Denise discusses the use of emotional context on CNBC Asia.
In 2003 at a Starbucks in NYC’s Hell’s Kitchen, Denise was talking to another trader about what neuroeconomics was learning about the brain, emotions and decisions. This turned to be what did NOT work in trading psychology – the misunderstood mantra of “control your emotions”. Having just finished updating her University of Chicago Master’s thesis for academic publication, Denise itemized how most of the conventional wisdom regarding rationality versus emotion was wrong.
The trader told her she had to write an article. She replied “who will publish an article by me?!” The next thing she knew, she was speaking with a investing magazine’s editor and she had the opportunity to temporarily be what she originally wanted to be when she grew up – a magazine writer. When the article ran in late 2004, her phone began ringing with inquiries about coaching.
Over a decade and hundreds of traders, portfolio managers, risk managers and private equity investors later, her message about the role of feelings in thinking is catching on. We teach all kinds of risk takers how to rethink thinking itself. In doing so, they realize they are making much better risk judgment calls.
In 2010, McGraw-Hill convinced Denise it was time she wrote Market Mind Games which has now been called “a veritable Rosetta Stone of trading psychology”, “game changing, “A decade ahead of its time” and maybe most importantly, “the missing link between theory and practice” in Behavioral Finance.
Along the way, Denise added a team of coaches all of whom are trained in a more accurate understanding of how our non-conscious thoughts and emotions influence us. ReThink’s theme for 2014 is “Behavioral Alpha” – alpha derived from improved perception.
Bill Long added the second consulting practice of alternatives investment research to ReThink in 2012. In 2014, he earned the Financial Risk Manager (FRM) designation from GARP – The Global Association of Risk Professionals and passed the Level 1 of the CAIA – Chartered Alternative Investment Analyst. As a deeply unconventional thinker, his new practice fits very well alongside our non-traditional trading psychology practice.