Leading Investor upon Emotional Arousal

“Dan Ariely,” a well-known psychologist, studied emotional arousal. In this study, he investigated the man’s strongest emotional arousal, which was sexual desire.

Ariely et al. asked the students 19 questions about their sexual orientations, such as their proclivity for abnormal sexual behaviors, betrayal, respectful relationship, and legitimate relationship.

First, the questions were asked in a normal, cold environment, and the majority of students chose a legitimate relationship as a result. Following that, Ariely piqued the students’ sexual interest by showing them erotic images. The students’ responses to the 19 questions were completely different this time. The likelihood of betraying a life partner increased by 136%, and the proclivity for abnormal sexual behaviors increased by 72%.

Ariely came to the conclusion that arousal of other emotions, such as anger, jealousy, hunger, and so on, reduces the potential for controlled behaviors.

A successful investor learns how to follow investment rules and when not to invest due to emotional arousal in order to reduce the risk of failure. Greed arouses emotions and, if not properly controlled, can lead to disaster.

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