Trading with emotional intelligence than emotionless

[rajesheck]

Lets go the other way.

While the crowd is talking about emotionless trading, i took a lateral approach lately.


IQ vs EQ

“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” - Warren Buffett

IQ is constant for any adult, which means cannot be improved further. Emotional quotient or emotional intelligence, on the other hand, can be developed through disciplined practice.


EQ in investment

Emotional intelligence can make you a better investor :
http://www.institutionalinvestor.co...-make-you-a-better-investor.html#.VyseOjGoPdo

Author of "Emotionally intelligent investor" says Warren Buffet is an emotionaly intelligent investor.

http://www.prepbeijing.com/2013/07/warren-buffett-temperament-is-key-to-his-success/


What is emotional intelligence?

Emotional intelligence (EI) or emotional quotient (EQ) is the capacity of individuals to recognize their own, and other people's emotions, to discriminate between different feelings and label them appropriately, and to use emotional information to guide thinking and behavior.

https://en.wikipedia.org/wiki/Emotional_intelligence


How can EI help us in trading?

While traders world wide are struggling with their emotional ignorance, successful traders are finding new way to tap emotional intelligence. After reading many articles of successful traders it is clear that they are not emotion less traders but emotionally intelligent traders.

Our emotions can be categorised into three:
1. Positive emotions
2. Negative emotions
3. Balanced (neutral) emotions

While our positive or negative are a bit biased to a given situation, balanced emotions are neutral to the same situation. Emotional intelligence is all about being balanced or neutral to situations and taking wise decisions.

In trading EI can be used to practice emotionally guided trading.

There are various therapies to achieve this neutral consciousness. Here i am presenting you with one of ancient energy therapy:
http://www.elitetrader.com/et/index...hology-and-energy-levels.299179/#post-4272885


Focus means priorities:

While trading have these priorities that help achieving balanced/neutral emotions:
1. "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren Buffett
2. First priority to learn to protect investment (allotted to trading)
3. Second priority to learn to earn
4. There is no technique to earn money
5. There is no secret to earn money
6. Sustained success needs consistent neutral decisions (EI).

All the best !

 

[rajesheck]

Please Note : You can change your vote anytime and as many times

 

[rajesheck]

Downloadable file...

 

[lawrence-lugar]

You kind of talk/think alot;
...Just Do It.

but don't just do it blindly, in a gambley fashion -- you still have to know what you're doing, be able to see clearly on your feet amidst uncertainty.
I like to think of The Trader as a combination of a philosopher and fighter pilot.

 

[goodvintage]

Lets go the other way.

While the crowd is talking about emotionless trading, i took a lateral approach lately.


IQ vs EQ

“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” - Warren Buffett


All the best !

130 is enough already, which is what Buffett meant. This has been misinterpreted by some that your IQ can be arbitrarily low and you can still make it as a trader. That's a myth. Intelligence helps, but other factors are of importance too. Emotional maturity is one of those. You can call it EQ, if you wish, but I am old-fashioned.

 

[bone]

One of the best traders I ever saw never graduated high school. Another one of the best traders I ever saw, and my first mentor, graduated Yale.

 

[rajesheck]

I like to think of The Trader as a combination of a philosopher and fighter pilot.

100% true

I am practical, result oriented at the same time thinker...

 

[rajesheck]

One of the best traders I ever saw never graduated high school. Another one of the best traders I ever saw, and my first mentor, graduated Yale.

Dear Bone

Mr Baron has good confidence in your approach as an educator and says that you are one of the rare professional who provides proof of concept

I hope you are strong in what you are doing, positional trading.

My specialisation is in intraday and momentum based positional trading.

 

[rajesheck]

I was surprised that my strategies are working for me and gives profits while the same is not doing good for my friends. I always used to tell them to apply some common sense and creativity and use my strategies as guidelines and not as rigid rules.

Then slowly i started understanding that i am successful because i am subconsciously giving more priority/importance to common sense and creativity than my strategies.

In other words i am not trading based on my strategies but based on my emotional guidance. I realised that all the common sense, creativity and lateral thinking are packed inside our emotional intelligence.

 

[rajesheck]

Origin of Emotionally guided trading

Though i am touching huge subjects, of high performance, I try my level best to put it as simple as possible.

Emotionally guided trading technique blends trading, EI, Karma Yoga, Ontology and spiritual contemplation in some gentle propositions, though i have not used here any terminologies of the respective subjects, and kept the content with simple plain language as much as possible.

EI is a modern hybrid form of Karma Yoga, Ontology and Psychology.

The energy therapy introduced here in the thread is based on spiritual contemplation advanced than meditation.

Meditation Vs Contemplation
There are four broad levels of consciousness (listed below from low to high).

1. Physical
2. Emotional
3. Mental
4. Soul

Meditation is a huge ocean like subject. Generally meditation is a 'passive' practice from spiritual perspective. Because basically what we do in meditation is calming the mind and wait and see if a contact is established with the Soul consciousness.

On the other hand contemplation or creative imagination of spiritual techniques is considered as 'active' practice from the perspective of soul consciousness, because the one who is contemplating is believed to be the Soul itself.

I have been coached professionally in subjects of Karma Yoga, Ontology and spiritual contemplation for the past many years.