Right Brain vs Left Brain

[Soultrader 12]

I havent seen a thread that discusses our right brain vs left brain functions and how it relates to trading. I figured I would start it here so Dr. Janice can add her inputs as well.

 

When I first started trading, my trading was based strictly off my left brain. Now this seriously conflicted with the way I traded because I have always been a discretionary trader or a pure speculator. Right brain usage is a REQUIREMENT in discretionary trading.

 

Here is the breakdown between right vs left:

 

Left Brain

 

• Logical
  
• Sequential
  
• Rational
  
• Analytical
  
• Objective
  
• Looks at parts
  

 

Right Brain

 

• Random
  
• Intuitive
  
• Holistic
  
• Synthesizing
  
• Subjective
  
• Looks at wholes
  

 

While struggling as a developing trader, I realized I severely lacked functionality in my right brain because I had never quite used it. (this can clearly be seen in my drawings) However, I started to pick up books and audio tapes that dealt with expanding the right brain and applied it into practice.

 

In my case, writing down my thoughts and insights daily helped me tremendously to grow my right brain. Even since I created this site, by contributing I was able to further expand my creativeness. As a result, alot of my trading now is through my right brain.

 

What are some of the practices and techniques traders use to expand the left or right brain? When does your right or left brain kick in when you trade?

 

James

[Dogpile 10]

<<When does your right or left brain kick in when you trade?>>

 

I am big believer in the 'synthesizing' part. The ability to synthesize evolving price patterns across multiple timeframes and put them into their proper context is the most important trading function in the brain, IMO -- and that is right-side.

[thetradingdoctor 10]

The article I wrote for August SFO mag is an attempt to show how the emotional and rational pathways in the brain work together or don't work together. It is much to simplistic to think in terms of right brain and left brain. It is a starting point to understand that there are high road and low road pathways involved in making decisions. There is a Mr. Spock and a Dr. McCoy inside of each of our brains. I have spoken about this and there is a video I will find which is an introduction to this. I will write more on this as soon as time permits, as it is an excellent subject.

 

Thanks!

 

Doctor Janice

[ant 10]

Hey James,

 

I recommend reading the book "A Whole New Mind" by Daniel Pink. It is a quick and pleasant read that will answer many of your questions, I think. In the book, Pink discusses three forces - Abundance, Asia, and Automation - which should cause people in many professions to re-evaluate their ability to remain competitive as we transition from the "Information Age" to the "Conceptual Age." Pink suggests integrating the left and right hemispheres of the brain and developing six right-brained (R-directed) abilities or senses which he calls Design, Symphony, Story, Empathy, Joy and Meaning. The author also suggests activities to help develop the right brain. I believe that this book should be required reading for all traders, including discretionary and rules-based traders. There is an excellent thread which you started that touches on this topic and where I added my thoughts (http://www.traderslaboratory.com/forums/34/death-of-discretionary-traders-1907-2.html#post12627).

 

To address your question... A mechanical trading system which can be described in a finite set of steps and programmed into a computer utilizes mostly the left brain. In this case, the trader is processing data in a sequential and analytical fashion. A trader who considers market correlation, multiple timeframes, combines economic factors with technical analysis, understands how longs/shorts should be feeling in a market, analyzes the type of trader that is in control of a market, considers where stops are resting, or adjusts his/her trading strategy based on market condition are all examples of right-brained abilities. This requires interpreting and synthesizing different pieces of information, i.e. requires the trader to truly understand market behavior - something computers cannot do better than a human being with the proper skills. James, I would send you my copy, but shipping would cost more than the book itself.

[Soultrader 12]

Hey James,

 

I recommend reading the book "A Whole New Mind" by Daniel Pink. It is a quick and pleasant read that will answer many of your questions, I think. In the book, Pink discusses three forces - Abundance, Asia, and Automation - which should cause people in many professions to re-evaluate their ability to remain competitive as we transition from the "Information Age" to the "Conceptual Age." Pink suggests integrating the left and right hemispheres of the brain and developing six right-brained (R-directed) abilities or senses which he calls Design, Symphony, Story, Empathy, Joy and Meaning. The author also suggests activities to help develop the right brain. I believe that this book should be required reading for all traders, including discretionary and rules-based traders. There is an excellent thread which you started that touches on this topic and where I added my thoughts (http://www.traderslaboratory.com/forums/34/death-of-discretionary-traders-1907-2.html#post12627).

 

To address your question... A mechanical trading system which can be described in a finite set of steps and programmed into a computer utilizes mostly the left brain. In this case, the trader is processing data in a sequential and analytical fashion. A trader who considers market correlation, multiple timeframes, combines economic factors with technical analysis, understands how longs/shorts should be feeling in a market, analyzes the type of trader that is in control of a market, considers where stops are resting, or adjusts his/her trading strategy based on market condition are all examples of right-brained abilities. This requires interpreting and synthesizing different pieces of information, i.e. requires the trader to truly understand market behavior - something computers cannot do better than a human being with the proper skills. James, I would send you my copy, but shipping would cost more than the book itself.

 

Hi Ant,

 

Thank you for your recommendation. I did a quick search on amazon and found a different interesting books also written by Daniel Pink called, A Whole New Mind: Why Right-Brainers Will Rule the Future. Are you familiar with this? Im debating which one to read at the moment. Thanks

[ryounkin 10]

I realize that there is a certain "Star Trek" qulaity to what I am going to suggest, but it seems to work for me.

