Yerkes-Dodson Law

I have enrolled in training with Jared Tendler today.

He does a great job addressing the balance of tension I spoke about in The Integrated Trader.

Apparently it has a name, the Yerkes-Dodson Law.

Understanding the Curve

The law suggests that we perform best at moderate levels of arousal. When we're too relaxed, we lack the focus and energy needed for peak performance. When we're overstressed, anxiety clouds our judgment and impairs decision-making. The optimal zone sits in the middle—alert and engaged, but not overwhelmed.

For traders, this means finding the balance between complacency and panic. The market demands attention and quick thinking, but excessive stress leads to emotional trading, overreaction to market movements, and abandonment of well-planned strategies.

Thanks Jared Tendler , this course has been great so far.