Fascinating discoveries about the maturing brain and how they can benefit trading

 
 

Bet you haven't heard of him?

And why would you?  

But what he discovered is nothing short of appealing to mature traders.

See:

Gene Cohen was a founding director of the Center on Aging for Health & Humanities at George Washington University. 

His research on the cognitive and emotional health of older adults discovered something astounding:

 

Your brain's capacity for processing information peaks much later in life. Certain genes activate only by experience enabling the brain to remodel itself over time.

 

These changes completely unlock 3 thinking types - but not before your 50's.
 

  1. Relativistic thinking

  • You can synthesise different perspectives.

    Ever felt trading was contradictory? In trading, it means your ability to see between those differing views to extract the opportunity to exploit. 

 

  1. Non-dualistic thinking

  • You consider opposing views without judgement. 

    Trading begins when you consider what the other participants think of your position.

 

  1. Systematic thinking

  • Thinking is characterised by flexibility, originality and fluency in generating ideas. 

    These are prerequisites for coming up with uncrowded trades - i.e. trades that pay you.  

 

What are the two elements of trading?
 

  1. Developing your game plan

  2. Executing your game plan during 'game time'

 

And while point 2 requires skill, it's your game plan, your ideas, your ability to identify unique opportunities... that differentiate between making or not making money. Right? 


And at the heart of point 1 are the three thinking types. It's fantastic news for mature traders because you're in your prime. 

So:
It's no longer a question of what we can do despite our age. It's about what we can do because of our age - especially for trading. 

 

Except there is one not-so-small detail... 

You need the resources, experience, and skills:

  1. So you can develop ideas that lead to uncrowded trades

  2. Replicate a playbook of strategies with edge to take advantage of the uncrowded ideas.

  3. To achieve ongoing, consistent trading.

 

Is there a shortcut?

Well, No and Yes...
 

No - there is no getting around the above.
Yes - the fastest way to competency in points 1, 2 and 3 is trading at a professional firm or working with a mentor with a professional firm background to replicate someone already there. 

Want more?

👀 👂  Watch or listen to a podcast interview and discover how to trade using the professional trading firm approach. 

👉 Watch or listen here

 
Adam Fiske