“Emotional arousal” is not something to avoid, but to master. By Elise Payzan Le Nestour

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All this suggests that emotions are key information providers when deciding under uncertainty. They make us tuned to our environment. Actually, in some contexts of fast and intuitive decision-making in the face of unstable (high vol) conditions, one expects that the stronger the emotional uncertainty signals of the day-trader, the higher the performance.

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Fraud & Fear: Weekend Papers report on Facts & Feelings

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WSJ Weekend: "Fund Fraud Hits Big Names". New York Times Sunday Business: Schiller talks confidence and beliefs and Ben Stein talks fear. Madoff's investors "felt confident" in his long-time consistent returns. Yet every article indicates there were multiple red flags. No investment fees? Not even a 1% management fee when…

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Deep Breaths, No TV and Calm

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The WSJ's Intelligent Investor ... The weekend edition of the WSJ included Zweig's column on fighting the herd mentality. In many ways it is good article... but it does what all articles and commentary seem to do... in the end it says "get rational". The problem with this is when…

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