Trading and The Emerging Science of The Brain IV

BarroMetrics Views: Trading and The Emerging Science of The Brain IV

Today we complete the series.

The final attribute of the brain is the conscious mind’s inability to focus on more than one item at a time without suffering diminution of the quality of the outcome. Note there is a difference between the routine matters performed by the subconscious and the complex issues dealt with the conscious.

The subconscious can multi-task and does so effectively and efficiently but not so the conscious mind.

We can now summarise an optimal process for trading analysis:

  1. Either early in the day or later in the evening when we are primed for mental work.
  2. Develop a check list that involves a nesting of ideas. Like a mindmap, we start with the core ideas and move down to the finer details.
  3. Previous research suggests that we adopt a process that involves distinct right and left brain activities.
  4. At each stage of the right brain process, the key is the generation of ideas; at each stage of the left brain process, the key is to organise, prune and evaluate the trading ideas.
  5. At each stage of the left-brain focus we focus on one issue at time.
  6. During the analysis session, transferring our thoughts to paper helps to promote clearer thinking.

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