How to Recognize The Presence Of An Emotional
Recognizing the Presence of an Emotion
How do you start building your emotional intelligence (EQ) for trading? First, by changing how you think about emotions and their connection to your thoughts. Every emotion—whether positive or negative—has clear signs that show it is present. Traders with high EQ train themselves to notice these early signs and take action by addressing the belief that caused the emotion. Traders with low EQ never practice noticing these small signs, so the emotion grows strong before they realize it. Even when they are fully caught up in strong feelings (like fear, revenge, or excitement), they still don’t recognize that the emotion is there. As a result, they get surprised by the same automatic emotional reactions that have happened many times before. This lack of emotional awareness is why traders keep repeating the same mistakes.
The brain uses emotions to solve problems quickly for short-term survival, and it turns those solutions into automatic habits when facing stress. These habits will keep repeating until the trader learns to handle both the emotions and the beliefs behind them. Many aspiring traders avoid this difficult emotional work.
Traders often talk about feeling “pressure” during intense moments in trading, but they don’t realize that this pressure is the emotion itself starting to take over. By not seeing that the pressure is the emotion building up, they are not prepared to handle it when it becomes strong. The pressure you feel means the chemicals of the emotion are already moving through your body and brain, and they are already starting to affect your clear thinking.
Recognizing this pressure is a good first step to noticing that an emotion is present. Now let’s look at what happens before the pressure starts, so you can learn how to manage it better.
Before you feel that pressure, the emotion begins building in your body. You experience this build-up as physical tension in areas like your face, jaw, neck, shoulders, back, stomach, or chest. Your breathing also changes,you might hold your breath or start breathing quickly and shallowly. You may notice your heart beating faster or harder. This is the body getting ready for action because of the emotion.
At this stage, the trader starts to feel the pressure. The emotion is no longer just preparing,it is now becoming a full feeling. That feeling is the emotion’s chemicals flowing through your blood and brain. This is the moment when your ability to think clearly starts to weaken.
- Fear releases cortisol, which leads to avoidant or hesitant thinking.
- Adrenaline and testosterone create the anger that drives revenge trading.
- Testosterone and dopamine create the excitement that leads to over-trading or self-sabotage.
An emotional feeling is something you should notice and manage, not ignore. When you ignore it, your ability to stay calm and clear-headed during trading pressure gets weaker.
