Chapter 1

Brain-Compatible Trading

IN THIS CHAPTER

Bullet Seeing how human evolution has impacted financial decision-making processes

Bullet Looking more closely at the trader brain

Bullet Understanding neural circuits and biochemical processes

Bullet Tracing the miracle of neuroplasticity

Bullet Using process orientation for success

In this chapter, I take you way back — way, way back. Across millions of years, the evolutionary selection process has made us humans what we are today. We must take that knowledge into account when we’re surprised about behaviors that no longer fit in our modern time — including behaviors on the trading floor. To better understand what’s going on, it pays to take a closer look at the trader brain. (I hope to convince you that this closer look will provide some answers.) Modern brain research has made some exciting discoveries about how the decision-making process actually takes place — which parts of the brain are involved and which biochemical processes occur simultaneously, for example. ...

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