Case 2 scientific investigation Essay Example | Topics and Well Written Essays - 250 words

Case 2 scientific investigation - Essay Example w Lo and Dmitry Repin, the two scholars utilized psycho physiological equipment to evaluate heart rate, skin conductance and blood pressure on traders executing real-time trading. Results showed that the experienced traders had a lower physiological reactivity to disturbing and abrupt information. Additionally, Oblechner (2004) discovered "emotional stability is equally important for a successful trader." Traders whose emotional reactions to losses and gains on the extreme positive or negative side show poor trading performance meaning a negative relation between emotional reactivity and successful trading behavior. (Lo and Repin, 2005) Overconfident traders have a tendency of trading too frequently and appear to ignore danger signs concerning their positions. According to Biais et al., 2001, overconfidence is related to sub-par performance amongst traders in an experimental environment and that overconfident traders stay with underachieving stock for a long time and sell their winning stocks too early leading to underperformance in the market. Self-awareness is an increased consciousness of ones own emotional and physical state. Traders who have self-awareness have logical reasoning behind all their behaviors and choices. Traders with self-awareness have a high emotional intelligence associated with long term success rate. (Biais et al,