MemCast
MemCast / episode / insight
Both over‑emotional and under‑emotional states sabotage trading
  • When traders are over‑emotional, greed, FOMO, revenge‑trading, lack of confidence and euphoria amplify each other and cause poor decisions.
  • When traders are under‑emotional (bored, flat, disinterested) they lack the drive to execute a plan and also perform badly.
  • The optimal state lies somewhere in the middle, where emotions provide enough energy without overwhelming rational control.
Jared TendlerTitans Of Tomorrow00:03:09

Supporting quotes

When you're over emotional, the greed and the FOMO and the revenge trading, the lack of confidence, the overconfidence, the euphoria, all of those emotions get in, you know, amplified, you're going to equally suck. Jared Tendler
You do not want to show up to the markets flat, right? You're bored, disinterested, tired, you're going to suck. Host

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Emotion Balance and Optimal Arousal

Trading performance hinges on hitting a sweet spot of emotional arousal. Too much emotion leads to reckless behavior, while too little creates disengagement. Each trader must discover their personal mix of energy and calm to stay effective.

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