Emotions & Decisions

Mental Match-up NBA Finals Game 1 – Advantage #CAVS

Going in, the mental advantage tips to the Cavs. The Cavs can lose one and maybe even two games and still feel that they can come back, still feel like “so what, we’ve done this before.”

On the other hand, if Curry, Durant and Green lose even one game early in the series, they are going […]

By |June 1st, 2017|Emotion Analytics, Emotions & Decisions, sports psychology|0 Comments

Trading Emotions Echo the Past

A trader I coach predicted this as the best positioning for Brexit : Short the pound, short the S&Ps, long gold and short oil. This is John B. – a guy with 20+ years of very successful experience and a recent history of working on separating instinct from impulse through coaching.

We speak three times a […]

FOMO or Fear of Feeling Bad in the Future

This morning I was talking to a coaching client and we jointly realized that to characterize one of the most powerful trading emotions as FOMO actually misses the most important point. FOMO – or fear of missing out – connotates the fear of missing an event which really isn’t the mental set-up causing one to […]

By |January 5th, 2016|Emotion Analytics, Emotion research, Emotions & Decisions|0 Comments

Why Advanced Trading Psychology is Your Best Bet

In the Annual Review of Psychology 2015, Lerner of Harvard points out that from 1970 to 1995 there were virtually NO scientific papers on the subject of emotions and judgment and decision making (JDM). From 1995-2000 there were less than 50 a year and then it began to climb. The number of papers doubled from […]

Which Strategy for Trading Emotions Actually Wins?

Conventional wisdom still dictates that traders “control their emotions.” Yet somewhat conversely, the cutting edge of neuroeconomics research shows that “emotion determines how we perceive our world, organize our memory and make important decisions” (Brosh, 2013).

Ever wonder why you did the exact thing you planned not to? Ever marvel at how you said you would […]

Brain Turns Statistics into Emotion!

In technical terms, the researchers call this projected emotion, “anticipatory affect”. In simple terms, the results of this meta-analysis of the brain’s reaction to probabilities in risk goes like this:

1. A trader or PM takes in information about the expected mean, variance or skewness of a trade.

2. The PM or trader’s brain responds with an […]

A Simple Parsing for Emotion in Trading Psychology

As we learn more about the importance of emotional information in trading decisions, it's challenging to switch to looking at feelings and emotions as data. It's doubly hard because there is so much misinformation still floating around! To that end, I was happy to see Psyblog publish

By |July 14th, 2014|Emotion Analytics, Emotion research, Emotions & Decisions|0 Comments

How Traders can Leverage the New 4 “Basic” Emotions

Did you know that no one knows for sure how many “basic” (irreducible) emotions there are? Many scientists have long believed in six, a new study indicates four and a growing body of work by the teams emerging from Lisa Feldman Barrett’s labs makes a very credible case for only two – approach and avoidance […]

THE Trading Dilmemma

Maybe the toughest challenge in trading – or market risk decisions – is resolving the conflict over now or later? Should I get in now or later? Should I get out now or later? One can throw a whole bunch of so-called facts at the question and still be no closer to a satisfying (or […]

ReThinking Trading Psychology 101 (version 2)

Originally posted on Business Insider, April 17.

Conventional wisdom in trading psychology used to depend on two primary tenets – discipline and ‘control your emotions’. But that was before neuroscience started putting traders, poker players and other risk-gamers into brain scanners. Now that we know that all decisions depend on the presence of an emotion, most […]