Premium Essay

Control Your Emotion

In:

Submitted By crownwong
Words 4708
Pages 19
Many individual investors will find it agonizing to talk about China’s stock market bubble in 2007.
I fully appreciate their feelings since many lost as much as 60% of their fortune in the stock market that year. When Shanghai Stock Exchange Composite Index fell from 6000 to 5500 points, almost everyone who lost money still believed in the market’s strength and hoped it would bounce back so that they could recoup all their losses in the near future. Few were willing to withdraw their investments though most knew that “stop losses” is a basic investment principle. Shanghai Stock Exchange Composite Index is struggling against 3000 points these days and the investors who watched their investments shrank from when the Index was 6000 points are suffering huge losses.

A lot of my friends who are not investors ask the same question when we talk about the bear market: why didn’t those investors get out of a falling market sooner?

I always laugh at the question because the answer is quite simple: This is human behavior. People set reference points when they start investing. Selling off their positions at a loss is against their natural instinct.

An Interesting Study
A 1979 study by Daniel Kahneman and Amos Tversky showed an interesting phenomenon.

Subjects were told to choose between two prospects:

Prospect 1: A 100 percent chance of losing $3,000
Prospect 2: An 80 percent chance of losing $4,000, but a 20 percent chance of losing nothing.

Ask yourself which one option you would choose. For me, definitely the second one since I still have a chance of losing nothing, though the chance is only 20 percent. In the study, 92 percent of the subjects chose prospect 2, the same choice I would make.

Next, subjects were told to choose between another two prospects:

Prospect 1: A 100 percent chance of gaining $3,000
Prospect 2: An 80 percent chance of

Similar Documents

Premium Essay

Want to Know About Apple,, ,

...How to control your emotions  Meditate. This is one of the better tools to become emotionless. There are several different types of meditation, including Vipassana and Huna, that you can investigate to see which one is right for you. Even the most basic form: closing your eyes and breathing deep, is sometimes enough to lose your emotions. Ads by Google Meditation - Free MP3s The essence of all practice is to be cool. www.ramatalks.com  2 Distance yourself from the situation. You can do this by seeing yourself as an observer of the situation and not an active participant. Focus on the visual details of the environment and disengage from the situational reality.  3 Think logically, not emotionally. If you can't dissociate yourself from the situation, then take a more logical approach (i.e. facts/figures) rather than an approach of anger, hatred, fear, etc. Think of the reasons behind the actions and look at things from all sides before making any sort of judgment.  4 Think of something else. When dealing with a situation that requires the lack of emotion, think of something rudimentary that occupies your mind. A few examples of things to try are: Long division, listing the full names of your entire family, listing all 50 states, naming as many mammals as you can, etc. The key to doing this correctly is to occupy your mind with peaceful and quiet thoughts, while remaining aware of the situation and taking it all in.  5 Realize that you may be wrong. Emotions...

Words: 2875 - Pages: 12

Premium Essay

Emotional Intelligece

...important than your actual IQ when it comes to obtaining success in both your personal life as well as your career. Your emotional intelligence is simply the ability to understand the people around you. Once you understand what emotions are used in order to motivate yourself and others you will be able to work cooperatively with others in a way that is beneficial to everyone. By increasing your emotional intelligence you will be able to read the signals of others and use the appropriate emotions when reacting to them. Regardless of the personality type that you are dealing with, you can respond in a way that will provide the best outcome once you understand the key factors to emotional intelligence. By developing these skills you will have the ability to understand, empathize and negotiate with others successfully. In order to improve your emotional intelligence you must understand that self-awareness, self-regulation, motivation, empathy and social skills all play a role in your emotional intelligence. Learning self-awareness is crucial in developing your emotional intelligence and will allow you to recognize emotions as they happen; and in turn dealing with these emotions right away. In order to develop your level of self-awareness you will need to tune into and evaluate your own emotions so that you can effectively manage them in a productive way. Once you understand how your emotions can effect a situation you will be able to improve your ability to deal...

Words: 7855 - Pages: 32

Premium Essay

Emotional Intelligence

...do with: common sense, motive, evaluation, and placing things in order. This does not have to do with an emotion per say, but rather it is a common sense kind of intelligence. It does not have to be any social skills in involved. Cognitive intelligence is based on the mind skills, your thoughts without any help from anyone, the capability to unravel dilemmas and brainteasers. Emotional intelligence is the capability to recognize emotions, to understand it, to way in and produce emotions to support, to be in charge of the emotions pertaining to one’s reaction and being considerate of their emotions. It consists of four attributes and they are, Self awareness: knowing what your emotions are, how you react to criticism and comments. Self management: the way you control your emotions and how you handle anger. Social awareness: you can relate to your surroundings, taking responsibilities of your rights and or wrong doings. Relationship management: can communicate with friends, family, or coworkers. Emotional intelligence (EQ) in work life is used on a day to day basis. It is having to dealing with co-workers and their emotions, to be able to control your own and also control a co-workers emotion. Usually a person who can control themselves in an environment of other people, they are the ones who do not have cognitive intelligence. What was stated earlier, they can control their work environment with co-workers, but cannot figure how to budget their department spending. In the...

Words: 611 - Pages: 3

Premium Essay

Emotional Intelligence Project

...Emotional Intelligence is the ability to perceive, control and evaluate emotions. It is part of who we are as individuals and can help achieve success and happiness. Emotional intelligence revolves around four attributes self-awareness, self-management, social awareness, and relationship management. Emotional intelligence differs from cognitive intelligence in many different ways. Expert’s and researchers suggest that EQ can be learned and strengthened, and it can be considered more important than IQ. Emotional Intelligence Emotional intelligence has become a hot topic in the corporate world ever since the publication of Daniel Goleman’s book, Emotional Intelligence. It has been so impactful that Harvard Business published an article on the topic and it attracted more readers than any other article published in the last 40 years. It also made a big impression on the CEO of Johnson & Johnson and he immediately send out copies of the book to 400 executives in the company. Emotional intelligence plays a big role in reaching success in our personal life and at work. Emotional Intelligence VS Cognitive Intelligence Emotional intelligence (EQ) refers to the understanding your own emotions, as well as the emotions of people around you. Understanding how to control emotions can result in a positive outcome for everyone. It is also knowing where emotions come from and what they mean, and also being able to manage these emotions and control them. People with high emotional intelligence...

Words: 1019 - Pages: 5

Premium Essay

Leadership

... interpret, and respond to emotions in ourselves and others. EI is the capacity to recognize emotions in others based on facial expressions and body language, respond appropriately to that emotion, and at the same time being aware of our own reaction to the situation. (Cherry, 2013) Emotional intelligence is also about staying in control of your own emotions and managing emotions in others. (Fletcher, 2012) B. Why is Emotional Intelligence Important in the Workplace? Many leaders in business rank EI as one the most important characteristics of an effective leader. EI is seen as a distinguishing factor that separates the great from the good. Having good EI also helps leaders day to day in five different ways. (Fletcher, 2012) 1. Self-Awareness Leaders with high EI are able to acknowledge their own emotions in situations and objectively asses if their emotions are helping them or hurting them at work. Is their enthusiasm and happiness helping lead a team? Or is their own stress and anxiety causing extra worry in their direct reports? If one is getting angry at work, EI helps one take a step back and assess what they are reacting to that is making them angry. 2. Emotional Management Once leaders are self-aware they can better regulate their own emotions and stay in control at work. These individuals are less likely to make a hasty decision based on emotions and protect the company’s best interests. Leaders who are in control of their emotions are also better role models...

Words: 805 - Pages: 4

Premium Essay

How to Control Emotions in Thailand

...How to control emotions in Thailand Everyday living in circumstance affect our emotion such happiness and misery. Happiness is positive feeling, but the happiness on other misery is terrible things. However, important emotion that must have to control is misery because it yields most terrible things on you, others, moreover on organization. Therefore this essay would focus on misery that may consist of greedy, anger, and lust. Thailand is a Buddhist country. Therefore, Buddha’s the doctrine become mainly idea to control emotions. Regulations of organization or law in Thailand are also helping people control their emotions. First of all, consciousness and meditation could make people themselves control their emotions because meditation brings more consciousness and calm. When you calm down then you could stop any terrible action. Moreover, more meditation makes more remembrance, circumspect, and also relaxes. Second, when you anger you shouldn’t immediately response your emotions. You should stop, and then realize what outcome would happen. On the other hand, you might avoid that situation to reduce violent, and then come back to that situation again this could make you gain more consciousness before done any terrible things. Third, forgiveness and positive thinking bring people liberate from suffering. For example, if you anger at someone, and then both you and him/her have intolerance. This would make misery to both. Thus, forgiveness each other would bring happiness...

Words: 415 - Pages: 2

Free Essay

The Myth of Emotionless Trading

...Header: Psychology Title: The Myth of Emotionless Trading Sub-title: It may be impossible to shut emotion out of your trading decisions, but you can master the emotions that hinder profits. Frank Kollar looks at the emotions that accompany the decisions that must be made in trading. The winning market timer is cold, calculating and unemotional. Sound a bit unreal? Maybe it is, but the reality is that it is important to control your emotions, rather than let them interfere with your trading decisions. We have written many times about fear and greed and how they are the true motives behind market behavior. Fear and greed may control the masses, but if they are allowed to control you, you become one of the millions who cannot understand why they cannot make a profit when, supposedly, everyone else is. There are also other emotions, such as anger and disappointment that can influence your decisions. Emotions may interfere with discipline and sound decision making. But, they are not “all-powerful.” You can master and control them. Fight Or Flight It is reasonable to be fearful when real money is on the line. That is why winning market timers protect themselves by trading with a detailed market-timing strategy. Timing strategies are not affected by the emotions of the masses, and they are also designed to manage risk. When you know your strategy works over time and is designed to minimize risk, you can execute the buy and sell signals effortlessly and with less fear. You...

Words: 789 - Pages: 4

Premium Essay

Impact of Emotional Intelligence Individual Performance

...2004). EQ is a subset of social intelligence, a set of mental abilities separate from personality. Goleman’s (1995, p. 34) “notion of EQ includes knowing what you are feeling and using that knowledge to make good decisions”. Emotional intelligence (EI) refers to the ability to perceive, control and evaluate emotions. Some researchers suggest that emotional intelligence can be learned and strengthened, while others claim it is an inborn characteristic. Since 1990, Peter Salovey and John D. Mayer have been the leading researchers on emotional intelligence. In their influential article "Emotional Intelligence," they defined emotional intelligence as, "the subset of social intelligence that involves the ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions" EI is composed of five dimensions: Self awareness: being aware of what’s you are feeling. Self management: the ability to manage your own emotions and impulses Self motivation: the ability to persist in the face of setbacks and failure. Empathy: the ability to sense how others are feeling. Social skills: the ability to handle the emotions of others. Literature review: All managers have to make decisions – and often these...

Words: 2397 - Pages: 10

Premium Essay

Expressing Emotion

...relationship and your spouse doesn’t really show all the emotions you want them to can make difficulties in your relationship. Emotions give us important information that we can use to better each other understands on our needs, priorities and limits. We use emotions to set our boundaries and that helps us make decisions. If you’re not expressing your emotions that can make your spouse being to have trust issues, and insecurities. When your partner isn’t sharing their sadness, or when they have a loss showing their grief, then your relationship isn’t safe when having to deal with conflict. If your partner doesn’t show their healthy anger or assertion then their resentments will over time build up. Mostly men won’t show their emotions because they were told it was a sign of weakness or a sign of them not being in control of their emotions. Also, some people think that once they get into their emotions then they will be overwhelmed with emotions and not stop. A common misconception is if you start crying then it becomes hard to stop. People often avoid their emotions, they try to ignore their emotions or they wait until they get somewhere alone and then they let all of their emotions out. It’s very frustrating when your partner doesn’t show their emotions and doesn’t communicate their problems either. We are made to have feelings the way we express these feelings is how we were raised when we were younger. Knowing how to express those feelings tactfully to be able to sustain your intimate...

Words: 969 - Pages: 4

Premium Essay

Emotional Marketing

...Managing Customer Emotions Project Submitted to: Prof. Neelu Bhullar Submitted by: Arun Yadav - 25NMP10 So building Emotional connection of the brand with the customer is an integral and important job of marketer. Introduction There is always some kind of emotion that push you to pull out your wallet, checkbook, or credit card although there is no need for the product .Also after the purchase you have all kinds of reasons to logically back up your purchase .The principles that actually motivated you to make the purchase is the underlying reason the way that the purchased item made you feel. We all buy based on the way that a product or service makes us feel, and the big marketing companies all know that. It's all about perception and how your products/services make a potential buyer feel. Rational Motives & Emotional Motives Customer both have Rational and Emotional motive while making any purchase decision. Rational motive can be Improving profit, Reducing costs, Better efficiency, Dependability, Easier, more cost effective maintenance, Utility, Security, Health and Safety. Whereas emotional motive can be Pride, Fear, Comfort, Not wishing to look foolish, Envy, Laziness, Approval, Being like others. The functional needs Satisfies by product functions and emotional needs associated with the psychological aspects of Product ownership. The...

Words: 1524 - Pages: 7

Premium Essay

Psychology in a Beautiful Mind

...effectively convey the barriers to distinguishing subconscious patterns within the mind. Click Here To Listen/Download This Page As An MP3 Podcast Psychology In A Beautiful Mind – Competition & Conflict The primary problem for Nash was his inability to distinguish between reality and his delusions. Even normal people fail to distinguish the concrete emotional changes in their viewpoints during the course of an average day. You may be fuming with resentment one moment and joyful, the next. These hidden shifts in moods and attitudes have a clear cause. They happen, because the control of your mind shifts between myriad competing and conflicting intelligences. These intelligences were assembled over millions of years to become the present triune human brain. At the lowest level, a reptilian brain controls primitive functions like breathing, hunger and heartbeat. At the next level, a mammalian brain controls the system through love and despair, compassion and shame. At the highest level exists...

