What is more important for success as a trader - A high level of Intellectual Intelligence, or a high level of Emotional Intelligence?
Warren Buffett once said; "Success in investing doesn't correlate with I.Q. once you're above the level of 125. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing".
On my linkedin group (Trader, Trading & Risk Psychology) a very interesting debate has been raging about which sort of intelligence is most useful when trading. The responses have been extremely interesting and illuminating.
Very briefly emotional intelligence can be defined as an ability, skill or a self-perceived ability to identify, assess, and control the emotions of oneself, of others, and of groups.
Broadly speaking intellectual intelligence can be defined an academic or cognitive intelligence. Resing and Drenth (2007) use the following definition: "The whole of cognitive or intellectual abilities required to obtain knowledge, and to use that knowledge in a good way to solve problems that have a well described goal and structure."
To follow the discussion or participate, click this link.
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