 

If you put on a set of headphones and play specific tones, you can induce specific brainwave. You want an alpha meditative state? Play a 10hz isochronic tone in your ears and you've got alpha. This is called "brainwave entraiment" and nearly all forms of entrainment balance the two hemispheres. This is the concept behind Silva Ultramind Control System among others.

 

I use a $50 program called Neuro-Programmer from Transparent Corp. Google it, you might find it helpful.

 

Buck

[ant 10]

Hi Ant,

 

Thank you for your recommendation. I did a quick search on amazon and found a different interesting books also written by Daniel Pink called, A Whole New Mind: Why Right-Brainers Will Rule the Future. Are you familiar with this? Im debating which one to read at the moment. Thanks

 

James, that's the same book I was recommending - an excellent read.

[Soultrader 12]

Thanks Ant. I will order it and read it over the weekends sometime.

[torero 10]

Mind Over Markets touched very briefly on this subject. I agree it takes a while to rewire the left to the right or vice versa. I think in order for my right brain to be creative from constant information without interruption from the left brain, I write down in advance on the chalk board the rules made by the left brain to remind the right brain of its obligations. I think this is why writing down the trading plan and keep sticky notes and other reminders do so well to help improve trading and eventually become second-nature-- when the 2 finally work together in harmony.

[PYenner 10]

One of the first "rules" I read about trading was that intuitive traders inevitably fail, a paper system is the only option.

It is good to see that many disagree.

I tend to see any paper system as liable to be or to become inadequate.

They amount to turning off your brain and trading like a robot.

It would be nice if you could leave it to a robot, we could all retire with ongoing income.

[PYenner 10]

This is an article on intuition, I wish it had more to say.

A search brings up other articles but I haven't looked at them yet.

http://www.psychologytoday.com/articles/pto-20070424-000001.html

 

For me the final go/wait judgement on a trade seems intuitive.

Judging risk, deception and reliability of signals.

I rely on it because it seems crucial, but I don't exactly know where it comes from and that makes it seem like a gamble or wishful thinking. It does rely heavily on experience and not just pattern recognition, its like everything I know being weighed all at once. Yet I don't "know" what it is, only parts of it can be itemized. It is good to see it being taken seriously anyway.

[PYenner 10]

http://www.psychologytoday.com/articles/pto-20021209-000001.html

One more.

[thetradingdoctor 10]

The role of intuition in trading has long interested me, and there have been a couple of articles written about it. I believe that intuition is a learned phenomenon that eventuates from a deep sense of trust in self. The more "successful" one is re: outcome, the more that process is entrained in the brain as intuition. Some traders have what they call a "feel" for the markets. I don't think they wake one day, having never studied the markets, and instantly get that "feel." It appears, rather, that said "feel" is borne from thousands of hours of screen time through ever-changing cycles. Patterns repeat. It is the same in life. You get a "feeling" about someone or something that is going on. It appears to come from your "gut" and you may actually feel sensations in the abdominal area. This is due to the communication from the vagus nerve ( one of the cranial nerves that originates in the brain ) down into the abdominal organs. In naturopathy and other non-allopathic medicines, the gut is considered a second brain. That said, I think that intuition ( unlike instinct) is likely a learned phenomenon. We will need brain imaging studies to disprove this. As you are aware, in science, it is always about disproving, rather than proving. An hypothesis is an hypothesis until it is disproved

Tuesday, I will be presenting a webinar that has received almost no publicity. It will be at woodiescciclub.com at 4:30 PM est. It will be the first time I have presented to this particular group, so I don't know what to expect, how many will be there ( given the absence of publicity), etc.

 

Hope you are all having a great holiday and taking time to share and care with loved ones.

 

Thanks

Doctor Janice

 

[PYenner 10]

Good luck with the webinar Doc.

 

Looks like the public might be able to eavesdrop... but 1,000+ people??

Might have to communicate with pit signals...

Let us know how it went.

[PYenner 10]

An "alumni" audience will be difficult to anticipate.

 

On talkback radio your clinical experience seemed to kick in and have you delivering the goods.

 

Remember to bring yourself flowers.

[Guest cooter]

Tuesday, I will be presenting a webinar that has received almost no publicity. It will be at woodiescciclub.com at 4:30 PM est.

 

Was there a link to login to woodies to join your webinar this afternoon? I'd didn't see anything listed at that site for your webinar.

[PYenner 10]

Cooter

The seminar was in the "main room", yeah where is that?

The first time I entered a chat room there was some conference software to install and a reboot required. Then I couldn't find any main room, just rooms 1 to 4, with 4 being the likely room but password locked at the time.

 

Today I went to go into the first chat room, some more to DL then bingo, Doc doing an audio/visual, instead of the chat room. I was late getting in, Doc had ISP problems, my conference software also locked up. So it turned into a no go and maybe by the time they get the bugs sorted out things will have started to make more sense.

 

Woodies seem to rely on chat for advertising events, ok for insiders, confusing for noobs.

 

Doc

What I saw looked good, seemed to get a good reception too.

Funny how the challenges in life tend to come from the unexpected directions. No idea how the numbers panned out. Looks like we may all get a second go at this one.

[Guest cooter]

Hope there's an archive available somewhere then. The thought of downloading and opening unknown .exe files for a chat room doesn't thrill me in the least.

Thanks for sharing.

[PYenner 10]

If there is a second attempt it will probably go in the archives.

But this one got defeated by technology mess ups.