Right Brain vs Left Brain

[Soultrader]

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]

<<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]

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]

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/for...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]

Originally Posted by ant 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/for...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]

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]

Originally Posted by Soultrader 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]

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

[torero]

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]

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.