Link: Trading and Anxiety – Opportunity and Danger

Nov 22, 2007: 7:25 PM CST

Dr. Steenbarger recently addressed the topic of “Trading and Anxiety: Navigating Danger and Opportunity” in a recent post that’s absolutely worth review.

Read the whole post, but here are a few highlights:

“Research suggests that people … become highly risk averse when they are anxious.”

“If we are not accurate in our perceptions of danger, then anxiety can inhibit normal risk taking during periods of opportunity.”

Dr. Steenbarger addresses the correlation between heightened market volatility, which can result in increased opportunities for rapid profits, with anxiety (and risk aversion), which tends also to increase during periods of heightened volatility.

He writes:

“The challenge of dealing with anxiety in trading is that, very often, the times of heightened threat are also times of enhanced opportunity.”

Continue to check back to the TraderFeed blog, which will be posting a series of brief articles on these topics.

1 Comment

One Response to “Link: Trading and Anxiety – Opportunity and Danger”

  1. dealing with anxiety Says:

    Thank you, wonderful job! This was the information I needed to get.