Posts Tagged: Brain

MRI’s of Succesful Traders

10 July 2014 - 15:53 pm

I’ve seen this study making the rounds on several websites now as a type of neuroeconomic confirmation of Buffetological principles…

Perhaps procedure might be slightly useful as a means of seeing physical brain improvement by training– such as that found through meditative practices.

“Traders who buy more aggressively based on NAcc signals earn less. High-earning traders have early warning signals in the anterior insular cortex before prices reach a peak, and sell coincidently with that signal, precipitating the crash. These experiments could help understand other cases in which human groups badly miscompute the value of actions or events.”

“Neuroeconomists Confirm Warren Buffet’s Wisdom”:

“Seeing what’s going on in people’s brains when they are trading suggests that Buffett was right on target,” says Colin Camerer, the Robert Kirby Professor of Behavioral Economics at Caltech.

That is because in their experimental markets, Camerer and his colleagues found two distinct types of activity in the brains of participants—one that made a small fraction of participants nervous and prompted them to sell their experimental shares even as prices were on the rise, and another that was much more common and made traders behave in a greedy way, buying aggressively during the bubble and even after the peak. The lucky few who received the early warning signal got out of the market early, ultimately causing the bubble to burst, and earned the most money. The others displayed what former Federal Reserve chairman Alan Greenspan called “irrational exuberance” and lost their proverbial shirts.

5 Types of Brain

06 July 2014 - 11:03 am

Five Types

To summarize, there are five general brain types. Among traders and investors, the three most important brain types are Compulsive, Impulsive and Anxious.

People with Compulsive Brains tend to get stuck in a particular thought about the market. “It’s too high.” “It’s too manipulated.” “It’s too risky.” It’s too…” whatever. People with Compulsive Brains tend to operate entirely on their own terms and are generally not open to feedback or other options.  

People with Impulsive Brains are the exact opposite. They are unpredictable and lack impulse control in trading/investing and in daily life. Without much discipline, they start many more projects than they finish. They live for creativity and for what’s possible.

People with Anxious Brains live with a rain cloud overhead.  They pay more attention to the obstacles to their own success (or the success of others) than to the ways that something might work. They don’t like to try new things and don’t appreciate novelty. >> Read More


1. Understand the benefit of change. First, ask yourself if you need to change. Then, ask yourself what you need to change. Identify your current habits and ponder the benefits of changing them. Perhaps while trading you are feeling negative emotions such as stress, anxiety, temptation, or frustration. And ultimately, these emotions cause you to make poor, impulsive and self-destructive decisions. Write down what would happen if you were no longer feeling such negative emotions. That is, what would happen if you were able to remain calm and clear-headed while trading?

2. Dissect the proposed change and benefits. Find as many holes in the prospective change as you can. Don’t just convince yourself that things will become better if you change. Make sure the grass actually is greener on the other side of the fence. Be clear about what you want to change and how you will go about it. Write down the benefits that will take place if you do indeed change.

3. Recognize the situation that triggers your self-destructive action. Write down those all-too-familiar conditions, or circumstances, that lend themselves to activating negativity within you (e.g., all the things done, or said, that push your buttons). Also, write down how you are going to consciously recognize them during the day as they happen. Now, next to each item, write down what systems and processes you will implement to avoid letting that situation become emotional. >> Read More



You are your own third opponent. And, you may be the opponent you understand the least of all three. It is more than time constraints, lack of discipline, and asymmetrical information that challenges you. The biggest disadvantage you have is that melon perched atop your 3rd opponent’s neck. It is your big ole brain, and unless you do something about it, it is going to lose all of your money for you.

See it? There. Sitting right behind your eyes and between your ears. That “thing” you hardly pay any attention to. You just assume it knows what it’s doing, works properly, doesn’t make too many mistakes. I hate to disabuse you of those lovely notions; but no, sorry, it does not work nearly as well as you assume. At least, not when it comes to investing. The wiring is an historical remnant, hardly functional for modern living. It is overrun with desires, emotions, and blind spots. Its capacity for cognitive error is nearly endless. It was originally developed for entirely other purposes than risk assessment in capital markets. Indeed, when it comes to money, the way most investors use those 100 billion neurons or so of grey matter, they might as well not even bother using their brains at all.

FRIDAY-1st JulyLast close :6227

After Hitting High of 6383 level.Our Down Targets were :

6307—-6288——————6231——–6212 level. (Yes already told yesterday during trading hrs )

Now -What to expect

Below 6212 level if stays for 15-20 minutes ,We see PANIC upto 6155—6136 level.

