If you’re a technical definition sort of person, you’ll probably like this one from the CFA Institute researcher Peter Salovey: emotional intelligence describes our ability to notice and control our emotions when we make decisions.
At this point, a common objection comes from traders who are used to being successful and “winning” at life. But no amount of success in the boardroom guarantees trading success.
Traders With High Versus Low Emotional Intelligence
An investor with low emotional intelligence is more likely to do whatever their emotions tell them to do without realizing what’s happening or making a conscious decision.Investors with high emotional intelligence are conscious of when their emotions have hijacked them.
According to the Big Five personality theory, people have (you guessed it) five main traits:● Openness to experience.● Conscientiousness.● Extraversion.● Agreeableness.● Neuroticism.