New Hope for Emotional Traders!

Published on October 15, 2009

The best investors are those who have a combination of a calm and rational temperament and a fundamental grounding in value oriented investment principles.  For those who lack a rational temperament, rather than falling into despair and the arms of an index fund manager, there is hope!  The Economist reports that a bracelet is under development which can detect emotional patterns and warn against emotion driven decisions!

The Rationalizer, which is still under development, consists of a bracelet that measures something called a galvanic skin response. This is a change in the electrical resistance of the skin which can be caused by various stimuli, like anger or elation. It cannot determine if the emotional arousal is negative or positive, only that it is happening.

The bracelet transmits its measurements to the “EmoBowl”, a saucer-like object which displays a moving light pattern to illustrate the user’s mood. If the person becomes emotionally aroused, the light pattern becomes more intense and turns from a soft yellow to orange. By the time it reaches a deep red, the makers reckon, it might be wise for an online trader to take a break and cool down.

No word yet on whether next version of The Rationalizer will take this a step further by applying electro-shock therapy for those found to be offending the rules of rational trading. 🙂

New Hope for Emotional Traders!
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