When we communicate verbally with one another, we string together words to express our thoughts, opinions, and expressions. When we combine the right words in the right way, we can use storytelling to educate our clients and inspire them into action. But are there words advisors should avoid using with clients? In our industry, there is a wide vocabulary of terms and acronyms we use casually with our peers and other financial professionals (alpha and beta are a couple that come to mind). But do our clients understand these terms? Most don’t, and we shouldn’t expect them too. We need to use relatable words with which to communicate with clients.

Have you ever stopped to think about why or how you made a decision? Was it your logic, intuition, emotion, pressure, or routine? Or were you simply following direction from someone else?

In The Hour Between Dog and Wolf, John Coats, former trader turned neuroscientist, says that testosterone and cortisol may be the reasons why men seem to be riskier traders. Testosterone boosts competitiveness and can result in a willingness to take risks. And in times of crisis, cortisol helps deal with stress. This combination—overconfidence, competitiveness, and reactive behavior—may lead to more frequent trading and higher trading costs compared with that of women investors.