Alexander Gerchik
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Alexander Gerchik in Alexander,

Why is trading good for cerebral activity?

1. First, stock trading is excellent exercise for the brain, getting the most out of the brain every day.

• a variety of tools are analyzed;

• the data from these tools synthesize with one another, offering a whole picture of the market;

• conclusions are reached; and

• decisions are made.

Every day a professional trader performs wave analysis of various pairs, analyzes the synthesis of all timeframes and their interdependence, determining the directions of impulse and correction, points of reversal and calculates all possible bullish and bearish scenarios. A trading plan is made up with advance forecast points to step in and cash out. The trader calculates how much of a deposit is needed for a deal (the size of a lot and the number of lots) and the degree of possible risks.

Every day a trader absorbs heavy flows of information, which our brain needs to process and sort out.

2. Second, this is a perfect opportunity to train yourself in self-control.

An objective of every person who would like to become a professions trader is to reduce dependence on emotions and to learn how to master self-control. A trader needs to curb his fears, euphoria, dependence on the market, greediness, risk proclivity, gambling instinct and a host of other feelings.

To remind, emotions constitute a responsible visceral part of the brain, which burns energy from the neocortex. While learning how to control oneself, a trader can learn how to control emotions, i.e. how to use mental resources not to express emotions, but for cerebral activities.

3. Third, development of personality:

- This contributes to personal responsibility and discipline. A trader is self-employed. He has no boss behind his back to report to. A trader is accountable only to himself and punishes himself. And, believe me, there’s nothing more difficult than to be your own boss. By nature, people are weak-minded and inclined to appease themselves and their weaknesses. And how hard it is to get people to obey themselves! It’s far more difficult than for a boss who can fire an employee at any time.

- Hardships encountered by a trader, failures of various sort temper the trader’s will and urge him to be self-disciplined. Will and discipline helps a trader not to give up when difficulties arise and commit to pursuing goals.

4. Fourth, surveys show that the left cerebral hemisphere is dominant for most people, while the right half needs additional training. In the course of trading, it is the right cerebral hemisphere, the one responsible for the perception of the overall picture, that receives training. Markets are analyzed, a plethora of details is reviewed, and the right cerebral hemisphere puts these elements together. No doubt it can be said that training of this sort may substantially alter our thinking, our opinion about life and mentality.  As a result of training, the right cerebral hemisphere will begin to operate differently, producing a new viewpoint on many things, which we’ll begin to look at from an absolutely different angle, pooling everything, which was previously just details, into the overall picture.

Author: Rasa Chistoviene

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