How To Develop Emotional Intelligence
If emotions are important in understanding price action, then emotional intelligence becomes a requirement of technical analysis. In other words, what does an investor or trader have to know to detect emotion in the market effectively, and how can one derive this knowledge There are several categories of investor emotional intelligence A premise of this book is that an added benefit of alternative charting is that it gives an edge to the trader in detecting emotional phases in the market. When we view charts in this context, each chart type provides different abilities to extract or detect which emotion dominated the price action. The candlestick chart (Figure 1.1) provides a snapshot of bullish versus bearish sentiment. A white candle shows that the bullish sentiment prevailed, and a black candle showed that bearish emotions dominated. The line chart presents boundaries of resistance and support. Price action that comes close to the line, probes it, or breaks it reveals a state of...
I am grateful to Dan Goleman for allowing me to reproduce some of his ideas here in application to market trading. His two books, Emotional Intelligence (1995) and The New Leaders (2002), are wide-ranging accounts of the importance of emotions in people's personal, social, and working lives. The title Emotional Intelligence was taken from an article published by Peter Salovey and John Mayer in 1990 which showed the relationship between emotions and rational thought. If we remember in the previous section the discussion of Phineas Gage who, despite being fully intelligent, had made disastrous choices in his business and personal life, and even obsessed endlessly over decisions so simple such as going to the shop or making an appointment. The relationship between bluntness or lack of emotions and inability to make rational decisions has now been well documented in many cases. Dr A. Damasio, a brain neurophysiolo-gist, has now published numerous research papers demonstrating that...
Perhaps the most useful approach that has arisen is the characterization of price movement as signatures of fear and greed. In reality, these terms are generic categories that try to capture variations in the emotions involved. Market sentiment, risk appetite, and risk aversion are among the most frequent terms used to unpack the meaning of emotions. We are all familiar with characterizations, such as the market was surprised, that speak of the market as if it was an emotionally intelligent entity. Perhaps this assumption is not far from the truth.
While gut feel can contribute to more accurate analytical decisions, moderate or strong emotions often lead to biased decision making. Fortunately for those who want to improve their decision-making process, emotion can be detected and managed with the right psychological tools, primarily through the internal honing of emotional intelligence skills.
Official Download Page How To Develop Emotional Intelligence
There is no place where you can download How To Develop Emotional Intelligence for free and also you should not channel your time and effort into something illegal.