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Neuroplasticity: Your Brain and Your Trading – #AnirudhSethi

Neuroplasticity – HOPES Huntington's Disease InformationIn Neuroplasticity: Your Brain and Your Trading, we will explore how Neuroplasticity can help traders create a more accurate trading system. Neuroplastic is the ability of your brain to adapt to its surroundings and change through experience. Neuroplasticity is an exciting new area of research in which scientists are studying the ways that our brains change over time with various types of input.

Mental training has been shown to be a powerful tool in improving performance on tasks from memory recall, math calculations, motor skills, creativity, decision-making, and many others. Neuroscientists have found that mental training increases gray matter volume in specific areas of the brain responsible for those skills.

 

##What is neuroplasticity and how does it affect trading?:

 

In the world of neuroscience, babies are like sponges. They process data twice as fast and their brain is still developing due to new neural connections that form in response to stimuli. The thing about brains—they can adapt! Imagine what it would be like if your left speech center was damaged after an accident or stroke; you could learn how to use your right side instead because they’re always adapting with time (talk about a tough feat).

Your brain is more awesome than we even thought: not only does it have all this processing power but also some cells called “mirror neurons” which help us understand other people’s actions by simulating them ourselves–in short, mirror neurons make imitation easy for our children while giving adults empathy skill.

The conventional wisdom once said that we could never recover from the loss of brain cells, but now research has shown that you can grow new ones. For instance, if a senior is injured or ill they will experience significant changes to their neural pathways in response and this makes up for lost neurons by creating more connections between healthy neurons so everything can be sorted out again! (more…)

TRADING IS WAR. PREPARE YOUR WEAPONS

SUN TZU gives a very clear and succinct reason for his military treatise in the first three sentences when he says,

“The art of war is of vital importance to the state.  It is a matter of life and death, a road to either safety or ruin.  Hence it is the subject of inquiry which can on no account be neglected.”

Here is my interpretation for traders: 

“The art of trading is of vital importance to the success of the trader.  It is a matter of financial life and death, a road to either consistent profits or significant loss of income.  Hence it requires much thoughtful study that cannot be neglected.”

 SUN TZU and THE ART OF WAR                       THE TRADER and THE ART OF TRADING

Important to the StateImportant to the trader
A matter of life and deathA matter of financial life or death
Road to safety/ruinA road to consistent profits/significant losses
Subject of inquiry not to be neglectedSubject of thoughtful study not to be neglected

As we continue to explore SUN TZU’s ART OF WAR, keep the above table in mind for everything that follows in his treatise will be shaped by SUN TZU’s foundational premise, which is this: since war is a given fact whoever engages in it best be prepared because the warrior’s very survival is at stake.

Trading is war.  If you have been trading long enough I do not have to convince you that it is so.  Thoughtful study of the market and how we relate to it is the key to our success and our very survival.

Stuck in line at airport? The humble ant can help you

Some scientists are trying to find answers to human problems by unlocking the secrets of fish schools and insect swarms, applying their behavioral patterns to ease congestion at airports or perfect self-driving technology. 

Bottom-up communication 

“The way this job is being done now is worse than how ants would do it,” Katsuhiro Nishinari, a professor at the University of Tokyo, often tells executives.

Nishinari has worked with 10 companies in areas such as manufacturing and logistics to research how to improve business practices. He took note of ant behavior while studying the mechanisms behind gridlock and now tests ways to apply it to how humans work.

Lines of ants do not need to slow down even when the insects gather en masse to move a big piece of food. “Ants use pheromones laid on the ground to communicate information like in a game of telephone,” Nishinari explained. This bottom-up method lets them “respond flexibly based on conditions,” he said.

The lesson has been applied in the customs area at Narita Airport near Tokyo, where the number of immigration counters had not kept up with the surge in foreign visitors, leading to long wait times. Nishinari helped develop a solution that involves sharing detailed information among airlines, the airport operator and the Ministry of Justice. (more…)

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