash move in the heat of the moment and looked back in horror will know, our psychology can have a huge impact on how we make decisions under pressure. This is especially true of trading.

What is Emotional Intelligence?

In everyday life, we say “emotional intelligence” to describe our ability to read other people and respond appropriately. We think of it as a soft skill for job interviews and a tool to keep everyone happy in group situations.

Emotional Intelligence for Investors

An investor must solve a problem every time they make a decision about buying, selling, or holding their assets. Those with low emotional intelligence follow their impulses without even realizing it, whereas high-EQ individuals are able to take a step back.

Why Investors Need to Focus on Emotional Intelligence

To understand why emotional intelligence is important, we only have to look at why so many who are drawn to trading or investing end up losing money. In fact, it’s fair to say that the majority of those who come to the markets, lose money.

Investing is Easy

Learning enough about investment to get started only requires some basic research. There are many books out there, including those written by Warren Buffet, the most successful investor of all time.

Money is Tied Closely to our Psychology

We all have different money psychology, meaning we view financial decisions through a lens unique to our personality and experiences.

Watch Your Beliefs

It’s not just your personality that you need to be careful of; it’s also your beliefs and self-perceived status.

How to Improve Your Emotional Intelligence

Improving your emotional intelligence is all about observing your reactions and feelings when you trade.

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