Sunday, 21 June 2015

Changing Your Trading, Changing Your Brain





An excellent article from Alvaro Fernandez takes a look at how cognitive neuroscience and technology are creating an explosion of apps for the brain.  There's an important recognition in this work:  that in changing ourselves, we change our brains.  Nothing in coaching or psychology works--no journaling, no goal-setting, no self-affirmations, no attempts at discipline or self control--unless it results in our rewiring.

If you are trying to change something in your trading, the key question to ask is:  Am I going about this change in a way that is likely to rewire me?  If not, the change won't stick.  Sticking with the same wiring and hoping for different outputs is a formula for frustration.

Cementing a change in trading--or in any other facet of life--requires two things:

1)  A fundamental shift in state of mind and body - The most efficient (if not the most constructive) learning occurs during trauma:  a single event can alter personality in fundamental ways.  Successful change creates positive traumas.

2)  Repetition - Doing new things the same way over time is what turns positive changes into positive habits.  We know we have achieved rewiring when we have cultivated new habits.  If a change is something you are working on, you know you haven't reached rewiring.  It's when changes become habits that they are truly part of us.

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