Emotion Analytics

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

Unnoticed Contexts & Trading Performance

Earlier this week, one of my clients with the title “Head of Equity Trading” wrote exactly this sentence copied and pasted from his email: “i had another one of those traading days where i let my loss just go to its fullest, and had a really bad day.”

SO… how does a trader of that level […]

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 […]

A New Trading Psyche for 2014

What can a trader do (really do) to optimize their mind for trading? Is it “plan the trade, trade the plan”? Is it “control their emotions”? Is it something else?

Here’s what works.

Realize that like professional sports, trading is a performance discipline.
#1 means that the interaction of body, mind and “spirit” IS the place to […]

Key Layers of Trading Related Emotions

First of all, neuroscience is teaching us that trying to separate risk decision making from feeling or emotion is at best a waste of time and at worse, a sure way to eventually trade-out (like act out) the feeling/emotion that is present. Second, there is a logical fallacy in the idea of “control your emotions” […]

Fear, Affect, Emotion & Psychological Science

Forms of fear permeate the process of trading. Every market decision bets on a fundamentally unknowable future and as such, trading implicitly includes a factor derived from the spectrum of panic to overconfidence. Moment to moment, a trader’s beliefs can ameliorate debilitating or palpable fear but as most honest traders know, price action “mis-behavior” can […]

By |October 29th, 2013|Emotion Analytics, Pure Science, Risk Decisions|0 Comments

Do I want to be Right or Do I want to make Money?

As I prepare for The Galtere Institute’s Behavioral Finance symposium, I am doing what I always do before I speak – catching up on the latest studies on emotion and risk decision making. For example, did you know that there is actually still much disagreement in science about what emotion is and how it works? […]

By |October 6th, 2013|Emotion Analytics, Pure Science, Risk Decisions, trading psychology|0 Comments

Improving your Market Movement Calls

Price action in the markets is “the tell” – as they used to say. (It seems that is one of those words that has come and gone). But the problem is this said ‘tell’, tells you different things – it can be interpreted many ways. It is what is known as ambiguous.

Humans have a known […]

By |May 30th, 2013|Emotion Analytics, Learning Psych Cap, Markets, Trading Education|0 Comments

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 […]