Archives of “Health_Medical_Pharma” tag

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Reaction in Your Brain When Your Market View Is Completely Wrong

  
  Education
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Eric Barker has a new article (link here) on how to win every argument. The article had a point which made me think whether the same situation happens in trading.

brainSo it quoted an experiment by psychologist Drew Westen, which showed to supporters, footage of their favorite candidates completely contradicting himself. The experiment found that as soon as the people realized that the information contradicted their world view, the parts of the brain that handle reason and logic went dormant, while the parts of the brain that handle hostile attacks – the fight-or-flight response – lit up. Essentially logic gets thrown out the window, and it just becomes a fight where you do anything to win.

A similar situation occurs in trading, when you have a certain expectation of how the market should behave. E.g. you might for various reasons, think that the market will go up. So when the market does not follow what you expect, you might initially make up excuses for it. However when the market continues to go completely in the opposite direction of what you expect, your logic and reasoning centers would shut down, your fight-or-flight response kicks in, you treat it like a hostile attack on you, and you would do anything to win (or not lose), e.g. keep averaging down. I’m sure this sequence of events led to many traders blowing up their accounts. It is pretty interesting that the experiment showed this as a ‘natural expected’ behavior.

As always, trade what you see, not what you think.

Cancer May Soon Be Detected By a Simple Blood Test

  
Education, Life
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A new study is all set to change the course of medical history in the field of cancer detection forever, as it has identified roughly 800 biomarkers present in the blood of cancer patients which can be found out through a single blood test, making early detection of cancer a possible reality in the future.

This study is the very first to comprehensively review and identify cancer-specific blood markers for future clinical development. Almost 19,000 scientific papers were analyzed and more than 800 biomarkers were identified.
This research aimed at using a single blood sample for developing a screening test to identify multiple cancer types. Every type of cancer is known to produce markers in the blood. Therefore, developing a general screening test for many different forms of the disease may be feasible.

Study author Ian Cree, a Cancer Research UK funded scientist at the University of Warwick and University Hospital in Coventry said in a press release, “This is a new approach to early detection and the first time such a systematic review has been done. A single blood-based screening test would be a game changer for early detection of cancer which could help make it a curable disease for many more patients. We believe that we’ve identified all the relevant biomarkers; the next step is working out which ones work the best for spotting cancers.”

The research is poised to be presented at the National Cancer Research Institute (NCRI) Cancer Conference.

How Does the Brain Work?-Video

  
Education, Video
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Dr. Neal DeGrasse Tyson & NOVA science NOW delve into magic and the brain, artificial intelligence, magnetic mind control, and the work of neuroscientist and synesthesia researcher David Eagleman. Can we really believe our own eyes? Will machines one day think like us? Can magnetic wands effectively control brain functions and treat depression?

RISKING

  
  Education
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Trading is all about risk Control !The Following excerpt is from one of my favorite audiotapes ,’Risking ‘by David Viscount.I keep this on my desk to remind me each day to keep “Risking .”Only a person who risks is truly free

To laugh is to risk appearing the fool. To weep is to risk appearing sentimental. To reach for another is to risk involvement. To expose your feelings is to risk exposing your true self. To place your ideas, your dreams before a crowd is to risk their loss. To love is to risk not being loved in return. To live is to risk dying. To believe is to risk despair. To try is to risk failure. But risks must be taken, because the greatest hazard in life is to risk nothing. The person who risks nothing does nothing, has nothing, is nothing. They may avoid suffering an d sorrow, but they cannot learn, feel, change, grow, love, live. Chained by their attitudes they are slaves; they have forfeited their freedom. Only a person who risks is free.

Checklist For Traders

  
  Education
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A) Does your problem occur outside of trading? For
instance, do you have temper and self-control problems at home or in other
areas of life, such as gambling or excessive spending?

 B) Has your problem predated your trading? Did you have

similar emotional symptoms when you were young or before you began your
trading career?

 C) Does your problem spill over to other areas of your life?

