True Happiness for Traders – and a Warning...

What does it take to make you happy? Not much, as it turns out! A classic study by psychologist Norbert Schwarz found that even the small joy of finding a ten-cent coin can brighten your day. Imagine walking up to a copy machine and spotting a dime; suddenly, everything feels a bit rosier. That’s the magic of tiny positive surprises.

The people in the study who found a ten-cent coin judged the world more positively than those who didn't find the dime. When asked about their outlook on the world, they reported how they felt in the moment, rather than considering the longer arc of their lives. 

Small positive experiences can boost your mood, even if for just a moment. It’s not the value of what you find. It’s that something positive happened to you. This is called 'emotional blindness'. 

Food Works Too

Grocery shoppers who received complimentary food taste tests reported higher contentment with their TVs in their lounge room than those who didn’t get a snack. A small treat can make everything seem better!

What does this mean for traders? Picture this - you’ve just spotted a ten-cent coin or enjoyed a delicious tasty treat. Your mood lifts, your happiness spikes, and suddenly, the world feels friendlier.

Careful – because you’re more likely to take trades that are suboptimal, just because you’re feeling wonderful.

Weather gone to the crapper? Suddenly this negative fact can ripple through your every area making you feel worthless as a trader, and more likely to self-sabotage.

This is a perfect illustration of why maintaining a level emotional base is crucial in trading. Your decisions need to be driven by a well-defined process, not the whims of your current mood. Emotional highs and lows can lead to impulsive decisions—jumping into a trade because you’re feeling euphoric or bailing out in a panic when fear strikes.