Thank you for bringing focus to this perspective itrade2win.
Acctually I think it is the most important thing every trader should ask one self about. Not in the sense of if one have high enough emotional IQ or not to reach ones goals, but in the sense of this is something I should be conscious about developing as a necessity.
After I started with trading I came to see trading as the poking machine when it came to my weaknesses. To me it became a personal rite of passage. The great thing is that I did not only evolve in connection with trading, but it has also made me stronger and more mature in life generally. So for me trading has truly been a blessing in many areas. I know many see trading in a mundane way where it is only about buying and selling, but I, and many others I expect, have come to see trading as a way of life much in the same way as one can experience with martial arts, with the latter opposed to just punching and kicking. I am convinced that this is where the key to get rid of fear, greed and hope in ones trading lies. Meaning ending up in a single point of focus or inner zone where everyone finds ones best and strongest resources without expectations of performance and so on.
The tricky thing with emotional IQ, as I have come to see it, opposed to other kinds of IQ's is that emotional IQ developement is very much determined by ones ego control, or put in other words how strong ones survival mechanisms in every day life are. Or the other way around how positive ones self-image and strong sense of security is. If too much on the negative side the ego will cause some serious intricate monkey-wreckage in ones system making it very difficult to see and learn from what is going on inside when trading.
If interested in investigating the topic of ego further I would very much recommend the book "Take me to truth - Undoing the Ego" by Nouk Sanchez and Tomas Vieira. Definitely the best book on the matter I think. Easy to read and grasp. Further reading would be "The Power of Now" by Eckhart Tolle. But first "Take me To Truth". Both books have a spiritual perspective to it, but spiritual or not the ego matter is just the same.
Interesting too see how this post unexpectedly evolved. Hopefully it will be of some help. So thanks again itrade2win.
“If you wish to see the truth, then hold no opinions for or against anything.” - Hsin Hsin Ming
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It shouldn't be about getting a higher score. The main purpose is to give you insight on your emotional thoughts and feelings. It would not serve anyone any good to answer just for the sake of getting a higher score. But, I'm sure there may be some that their ego's will have to have the highest score.
The following user says Thank You to itrade2win for this post:
I am not sure on the accuracy of such a test. The challenge is that you have to be completely objective which is so rare. It requires one to be at odds with their ego and in my worthless opinion it is unlikely that anyone completing or interested in completing such a test would be that person!
I really don't think it's about minimizing your emotions, rather than channeling them. Look at some of the greatest athletes in sports and you will find some of the most competitive and emotional individuals. Lance Armstrong, Tiger Woods, and Michael Jordan are all intense athletes that coincidentally, hate to lose. Ironically, they also, all lack personal discipline, and seek external stimulation and a high degree of risk in their personal lives. Yet they are able to channel their emotions when it is required of them, and perform at an elite level.
The important ingredient in success is not emotional dampening per se, but the enhancement of concentration and focus. That is what enables people to act with sustained purpose and stay rooted in their goals. The reason why most traders aren't successful, is they pursue short term pleasures, ( and avoid short term discomfort) at the expense of longer term rewards. Develop the character trait of patience, along with the ability to positively channel you emotions, and you will have at least one of the keys to the kingdom.
The following user says Thank You to tigertrader for this post: