How Emotional Intelligence ‎Can Unlock Investing and Trading Profits

What separates great traders from less experienced ones is how they react to these feelings, which depends on our emotional intelligence.

What is Emotional intelligence?

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.

Don’t Rely on Your Past Success

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.

Strategies for Increasing Your Emotional Intelligence When Trading

Here are some of the most useful techniques I’ve used to work on my emotional intelligence.

Examine Your Personality

According to the Big Five personality theory, people have (you guessed it) five main traits: ● Openness to experience. ● Conscientiousness. ● Extraversion. ● Agreeableness. ● Neuroticism.

Practice When The Stakes are Low

Even if you think you know, it’s still best to test out how you act in practice so you can fine-tune your strategies.

Practice Meditation or Yoga

Depending on your schedule, you might also want to integrate a yoga practise into your day as well.

Join a Tribe

Perhaps the most powerful move you can make to increase your emotional intelligence is ensuring that you’re never struggling alone.

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