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Smart Tradeist

Emotional Intelligence to Optimize Trader Performance

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Meet Our Team

Juliana Jasso

Marina Saffold

Pomona College

Kiana Ramos

University of Notre Dame

Jesus Munoz

Brown University

Justine Paragas

Simmons University

University of Pennsylvania

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Problem

Stress impacts trader decisions
Impulsiveness lowers job performance
Interferes with desire to be the best in the industry

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Considerations

Sought to enhance the key aspects of emotional intelligence:

Emotional self-awareness, flexibility, impulse control, stress tolerance

Studies show that emotional intelligence is a predictor of professional success, wellbeing, and socially relevant outcomes (Gilar-Corbi, 2019)

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Considerations

Key consideration: TIME

Adapt to the fast-paced nature of the stock market
Regulate their emotions within seconds
Provide relevant information quickly
Track emotions + success over time

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Suggestions

Fast and easy to read

Graphs
Up to date resources

Gives personalized feedback

Relates to emotion and time
Relates to sales
Depend account set-up

Simple and straightforward

Only two options

Give quick feedback

Daily messages
Resources for during and after hours

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Emotions affect Cognitive Decision-Making

Emotions can induce biases
Strong emotions lead to a higher chance of risk taking

It is evident that because emotions are a vital part of cognitive processes, and emotions will impact decision-making.
There are two significant effects emotions can cause in decision making.
Emotional bias because prominent in situations that are similar to another experience. For example, last week Ryan had a really bad trade that caused him to lose a lot of money because he did not act fast enough. He is now approaching a similar situation and may just act more on fear than analyzing this situation for its unique characteristics and understanding the best route may be different than what it was last week.
In addition, strong emotions might foster feelings of carelessness or false confidence. If someone is too optimistic, they may be making trades under the continuous assumption that they can get the best benefit from taking risks. On the other hand, if you are having a terrible day, you may be more prone to just simply completing your work for the day without caring about the impacts your trades have financially wise.

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Research in Relation to Traders

From this information, we looked at how these emotions transfer into the trading business.
We found that employees tend to try to hide their emotions during trading because they feel as the best traders are “unemotional.” As a result, they tend to suppress their emotions, which in all aspects of life has shown to not be healthy.
In fact, research has shown that it is more effective to acknowledge and reflect on your emotions than try to immediately try to get back in a positive mindset prematurely.
However, we found that there is a discrepancy between the ways that low-experienced traders and high-experienced traders where high-experienced traders are more likely to use appraisal focused emotion regulation techniques whereas low experienced traders are more likely to avoid or use defensive methods against their emotions.
Based off of these findings, we wanted to create a program that would allow traders to create a habit to provide attention to their emotions in the workplace in order to minimize the chance of continuing the unhealthy habit of letting their emotions affect their trades because they do not take a moment to recognize what those emotions are.

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Prototype

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Conclusion

Shows the progress trends of traders’ mood level overtime
Understanding the mood concepts
Learning how to identify the causes of mood changes
Gain emotional intelligence
Balance

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Questions before we go?

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THANK YOU!