101% More Details to our Subscribers during trading hrs.

Those Who Bought 6300 put (when no father had said )just 4 days back to buy…see what happened ?

Two days back we told our Subscribers buy 6200 put and Relax.

Today Crucial Trendline … can break and will create PANIC !


Updated at 6:25/08th Oct/Dubai


NF-ASRNot having a plan. Get a plan, who cares if it is bad, start with something. You can build off of it and refine it. You have to be willing to spend the time to make the plan yours. You do not start anything without some level of planning. Trading is hard; your brain spends a lot of time in fast forward, affecting your memory. You can slow it down by having a plan and increase your brains ability to remember.

Thinking trading is easy. It is not, there are times when it can be slightly less difficult after a lot of time, patience, and hard work. When I think to myself “this is easy” I lose my sharpness. My focus is adverted from my goal. I will lose. It may not be on that trade but maybe the next.

Thinking you have finished. There is only one thing that every trade is guaranteed to give me: a chance to learn about myself, the market, and the interaction between the two. You have to be willing to be relentless in your learning. It will enable you to learn the cheapest.


Last Close :5860

NF-1309Yesterday Intraday ,We Recommended to Sell  NF below 5915 level with Tgt of 5796-5756 level.

(It kissed low of 5825 & closed at 5860 )

Now -What to expect

Above 5865 if sustains for 10-15 minutes then rally upto 5890—5898—5910 is possible.

Support & Down Targets at 5805–5795 level.

Now Break below 5795 with volumes and sustains for 20 minutes watch panic upto 5756 level.

7DEMA @ 5742 level.


Any Rally ,Sell is our Mantra from Last 3 Days (Between 5900-6150 ,Sell Sell Sell )

Buy 5900-5800 PUT ,Buy 5400 Put and Just have Patience


Two Gaps to be filled :1st @ 5706 & 2nd @ 5475 Level.


Nifty Future :Will it CRASH to kiss 5750——————5690 First or Will kiss 6000-6050 in next few Days !

From 16th Onward (time wise )we are not Bullish upto Month end ,Yes but will trade according to trading levels only.

More Details ,Intraday levels to our Subscribers

Updated at 8:08/13th Sept/Baroda/India


NF-ICON-ASRWill- Phrases include: “The market will..” and “I will make money”. Once again the market does not like to be told what to do. It is the bratty kid screaming at the tops of his lungs. The word “will” relaxes your mind, similar to “should”, people use it to be lazy instead of a black background in an otherwise light picture. You can do everything right and still lose money. That is why trading is so effective at diminishing confidence. In most every activity, if you do everything right you are going to get the desired result. Doing the “right” things is bare minimum. Of course, over time you will get paid for doing the right things but it is never when you think it should be and hardly how much you anticipated.

Won’t- Phrases include: “The market won’t…” or “I won’t make money”. Notice a theme here? You are part of the market, you are not the market. Not getting what you expect, even if it is positive, confuses the brain. If you expect to lose and don’t it is still a bad outcome. The market is a one way walkie talkie, you listen, it talks.

FRIDAY-1st JulyIn Last 48 Hours ,Again Great Money Minted by Subscribers & Readers !

*Day Before Yesterday Recommended to buy NF at 5150 level with Target of  5213-5239

*Above 5239 ,Our Targets were : 5318-5344


5344 is Laxman Rekha ,Crossover will take to 5386 level !It kissed High of  5427 level !!

Real Jackpot was :5200 Call ,Recommended at 31 & Do U know …What happened Yesterday ?

Recommended to Buy 5400 call at 5-6 ,it kissed 21 level.

STILL HUNGRYeyesLast Close : 5416.75

Yesterday ,We had told our Subscribers :Sell NF with stop of 5449 level (Sept series )

Told to Buy 5300 Put at 121 level (Sept Series )

Today ,Not crossing High of  5427 level & TRADES below 5407 level with volumes………………..then ?

Watch Intraday slide upto 5347—-5327 level in hrs only.

Hurdle at  5423—————–5449 level.

LAXMAN REKHA at 5449 level ,Decisive Crossover with volumes and stays above for 30 minutes will take to 5527,5554 level.

More Details ,Intraday levels to our Subscribers.

Updated at 7:29/30th August/Baroda/india


There are about 7 billion people currently living on the Earth. Each and every single one of us has a different perspective regarding anyone and anything. Do you know why? Because everyone has slightly different past experiences and the way we see the world is determined by our memories. Without them, we don’t have a basis to compare to and without a basis to compare, we are lost. We don’t know how to feel. We perceive through association. We associate based on something already experienced.

