The document discusses the analogy between human emotions and the wave-like structure of stock market prices, suggesting that both follow an 8-wave pattern. It highlights the contrasting emotional experiences of mountaineers and investors, emphasizing the psychological challenges faced during climbs versus financial investments. The conclusion points to the complexity of emotions, advocating for the use of metaphors to understand and manage these emotional responses.

1. Emotions in Action
Ali Anani

2. A Brief Reminder
• Few months back I published a
presentation entitled “Consultative Selling
and Customers’ Needs Identification“, in
which I speculated that human needs
follow an 8- wave structure similar to that
we observe for the price waves of any
stock market.

3. A Brief Reminder- 2
• In the same presentation I modified and
extended Maslow’s pyramid of needs into an 8-
structured wave-like pattern.
• The rationale behind this thinking was based on
the behavior of the stock market and that an 8-
wave structure of price movement is
accompanied with changing emotions. An eight
wave structure of price changes required a more
complex wave of emotions and needs and a
pyramidal structure fails to meet this requirement

4. A Brief Reminder- 3
• Bas de Baar was quick to recognize the
fact by commenting “I think it is an
intriguing idea. If the behavior of the stock
market is driven by human emotions and
the behavior of the stock market is wave-
like, by use of complexity, human
emotions are wave like”

5. A New Evidence
• I was fortunate during my web search for
something else that my eye caught the graph in
the next slide representing the change of
mountaineers’ emotions at different climbing
altitudes
• The graph is republished (with kind permission)
from an article entitled “Mountaineering:
physiological and psychological training” by
Peak Performance”

6. Mountaineering: physiological and
psychological training

7. The Wave-Like Structure of
Mountaineers’ Emotions
• Inspection of the previous slide
shows how emotions of
mountaineers follow a wave-like
structure.
• Is this any different from the wave
structure of investors’ emotions?

8. The Contrasting Swing
• There is a contrasting difference here between
the mountaineers and investors in the stock
market
• Mountaineers increasingly suffer as they labor to
the peak of a mountain. In contrast, investors get
joyful as they climb up the mountain of profits.
• The reverse is true. Mountaineers get relaxed
and less stressed, whereas investors fall into
despair

9. Prepare Your Self To Prepare Your Emotions
Before
1 Investing or
Climbing
2 During the
Climb 3 Post the
Climb
Management of Go up in slow steps. Learn your
expectations. As Physiological and lesson and
you go up prepare emotional changes build communicate
yourself for up. Beware of emotional your
physiological and mix and overlap. The experiences
emotional changes. more your body gets
Be ready before stressed, the less
your start climbing immune to these
the mountain. changes you become.
Watch out for team
members’ emotions

10. Comparing the Climber Wave and
the Investor Wave
Physiological
needs change
with the altitude.
They are not
fixed. Actually,
they do not
disappear upon
moving to a
higher need level;
in contrast, they
intensify. Are
emotional needs
any different?

11. The Ripple Effect
• You are not climbing the mountain (investment
mountain or the physical mountain) alone.
• The emotional and physiological changes you
experience ripple to your neighbors.
• Emotional ripples may feedback to you and your
feelings intensify. Anger may turn into disgust,
for example.
• Intensification of basic feelings generate
secondary and tertiary feelings

12. Emotional Bifurcation
• The higher a mountaineer (investor)
climbs, the more hopeful he/she gets to
achieving his goal with the simultaneity of
facing increased risk of falling and its
greater negative impact
• This generates a quick bifurcation
between greed and fear. This was
discussed in my previous presentation
here at slideshare.

13. Emotional Bifurcation- 2
• The rapidity of bifurcation might lead to
chaos or new order
• The desire for achieving a goal will be in
conflict with the fear of falling. Fear
dominance might tip the balance and lead
to unpleasant outcomes.

14. Emotional Bifurcation- 3
• The outcome is complex as mountaineers
influence each other. The emotional
landscape is full of the euphoria, the
despair, the passion, the dreams, and
the desires that make us human
• Is this a type of quick bifurcation
(branching) sickness? Or emotional
cycling?

15. More Analogy
• Investors herding happens when investors
constantly watch their fellows, alert for
every clue of what they will do next. The
difference is that there is no leader. The
crowd is the perceived leader, but it
comprises nothing but followers. When
there is no leader to set the course, the
herd cues only off itself, making the mood
of the herd the only factor directing its
actions

16. Conclusion
• Emotions have a complex landscape. The
direct study of this landscape as I showed
in a previous presentation is
advantageous
• Emotions have a coast-like boundary and
cannot be measured precisely. The more
you zoom on this coast, the more you
discover. Refer to my presentation
entitled, “The Cost of the Emotional Coast”

17. Conclusion- 2
• The use of metaphors is helping in
charting out the complexity of emotions.
This presentation compared the emotional
stock markets with the emotions of
climbing mountains. The analogy is
consistent with my previous presentation
that emotions have a wave-like structure