Philips has come up with an emotion sensor which will warn share traders when they are too emotional to buy or sell shares.

The prototype which is being developed with financial giant ABN Amro is a wrist band which warns traders when emotions are likely to interfere with their financial acumen and distort the wisdom of buying or selling shares. The EmoBracelet, measures electrical signals from users' skin to assess their emotional state. It is a bit like a portable lie detector.

The gear is being targeted at online traders who have double the number of deals as those who traded through a broker. But they earn lower returns because of poor decisions. When they are driven by fear, they may sell too hastily when share prices drop. Driven by greed, they may be overenthusiastic.

The EmoBracelet and another device, an EmoBowl, use electrical displays to show a person's emotional intensity. If they are sending a warning traders know to step back and take a breather by alerting them to their heightened emotional state.

As a wearer's emotions grow more intense, lights flicker faster on the bracelet and the colours inside the bowl change from a soft yellow to orange to red.