The Smartest Trader Gets The Cheese

Building Emotional Intelligence

Improving Your EQ

The smartest trader gets the cheese, right? Not in this game! Smart traders tend to struggle. Huh? That makes no sense…

You’re right it’s strange, but a high IQ does not correlate to high profits. A much better indicator is a high EQ or emotional intelligence.

(High IQ and EQ is a perfect world but hey let’s work with what we’ve got)

A high EQ is like a superpower in trading.

  • Better emotional control
  • Clearer decisions
  • Strong discipline
  • Good at handling losses
  • Better risk management

Sounds good right?

Today, let’s think about ways to improve your EQ.

Develop self-awareness.

Think about your own emotions, how does the market or that last trade make you feel?

Manage stress levels.

You can’t think clearly if you let yourself get stressed out. Take some screen breaks, do some exercise and don’t swing around huge clip sizes!

Practice empathy

This is not a self-help book or guide to finding your soul mate… we’re here to boost that PnL… But working on empathy and putting yourself in others’ shoes can give you the ability to see the markets from the perspective of other participants.

Think trapped traders desperately seeking exit liquidity MUHAHAHA.

Did I say that out loud?

I meant “Think of other market participants and their motivation” 

Last one:

Learn from others

Get yourself in a group of traders that talk about EQ, analyse emotions, and decode market moves from the perspective of other traders.

Because sometimes just shifting your environment can have a massive impact on your own thinking.

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Train Your Mind

Check out this video interview with Andrew Menaker, in particular, the question traders should ask themselves at 12.50…