The way we see it, the brain will always win in the end so why not get started as soon as possible on working in concert with a brain and a body that work together to assess and address uncertain situations – price movement or sand traps.
Tag: neuroeconomics
Learn to research and evaluate internal feeling based data. Both value it and beware of the risks it brings – a double edge sword.
Right after “what the heck is psych cap” should come “what the hell is neuroeconomics”? Neuro on one hand and econ on the other? … Could they be more different – microscopic brain cells versus broad based financial interworkings? Having just received (Thanks Sandy!) my copy of NEUROECONOMICS, Decision Making and the Brain, edited by [...]
Someone named Robert Skidlesky wrote a book called John Maynard Keynes: 1883-1946: Economist, Philosopher, Statesman. He says that Keynes said “not all future events could be reduced to measurable risk. There was a residue of genuine uncertainty and this made disaster an ever-present possibility, not a once-in-a-lifetime ‘shock’. Investment was more an act of faith [...]
If you ask a neuroeconomist about the markets, they will say markets are NOT risky. In fact, they are 100% certain that risk is not the issue in markets. What you say? Isn’t that the whole point – judging risk? Well yes… but, well actually no. Let me explain. To a neuroecon type risk = [...]
On The Ubiquitous Missing Information in Markets: What Neuroeconomics Has to Say ‘Ambiguity’ is the Hallmark of Trading and Investing The situation of taking a position when the odds are uncertain because of missing information is referred to by economists as “ambiguous”. F Knight in his book Risk, Uncertainty, and Profit was the first to [...]
On
11.02.08 • In
Learning Psych Cap • by
DKS •
Robert Shiller writes in the New York Times about the role of group-think during the upward phase of our blown-up housing bubble. He recounts the polite discounting of his warnings in Irrational Exuberance (see all of Shiller’s books) and says “speculative bubbles are caused by contagious excitement.” He segues to the remaining gap between economics [...]
Robert Shiller writes in the New York Times about the role of group-think during the upward phase of our blown-up housing bubble. He recounts the polite discounting of his warnings in Irrational Exuberance (see all of Shiller’s books) and says “speculative bubbles are caused by contagious excitement.” He segues to the remaining gap between economics [...]
What do our brains do when a down-trend becomes an avalanche – when some snow gets rolling at the top and picks up steam and snow and speed until it hits bottom – with no regard for anything in its way? Two things to know – First, it tends to assume it will get the [...]
On
09.27.08 • In
Emotions & Decisions • by
DKS •
A professor from Northwestern, Dr. Camelia Kuhnen, who was co-author on the 2005 study showing emotion circuits firing before “deliberative choice” circuits in a simulated stock/bond investing game invited me to this annual meeting of the Society of Neuroeconomics. All of the presentations and something called “poster sessions” review the very latest brain research – [...]