NYSE: Emotional Control Sharing Trading Psychology
Artemis A. Styliadou *
Faculty of Law, Maastricht University, Maastricht, Limburg, Netherlands
Simona P. Williamson
University of Melbourne, Parkville, Melbourne, 3010 VIC, Australia
*Author to whom correspondence should be addressed.
Abstract
A real-world problem in stock markets is always the emotional control. Obviously, the real question is how to “control” the bad emotions and feelings (e.g. fear and greed), just before the execution orders, rather than to “eliminate” them. In order to address the emotional control problem, this article introduces the innovative concept “Emotional Control Sharing Trading Psychology, ECSTP”, which has been defined as a collaborative trading engineering term. Then, an empirically-tested approach (statistical analysis) is performed in order to initially evaluate the proposed term in real-world NYSE trading strategies as far as the returns are concern. The evaluation result shows an up to 29% improve in returns after the adoption of the proposed term. The implications of the proposed trading approach are pointed to better and more stable decisions with the cost of groupware coordination and communication problems. Always, a well designed and organized collaborative intervention improves groupware efficiency and effectiveness for investment decisions.
Keywords: Groupware, investor emotions, traders emotions, trading psychology, NYSE, collaborative trading engineering