Words: 1880 - Pages: 8

Premium Essay

Emotional Intelligence: Emotional Intelligence

...assess, and manage the emotions of one's self, and of others.� Arriving at the Emotional Quotient is the standard means of measuring the Emotional Intelligence of an individual. | The importance of EQ in the workplace: In recent times behavioral scientists around the world have arrived at the conclusion that IQ alone is not the primary factor that leads to better performing managers and workers. The role of EQ in determining the performance of individual�s at the workplace is now widely recognized and well understood. People with more emotional intelligence have been found to be better leaders and workers, bettering their lower-EQ counterparts on important traits such as leadership, decision making skills, self control, empathy, teamwork, self-confidence and orientation to achieve higher goals. | In today�s fast paced business environment, a well balanced handling of relationships and emotions play a crucial role in achieving success. Emotions play an important role in decision making and strategy formulation, allowing people with higher EQ to handle work related situations more efficiently. | Your Overall EQ Score: This EQ test is based on the standard five personality traits related to EQ and which have been proposed by Reuven Bar-On, namely: 1.Interpersonal EQ (social responsibility / empathy) 2.Intrapersonal EQ (emotional self-awareness) 3.Adaptability (flexibility / reality testing) 4.Stress management (stress tolerance / impulse control) 5.General mood (cheerful...

Words: 1338 - Pages: 6

Premium Essay

Case 1 Incident

...What factors do you think make some organizations ineffective at managing emotions? Some factors that make some organizations ineffective at managing emotions could managers don’t understand psychology, or the organization does not offer programs such as anger management to employees. Emotions are strong feelings directed at someone or something (Organizational Behavior, page 98). Some managers do not have any experience handling employee’s emotions, or they may not know how to approach any issues dealing with emotions. Understanding emotions is important for organizations and managers to understand, because detecting emotions can lead to creating an effective environment. So I think organizations should offer employees a training session or show a video on how to manage emotions in the workplace, and to have guidelines on how to manage emotions in the organization. Handling emotions in the workplace will create a positive atmosphere, and will improve production in the organization. Do you think the strategic use and display of emotions serve to protect employees, or does covering your true emotions at work lead to more problems than it solves? I think the use of strategic use and display of emotions serve to protect employees for a reason, and that even though you cover your true emotions in certain situations it’s best for the organization. Displayed emotions are those that the organization requires workers to show and considers appropriate in a given...

Words: 493 - Pages: 2

Free Essay

Emotional Intelligence

...What is emotional intelligence? Emotions inform us about things that are important to us, like the people in our lives, values we hold, needs we may have, or the activities we enjoy. It leads to the motivation, drive, self-control, and passion in our lives – whether at work or at home (Segal, 1997). Emotional Intelligence is having emotional awareness; it refers to the ability to understand our own emotions as well as the emotions of those around us. It involves how we understand our own feelings, have empathy for others, and regulate our emotions to connect with people (DuBrin, 2010). Without it, it would be difficult to build lasting relationships, maintain our families, and succeed as managers. EQ vs IQ What is the difference between emotional intelligence (EQ) and intelligence quotient (IQ)? IQ is the measurement of a person’s ability to learn, understand, and apply information. An IQ can be determined by answering standardized questions and comparing the score to that of other people within the same age rage. This numerical value can help determine a person’s intellect and measure concepts like word comprehension, math skills, and logical reasoning (Ellis-Christensen, 2012). EQ on the other hand, is a measurement of how one recognizes and responds to emotions and how well they communicate with others. EQ can be more difficult to measure because test questions are usually subjective, unlike IQ testing which has more definitive answers for scoring. In general...

Words: 1241 - Pages: 5

Free Essay

Emotions

...Imani Wiseman Mrs. Rash English 111 August 23, 2015 I was asked out of the five emotions (joy, sadness, fear, anger and disgust) which emotion most controls my emotional panel. This question for me was extremely difficult to answer because a person goes through so many emotions every day. However, if I had to choose one emotion it would have to be anger. I often find myself being angry for some reason or another. The emotion I least identify with is disgust. I choose the emotion anger because anger has played a pivotal role in my life. It takes over a big percentage of my emotions. Anger is a very powerful emotion, in fact, it is arguably the most powerful. I’ve recently realized it doesn’t take a lot to anger me. The cause of my anger ranges from disappointment to agitation. Sometimes I am angry from things I can’t control like other peoples decisions or tragedy. Society itself has a tendency to anger me, the world just isn’t right sometimes in my eyes. It has taken me an extremely long time to realize that I can’t control anything but myself. This includes how I deal with negative emotions such as anger or sadness. Anger is what I like to call a blinding emotion. A blinding emotion is an emotion that if allowed to take control of your subconscious can sway your decision making process in a negative way. The emotion that least effect on me I disgust because I have a high tolerance for the ugly things in life. It’s kind of hard to be disgusted when nothing...

Words: 480 - Pages: 2