(Editor’s note: one of the most com­mon ene­mies of get­ting qual­ity cog­ni­tive exer­cise is being on “men­tal autopi­lot”. I recently came across an excel­lent new book, titled The Daily Trad­ing Coach: 101 Lessons for Becom­ing Your Own Trad­ing Psy­chol­o­gist, by trad­ing per­for­mance expert Dr. Brett Steen­barger, which explic­itly calls for address­ing the “men­tal autopi­lot” prob­lem in his Les­son 4. Even for those of us who are not traders, Dr. Steen­barger advice pro­vides excel­lent guid­ance for peak cog­ni­tive per­for­mance. Dr. Steen­barger gra­ciously gave us per­mis­sion to share with you, below, Les­son 4: Change Your Envi­ron­ment, Change Your­self. Enjoy!).

Human beings adapt to their envi­ron­ments. We draw on a range of skills and per­son­al­ity traits to fit into var­i­ous set­tings. That is why we can behave one way in a social set­ting and then seem like a totally dif­fer­ent human being at work. One of the endur­ing attrac­tions of travel is that it takes us out of our native envi­ron­ments and forces us to adapt to new peo­ple, new cul­tures, and new ways. When we make those adap­ta­tions, we dis­cover new facets of our­selves. As we’ll see shortly, dis­crep­ancy is the mother of all change: when we are in the same envi­ron­ments, we tend to draw upon the same, rou­tine modes of thought and behavior.

A few months ago I had an attack of acute appen­dici­tis while stay­ing in a LaGuardia air­port hotel await­ing a return flight to Chicago. When I went to the near­est emer­gency room at Elmhurst Hos­pi­tal out­side Jack­son Heights, Queens, I found that I was seem­ingly the only native Eng­lish speaker in a sea of peo­ple await­ing med­ical care. After some dif­fi­culty attract­ing atten­tion, I was admit­ted to the hos­pi­tal and spent the next sev­eral days of recu­per­a­tion nav­i­gat­ing my way through patients and staff of every con­ceiv­able nation­al­ity. By the end of the expe­ri­ence, I felt at home there. I’ve since stayed at the same air­port hotel and rou­tinely make vis­its into the sur­round­ing neighborhoods—areas I would have never in my wildest dreams ven­tured into pre­vi­ously. In adapt­ing to that envi­ron­ment, I dis­cov­ered hid­den strengths. I also over­came more than a few hid­den prej­u­dices and fears.

The great­est enemy of change is rou­tine. When we lapse into rou­tine and oper­ate on autopi­lot, we are no longer fully and actively con­scious of what we’re doing and why. That is why some of the most fer­tile sit­u­a­tions for per­sonal growth—those that occur within new environments—are those that force us to exit our rou­tines and actively mas­ter unfa­mil­iar challenges.

In famil­iar envi­ron­ments and rou­tines, we oper­ate on autopi­lot. Noth­ing changes.

When you act as your own trad­ing coach, your chal­lenge is to stay fully con­scious, alert to risk and oppor­tu­nity. One of your great­est threats will be the autopi­lot mode in which you act with­out think­ing, with­out full aware­ness of your sit­u­a­tion. If you shift your trad­ing envi­ron­ment, you push your­self to adapt to new sit­u­a­tions: you break rou­tines. If your envi­ron­ment is always the same, you will find your­self grav­i­tat­ing to the same Read the rest of this entry »

We had the for­tune to inter­view Dr. Brett Steen­barger on Enhanc­ing Trader Per­for­mance and The Psy­chol­ogy of Trad­ing as we launched our Neu­ro­science Inter­view Series.

Below, Expert Con­trib­u­tor Dr. Jan­ice Dorn pro­vides an in-depth brain-based dis­cus­sion of the topic, con­clud­ing that “The brain is the most pow­er­ful struc­ture in the known uni­verse and the only trad­ing tool that the trader needs to become an expert.”

No mat­ter whether you are a Pro or Ama­teur Trader…this will cer­tainly exer­cise your brain! (Dr. Dorn is prepar­ing more arti­cles on trad­ing per­for­mance and the brain…so stay tuned).

This is Your Brain On Trading

– By Dr. Jan­ice Dorn

The open­ing bell sounds, and sixty mil­lion traders enter the great­est arena in the world to do bat­tle with each other. They put their money, beliefs and skills on the line as they make deci­sions to buy and sell. Wel­come to the finan­cial mar­kets where bil­lions of dol­lars are won and lost every day. Volatil­ity com­pels all to engage their brains in the con­tin­u­ous process of deci­sion mak­ing. What sep­a­rates the win­ning from los­ing traders is the way they use their most pow­er­ful trad­ing tool—the human brain.

Read the rest of this entry »

The field of computer-based cog­ni­tive train­ing (part of what we call “Brain Fit­ness”) is start­ing to get trac­tion in the media and becom­ing an emerg­ing indus­try, and we are happy to see how a grow­ing num­ber of researchers and science-based com­pa­nies are lead­ing stud­ies that will allow to bet­ter mea­sure results and refine the brain exer­cise soft­ware available.

Pub­lished new research

• Com­put­er­ized work­ing mem­ory train­ing after stroke-A pilot study. A pub­lished study on how Cogmed work­ing mem­ory train­ing may help stroke patients. See the ref­er­ence at Cogmed Research page (and full arti­cle here)
• The Jour­nals of Geron­tol­ogy pub­lished a series of related papers in their June issue, includ­ing this by Kar­lene Ball, Jerri D. Edwards, and Les­ley A. Ross on The Impact of Speed of Pro­cess­ing Train­ing on Cog­ni­tive and Every­day Func­tions, J Geron­tol B Psy­chol Sci Soc Sci 2007 62: 19–31.  Abstract: “We com­bined data from six stud­ies, all using the same speed of pro­cess­ing train­ing pro­gram, to exam­ine the mech­a­nisms of train­ing gain and the impact of train­ing on cog­ni­tive and every­day abil­i­ties of older adults. Results indi­cated that train­ing pro­duces imme­di­ate improve­ments across all sub­tests of the Use­ful Field of View test, par­tic­u­larly for older adults with ini­tial speed of pro­cess­ing deficits. Age and edu­ca­tion had lit­tle to no impact on train­ing gain. Par­tic­i­pants main­tained ben­e­fits of train­ing for at least 2 years, which trans­lated to improve­ments in every­day abil­i­ties, includ­ing effi­cient per­for­mance of instru­men­tal activ­i­ties of daily liv­ing and safer dri­ving per­for­mance.”

Ongoing/ start­ing research

• MindWeavers set to launch new ‘brain health’ soft­ware in the UK. “The company’s move into the adult brain health Read the rest of this entry »