Intuition, expertise and emotion in the decision making of investment bank traders

Vohra, Shalini; Fenton-O’Creevy, Mark

doi:10.4337/9781782545996.00015

Cited by 2 publications

(1 citation statement)

References 22 publications

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“…Positive emotions are associated with better financial decision-making in older adults (Eberhardt et al, 2019) and expectations about the value increase of bought assets (Gabbi & Zanotti, 2019). The bulk of work related to emotion regulation in the area was done among securities traders, where emotion regulation emerged as the most important factor separating the successful from the unsuccessful traders (Fenton-O'Ccreevy et al, 2012;Vohra & Fenton-O'Creevy, 2011), with difficulties in regulating emotions having a detrimental effect on trading performance (Charoensukmongkol & Aumeboonsuke, 2016). Moreover, research showed the association between greater market volatility and lower heart rate variability, which is a proxy for lower emotion regulation (Appelhans & Luecken, 2006), as well as a trader's experience and higher heart rate variability, implying better emotional regulation (Fenton-O'Ccreevy et al, 2012).…”

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confidence: 99%

Effect of emotion regulation difficulties on financial decision-making.

Rekar¹,

Pahor²,

Perat³

2023

Journal of Neuroscience, Psychology, and Economics

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Emotion regulation is one of the factors affecting the performance in the financial markets and has been used as an explanation for some of the more puzzling economic behavior, with difficulties in regulating one’s emotions being associated with worse outcomes in trading and tasks that involve heuristics and biases. Using an investment task, a sunk cost task, and a three-item version of a cognitive reflection test (CRT), we wanted to inspect if emotional dysregulation, as measured by the Difficulties in Emotion Regulation Scale (DERS), would explain the results and if there are specific area(s) of emotion dysregulation that are more problematic for decision-making. The results indicate that for sunk cost and logical tasks (which comprise CRT), the difficulties in engaging in appropriate strategies for regulating emotions are related to diminished performance. Additionally, gender differences were observed. Among women, difficulties in maintaining goal-directed behavior and difficulties in engaging in emotion regulation strategies were related to poor performance on the CRT, whereas for men it was related to falling prey to the sunk cost effect. The main contribution is showing which facets of difficulties in regulating emotions, as measured by DERS, are related to performance on CRT, a financial sunk cost task and a complex financial task.

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mentioning

confidence: 99%

Effect of emotion regulation difficulties on financial decision-making.

Rekar¹,

Pahor²,

Perat³

2023

Journal of Neuroscience, Psychology, and Economics

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Intuit What You Need

Galanto

2021

Advances in Psychology, Mental Health, and Behavioral Studies

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One research question guided the autoethnographic inquiry: “What is the experience of intuition and immersion in the Holotropic Breathwork community?” The experience of intuition and Holotropic Breathwork are subjective. An autoethnography is proposed to allow focus on personal and evocative narratives of the author. Specifically, Jones, Adams, and Ellis method for autoethnographic data analysis was followed to bring the reader into the experience while being vulnerable. Data analysis revealed (1) appropriate set and setting, (2) mutual support, and (3) self-trust as salient themes. Future considerations to inform possible alternatives and integrative methods for coping with anxiety, depression, and enhancing quality decision making given the experience of intuition and immersions in the Holotropic Breathwork community are discussed.

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Intuition, expertise and emotion in the decision making of investment bank traders

Cited by 2 publications

References 22 publications

Effect of emotion regulation difficulties on financial decision-making.

Effect of emotion regulation difficulties on financial decision-making.

Intuit What You Need

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