Competition: Win a copy of The Chimp Paradox by Steve Peters
To win a copy of The Chimp Paradox, read the review and email us with where you think we are in the market cycle.
Managing our emotions is an everyday challenge. Steve Peters’ The Chimp Paradox helps us to understand the decisions we make that leave us scratching our heads wondering ‘What on earth was I thinking?”
The Chimp Paradox – Key takeaways
Feelings vs facts
In The Chimp Paradox, Peters explores the concept of our chimp brain and our human brain – which often go to battle during the decision-making processes. The chimp brain, he says, is fuelled by impressions and feelings, while the human brain is fuelled by facts surrounding a situation. Unfortunately, it’s usually chimp brain that takes control of our immediate reactions.
Feelings cannot be changed but they can be managed
Our chimp brain is not always very helpful, and most of us would like to learn how to use it to ensure we make better decisions consistently. The key, Peters puts forward, is to resist the urge to fight it; instead, listen to it and acknowledge it’s there.
Accepting that listening to your chimp brain (and acknowledging feelings) is a normal part of our thought process, but you don’t need to follow its sometimes irrational advice. Accepting this will make it easier to listen to our human brain and process the facts.
Planning is not enough, act
Often, feelings will be in direction conflict with the facts – therefore once you’ve set a goal, the struggle can be actually achieving that goal without biases. The chimp part of your brain will find a way to talk you out of following your plans to achieve success. For example, it will tell you it’s too risky, you’re too tired, or you don’t have enough time for it.
Focussing on those goals obviously doesn’t guarantee success, but rather than letting the chimp brain win by stopping you from achieving your goals, allow your human brain to take in all of the facts.
Applying The Chimp Paradox to your practice
Our emotions are unpredictable, but The Chimp Paradox outlines simple techniques that you can incorporate into your daily life to manage the unpredictable. For example, by understanding that your emotions – and investors’ emotions –, play a huge part in behaviours, you can add more value to your client relationships. Aim to target your clients’ human brain by presenting them with hard facts to help guide their decisions. Embrace data and try to navigate conversations away from emotional responses – which, although perfectly natural – will jump start the chimp brain.
Peters’ The Chimp Paradox offers insights that will certainly enable you – and your clients – to make better decisions on a daily basis.
Win a copy of The Chimp Paradox
How are you feeling about investing and markets today?
To win a copy, take a look at how markets can influence investors emotions with our Cycle of Market Emotions interactive tool and email us with where you think we are in the cycle.
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