Does it affect your feelings about yourself, your overall motivation and
happiness in life, and your effectiveness in your work and social lives?

 D) Does your problem affect other people? Do you feel as

though others with whom you work or live are impacted adversely by your
problem? Have others asked you to get help?

 E) Do you have a family history of emotional problems and/or

substance use problems? Have others, particularly in your immediate
family, had treated or untreated emotional problems?

5 Types of Brain

  
  Education
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Five Types

To summarize, there are five general brain types. Among traders and investors, the three most important brain types are Compulsive, Impulsive and Anxious.

People with Compulsive Brains tend to get stuck in a particular thought about the market. “It’s too high.” “It’s too manipulated.” “It’s too risky.” It’s too…” whatever. People with Compulsive Brains tend to operate entirely on their own terms and are generally not open to feedback or other options.  

People with Impulsive Brains are the exact opposite. They are unpredictable and lack impulse control in trading/investing and in daily life. Without much discipline, they start many more projects than they finish. They live for creativity and for what’s possible.

People with Anxious Brains live with a rain cloud overhead.  They pay more attention to the obstacles to their own success (or the success of others) than to the ways that something might work. They don’t like to try new things and don’t appreciate novelty. (more…)

Trading Difficulties -One Liners

  
  Education
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Trading Difficulties

  • Cut winning trades short even though you know your trade setup is solid.
  • Failed to pull the trigger on a perfectly good trade because of fear of loss.
  • Let losing trades run hoping for a return to breakeven.
  • Added to a losing position in the hope that the market would turn around.
  • Made profi ts in the morning but gave them back in the afternoon.
  • Became more aggressive after losing money.
  • Took unplanned trades when the market suddenly moved.
  • Stopped trading or reduced position size after a loss.
  • Traded greater position size than prudent money management practice would advise.
  • Held trades longer than they should have been held looking for a “home run.”
  • Failed to take a perfectly sound setup because the last two trades were losers.
  • After a day of big profits, your confidence soared and your trading suffered.
  • Consistently made small money but have been unable to elevate your trading performance.

These trading difficulties hurt. They not only hurt your account, but they also cause mental and emotional suffering. No other profession tests your psychology as does trading. These difficulties and unskilled trading behaviors arise from the underlying mental and emotional challenges traders face.

The Development of Mindfulness Skills Helps the Trader

  
  Education
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  • Reduce stress
  • Tame the fear response
  • Counter the strong tendency toward loss aversion
  • Strengthen decision making
  • Strengthen internal emotional regulation
  • Improve and develop emotional intelligence
  • Reduce the dominance of intuitive decision making and cognitive error
  • Increase deliberative attention
  • Better see the market and its trading opportunities
  • Stay on task
  • Overcome the negative‐reinforcing properties of ineffective trading
  • Enhance overall psychological well‐being.

Risk, Reward and Uncertainty

  
  Education
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“From an early age, we are all conditioned by our families, our schools, and virtually every other shaping force in our society to avoid risk. To take risks is inadvisable; to play it safe is the counsel we are accustomed both to receiving and to passing on. In the conventional wisdom, risk is asymmetrical: it has only one side, the bad side. In my experience—and all I presume to offer you today is observations drawn on my own experience, which is hardly the wisdom of the ages—in my experience, this conventional view of risk is shortsighted and often simply mistaken. My first observation is that successful people understand that risk, properly conceived, is often highly productive rather than something to avoid. They appreciate that risk is an advantage to be used rather than a pitfall to be skirted. Such people understand that taking calculated risks is quite different from being rash. This view of risk is not only unorthodox, it is paradoxical—the first of several paradoxes which I’m going to present to you today. This one might be encapsulated as follows: Playing it safe is dangerous. Far more often than you would realize, the real risk in life turns out to be the refusal to take a risk.”

Life is fraught with risk. There is no getting away from it. However we try to control the direction of our lives, there are times when we fail. Therefore, we might as well accept that life is a game of chance. If life is a game of chance, to one degree or another, we must be comfortable with assessing odds in the face of risk.

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