Emotions in trading

 by Maria Jane Poncardas


    My previous article discusses about an overview of trading psychology, wherein the emotion is a huge contributor. Why can we say that? The Greek word 'psyche' means 'soul', therefore, Psychology is the study of our soul. There are three parts of the soul -- the mind, emotion and will. Each of the aspect that when distorted, will overthrow the entire balance of psychology. Thus, we notice that when a person is about to rampage (by revenge trading), both the decision making and mindfulness is distracted.

    I recalled from Rande Howell's ideas that breathing is part of our emotion. When we are furious, we breathe deep, when we are ecstatic, we breathe rapidly. We need to acknowledge the importance of breathing with respect to our emotions. We may have not noticed our breathing patterns since it is already an integral part of our system. But, it intensifies when it is associated with an emotion.

    My take about emotions in relation to our trading is, we need to realize that it is about to distort our mindfulness and decision making. Emotions and breathing are associated to each other. Hence, when we notice changes in our breathing patterns, that may be a sign for us to pull out from the computer and avoid setting up distorted trading. This is my hypothesis to Takashi Kotegawa's emotionless trading.

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