People often talk about emotions as if they were peripheral to trading, but they are front and centre of trading. We are humans, we have emotions and they get triggered. You can not escape them, you can't ignore, them you cannot pretend they don't happen. How you manage through them is key to your success. Nearly every major figure from the world of trading at one time or another mentions them in some way. One of our favourite quotes alluding to them comes from the great investor, Howard Marks. He said
“The discipline which is most important in investing is not accounting or economics, but psychology”
The legend that is Warren Buffett, says something similar.
“Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.”
Whilst one of the profound quotes on the subject came from the interview with Victor Sperandeo in the first Market Wizards book:
“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.”
This episode calls upon the help of a couple of excerpts taken from interviews with 2 of our most popular guests Merritt Black and Tom Canfield. We would also recommend listening to these episodes in more depth if you interest in the emotional aspects of trading. As well our great episodes with Performance Coach, Denise Shull.
The AlphaMind Podcast is produced in partnership with 'The Society of Technical Analysts'.
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