trading

Change Your Environment, Change Yourself

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(Edi­tor’s note: one of the most com­mon ene­mies of get­ting qual­i­ty cog­ni­tive exer­cise is being on The Daily Trading Coach, by Brett Steenbarger“men­tal autopi­lot”. I recent­ly came across an excel­lent new book, titled The Dai­ly Trad­ing Coach: 101 Lessons for Becom­ing Your Own Trad­ing Psy­chol­o­gist, by trad­ing per­for­mance expert Dr. Brett Steen­barg­er, which explic­it­ly calls for address­ing the “men­tal autopi­lot” prob­lem in his Les­son 4. Even for those of us who are not traders, Dr. Steen­barg­er advice pro­vides excel­lent guid­ance for peak cog­ni­tive per­for­mance. Dr. Steen­barg­er gra­cious­ly gave us per­mis­sion to share with you, below, Les­son 4: Change Your Envi­ron­ment, Change Your­self. Enjoy!).

Human beings adapt to their envi­ron­ments. We draw on a range of skills and per­son­al­i­ty traits to fit into var­i­ous set­tings. That is why we can behave one way in a social set­ting and then seem like a total­ly dif­fer­ent human being at work. One of the endur­ing attrac­tions of trav­el is that it takes us out of our native envi­ron­ments and forces us to adapt to new peo­ple, new cul­tures, and new ways. When we make those adap­ta­tions, we dis­cov­er new facets of our­selves. As we’ll see short­ly, dis­crep­an­cy is the moth­er of all change: when we are in the same envi­ron­ments, we tend to draw upon the same, rou­tine modes of thought and behavior.

A few months ago I had an attack of acute appen­dici­tis while stay­ing in a LaGuardia air­port hotel await­ing a return flight to Chica­go. When I went to the near­est emer­gency room at Elmhurst Hos­pi­tal out­side Jack­son Heights, Queens, I found that I was seem­ing­ly the only native Eng­lish speak­er in a sea of peo­ple await­ing med­ical care. After some dif­fi­cul­ty attract­ing atten­tion, I was admit­ted to the hos­pi­tal and spent the next sev­er­al days of recu­per­a­tion nav­i­gat­ing my way through patients and staff of every con­ceiv­able nation­al­i­ty. By the end of the expe­ri­ence, I felt at home there. I’ve since stayed at the same air­port hotel and rou­tine­ly make vis­its into the sur­round­ing neighborhoods—areas I would have nev­er in my wildest dreams ven­tured into pre­vi­ous­ly. In adapt­ing to that envi­ron­ment, I dis­cov­ered hid­den strengths. I also over­came more than a few hid­den prej­u­dices and fears.

The great­est ene­my of change is rou­tine. When we lapse into rou­tine and oper­ate on autopi­lot, we are no longer ful­ly and active­ly con­scious of what we’re doing and why. That is why some of the most fer­tile sit­u­a­tions for per­son­al growth—those that occur with­in new environments—are those that force us to exit our rou­tines and active­ly mas­ter unfa­mil­iar challenges.

In famil­iar envi­ron­ments and rou­tines, we oper­ate on autopi­lot. Noth­ing changes.

When you act as your own trad­ing coach, your chal­lenge is to stay ful­ly con­scious, alert to risk and oppor­tu­ni­ty. One of your great­est threats will be the autopi­lot mode in which you act with­out think­ing, with­out full aware­ness of your sit­u­a­tion. If you shift your trad­ing envi­ron­ment, you push your­self to adapt to new sit­u­a­tions: you break rou­tines. If your envi­ron­ment is always the same, you will find your­self grav­i­tat­ing to the same [Read more…] about Change Your Envi­ron­ment, Change Yourself

Your Trading Brain: Expert or Novice

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We had the for­tune to inter­view Dr. Brett Steen­barg­er on Enhanc­ing Trad­er Per­for­mance and The Psy­chol­o­gy of Trad­ing as we launched our Neu­ro­science Inter­view Series.

Below, Expert Con­trib­u­tor Dr. Jan­ice Dorn pro­vides an in-depth brain-based dis­cus­sion of the top­ic, con­clud­ing that “The brain is the most pow­er­ful struc­ture in the known uni­verse and the only trad­ing tool that the trad­er needs to become an expert.”

No mat­ter whether you are a Pro or Ama­teur Trader…this will cer­tain­ly exer­cise your brain! (Dr. Dorn is prepar­ing more arti­cles on trad­ing per­for­mance and the brain…so stay tuned).

This is Your Brain On Trading

– By Dr. Jan­ice Dorn

The open­ing bell sounds, and six­ty mil­lion traders enter the great­est are­na in the world to do bat­tle with each oth­er. They put their mon­ey, beliefs and skills on the line as they make deci­sions to buy and sell. Wel­come to the finan­cial mar­kets where bil­lions of dol­lars are won and lost every day. Volatil­i­ty com­pels all to engage their brains in the con­tin­u­ous process of deci­sion mak­ing. What sep­a­rates the win­ning from los­ing traders is the way they use their most pow­er­ful trad­ing tool—the human brain.

[Read more…] about Your Trad­ing Brain: Expert or Novice

Cognitive training research: MindFit, Lumosity, Posit Science, Cogmed

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The field of com­put­er-based cog­ni­tive train­ing (part of what we call “Brain Fit­ness”) is start­ing to get trac­tion in the media and becom­ing an emerg­ing indus­try, and we are hap­py to see how a grow­ing num­ber of researchers and sci­ence-based com­pa­nies are lead­ing stud­ies that will allow to bet­ter mea­sure results and refine the brain exer­cise soft­ware available.

Pub­lished new research

  • Com­put­er­ized work­ing mem­o­ry train­ing after stroke‑A pilot study. A pub­lished study on how Cogmed work­ing mem­o­ry train­ing may help stroke patients. See the ref­er­ence at Cogmed Research page (and full arti­cle here)
  • The Jour­nals of Geron­tol­ogy pub­lished a series of relat­ed papers in their June issue, includ­ing this by Kar­lene Ball, Jer­ri D. Edwards, and Les­ley A. Ross on The Impact of Speed of Pro­cess­ing Train­ing on Cog­ni­tive and Every­day Func­tions, J Geron­tol B Psy­chol Sci Soc Sci 2007 62: 19–31.  Abstract: “We com­bined data from six stud­ies, all using the same speed of pro­cess­ing train­ing pro­gram, to exam­ine the mech­a­nisms of train­ing gain and the impact of train­ing on cog­ni­tive and every­day abil­i­ties of old­er adults. Results indi­cat­ed that train­ing pro­duces imme­di­ate improve­ments across all sub­tests of the Use­ful Field of View test, par­tic­u­lar­ly for old­er adults with ini­tial speed of pro­cess­ing deficits. Age and edu­ca­tion had lit­tle to no impact on train­ing gain. Par­tic­i­pants main­tained ben­e­fits of train­ing for at least 2 years, which trans­lat­ed to improve­ments in every­day abil­i­ties, includ­ing effi­cient per­for­mance of instru­men­tal activ­i­ties of dai­ly liv­ing and safer dri­ving per­for­mance.”

Ongoing/ start­ing research