No need to say brain is the integral part of a professional trader, brain can make or break the traders life.
We learn each and every aspect of trading , technical analysis fundamental analysis and some how we try to fail when it comes to hitting the trigger, we cant recognize that elusive ‘somehow’, this is the brain our own mind playing the games with us.
Technical analysis is based on crowd psychology, irrational behavior, greed traps, we put it those things on chart, brain is the vital link. Think about it, do we implement what we thought before? How many times we self doubt? How many times it happened every thing is perfect and u making a killing in a position and fear of loosing ‘elusive profits’ make u square off the position only to see you would have made lot more than what u got in bargain ? in live market how many times we get confused on whether to apply this logic of or that logic of TA ? one same indicator can show buy and sell to same person depend on his perception of looking at it, doesn’t brain plays the trick game here ?
Right brain Left brain
When we trade then it involves decision making process, decision making process has involved combine processing of left side and right side of the brain, right brain help us to recognize the pattern, the market structure whats really going on? are the dimensions of the market changing ?, what was higher price in last bull market is it still higher compare to changed bearish condition? Left brain evaluates the risk involved behind the trade, quickly calculates resistance, profit booking targets, it analyze the chart and gives the message in the form of mathematical probability of possible break out etc.. this is the very basic fact about brain makes it hard to build successful black box ( automate trading s/w ) we can be our black box and we can be our own programmer if we achieve the perfect balance between two hemispheres.
if we toss the coin & there are 5 consecutive ‘head’ then at next flip of coin probability of tail increases? Does it mean that 5 times it was tail now higher chances of head? No ? every time we flip the coin probability of head is always 50/50 , same way we wont able to assess our own risk/reward ratio in absolute terms, we miss lot of good opportunities, don’t take the action when its called for ..
We lift weights to build muscles we can exercise our brain to improve functionality of brain..most research proves that indeed its possible to train the brain.. behavioral science developed in past decade or so which store the immense possibility of improving our brain functionality, infact neuroeconomics is the new branch in science is attracting most of the scholars.
I have this interest in psychoanalytical drugs and neuropsychiatry, so naturally trying to cover the most important factor of traders life, and will try to post the links, material on brain training, puzzles, interesting discoveries etc...
Try to say color..like where you see the color red say red not word
We learn each and every aspect of trading , technical analysis fundamental analysis and some how we try to fail when it comes to hitting the trigger, we cant recognize that elusive ‘somehow’, this is the brain our own mind playing the games with us.
Technical analysis is based on crowd psychology, irrational behavior, greed traps, we put it those things on chart, brain is the vital link. Think about it, do we implement what we thought before? How many times we self doubt? How many times it happened every thing is perfect and u making a killing in a position and fear of loosing ‘elusive profits’ make u square off the position only to see you would have made lot more than what u got in bargain ? in live market how many times we get confused on whether to apply this logic of or that logic of TA ? one same indicator can show buy and sell to same person depend on his perception of looking at it, doesn’t brain plays the trick game here ?
Right brain Left brain
When we trade then it involves decision making process, decision making process has involved combine processing of left side and right side of the brain, right brain help us to recognize the pattern, the market structure whats really going on? are the dimensions of the market changing ?, what was higher price in last bull market is it still higher compare to changed bearish condition? Left brain evaluates the risk involved behind the trade, quickly calculates resistance, profit booking targets, it analyze the chart and gives the message in the form of mathematical probability of possible break out etc.. this is the very basic fact about brain makes it hard to build successful black box ( automate trading s/w ) we can be our black box and we can be our own programmer if we achieve the perfect balance between two hemispheres.
if we toss the coin & there are 5 consecutive ‘head’ then at next flip of coin probability of tail increases? Does it mean that 5 times it was tail now higher chances of head? No ? every time we flip the coin probability of head is always 50/50 , same way we wont able to assess our own risk/reward ratio in absolute terms, we miss lot of good opportunities, don’t take the action when its called for ..
We lift weights to build muscles we can exercise our brain to improve functionality of brain..most research proves that indeed its possible to train the brain.. behavioral science developed in past decade or so which store the immense possibility of improving our brain functionality, infact neuroeconomics is the new branch in science is attracting most of the scholars.
I have this interest in psychoanalytical drugs and neuropsychiatry, so naturally trying to cover the most important factor of traders life, and will try to post the links, material on brain training, puzzles, interesting discoveries etc...
Try to say color..like where you see the color red say red not word
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