Trading books: EQ vs IQ - emotional intelligence in trading with Mark Shipman
What does a trader need more: inherent intelligence and high IQ, or the ability to manage their emotions? Mark Shipman, a successful speculator, and IG client, says it is the emotional intelligence that makes traders succeed. Discussing his book “EQ vs IQ” with IGTVs Jeremy Naylor, Shipman reveals concepts of psychology that can sabotage a trader, such as a ‘concord fallacy of sunk cost’ and ‘confirmation bias’. Shipman tells anecdotes from his own experience in a dealing room, for example, when his line manager was sacked for hiding a losing trade, or when Shipman accidentally made money, having read a price chart upside down. The two also talk about what coping strategies traders can develop to improve their emotional response to a loss. Shipman, who is also trained hypnotist,argues for ‘positive visualisation’ as, he says, seeing yourself successful is enormously powerful. He also talks about neurolinguistic programming, and how he can spot a good trader by the way they speak. Any opinions, news, research, analysis, prices or other information contained does not constitute investment advice.