Bring Back Emotion: Using Psychology for Trading, Investing and Risk

Too Long; Didn't Read

‘How to Remove Emotion from the Equation’ or something similar were the headlines of countless articles and self-help guides over the last decade. The idea of making a decision based solely on data was attractive; it lets people think that they were making the best moves no matter what their heart was telling them. What if I were to tell you that line of thinking is completely backward, and that some of the most successful fund managers in the world know it? Well, they know it now, thanks to my latest guest on the Success Story podcast. Denise Shull, the founder of The Rethink Group, spoke with me about a new way to understand and embrace the value of your emotions — even your negative ones — to make better decisions, set probabilities, or succeed in previously unattainable areas. Don’t get me wrong, this isn’t easy stuff. I even misunderstood what she was trying to tell me when we were speaking directly (which she laughed off as something she experiences daily). But by the time I was shutting down my video call, my brain was spinning with these new possibilities. “I honestly think the analogy is round earth-flat earth. It looks like emotions get in your way, just like it looks like the Earth is flat. But it’s a misunderstanding of how it’s really working.” Mind. Blown.