I distinguish two types of intuition – inherent and acquired. Inherent is the one you were born with and it is the end product of hundreds of thousands of years of evolution aka trying to survive in the fields. We are wired to seek instant gratification without a deeper thought about the future consequences, we are loss averse and stubborn.Intuition

While the inherent (core) intuition is the pre-installed software, each and everyone of us is born with, the acquired intuition is the upgrade we get through life as it is based on everything we experienced. Your brain remembers everything, even if you don’t realize it. Of course you can easily recall only the most vivid memories as depending on your everyday activity the brain has prioritized what is important and what is not. >> Read More

11 Rules for Chart Watchers

20 July 2013 - 11:45 am

LOOKING-CHARTRule 1 - If you cannot see trends and patterns almost instantly when you look at a chart then they are not there. The longer you stare, the more your brain will try to apply order where there is none.

If you have to justify exceptions, stray data points and conflicting evidence then it is safe to say the market is not showing you what you think it is.

Rule 2 – If you cannot figure out if something is bullish or bearish after three indicators then move on. The more studies you apply to any chart the more likely one of them will say “something.” That something is probably not correct.

When I look at a chart and cannot form an opinion after applying three or four different types of indicators – volume, momentum, trend, even Fibonacci – I  must conclude that the market has not decided what it wants to do at that time. Who am I to tell it what it thinks?

Rule 3 – You can torture a chart to say anything you want. Don’t do it.

This is very similar to Rule 2 but it there is an important point to drive home. You can cherry pick indicators to justify whatever biases you bring to the table and that attempts to impose your will on the market. You cannot tell the market what to do – ever.

Rule 4 – Be sure you check out one time frame larger than the one in which you are operating (a weekly chart for a swing trader, a monthly chart for a position trader).

It is very easy to get caught up in your own world and miss the bigger picture getting ready to smack you. It can mean the difference between buying the dip in a rising trend and selling a breakdown in a falling trend.

Rule 5 – Look at both bars (or candles) and close-only line charts to see if they agree. And look at both linear and semi-logarithmic scaled charts when price movements are large. >> Read More


NF-ICONWon’t- Phrases include: “The market won’t…” or “I won’t make money”. Notice a theme here? You are part of the market, you are not the market. Not getting what you expect, even if it is positive, confuses the brain. If you expect to lose and don’t it is still a bad outcome. The market is a one way walkie talkie, you listen, it talks.

Can’t- Phrases include: “The market can’t..” or “I can’t…” or “I can’t lose anymore”. Yes the market can, go look at a chart. Go look at a Fed day or about any chart from 2008. Not only can it happen, it does happen. There are no more once in a lifetime moves in the market. There are and always have been life changing moves. No one ever said trading was easy but at least in the case of futures someone is taking your money. If you think you can’t, you probably wont. The market will take every penny you have. If can take every penny you put at risk. Fix the problem, when you run out of money it is too late.

Impossible- Phrase includes: “It is impossible to make money”. Once again someone, somewhere is making money. It may not end up being an efficient use of your time or capital but it is possible. You are substituting an excuse for execution

FRIDAY-1st JulyLast Close :5966

As Expected in Just 4 sessions from High of 6239 it had Crashed to kiss low of  5952.60 level.

now what to do

Below 6002 level if closes for 3 Consecutive Days ,Watch Nonstop PANIC upto 5859—-5812 level very soon.

(Those who sold NF with stop of 6255 level ,We Think had Made Tons of Money in just 4 sessions )

(Those who Bought 6400 Put at 177 ,199 level…………….Yesterday it crossed 400 level ,Money was doubled in 4 sessions )


Not Breaking Yesterday’s low of 5952 & Trades 5970 for 15-20 minutes ,Watch Rally upto 6024-6042 level in hrs only.

(Minor Hurdle at 5987-6006 )

3 DEMA @ 6044 ,7 DEMA @ 6082 level.


Rally if Happens of 50-70 points………………(Sell Sell Sell )

Break below Yesterday’s low with volumes will take to 5915—5899 level in hrs.


Those ,Who sold NF with stop of 6255 & Bought Put of 6400 ….(Do U think ,They are in need of Money now for next few weeks ? )

This Way our Followers had accepted Trend Following and are not feeding to Pigs and are avoiding Blue Channels ,Fundamentals,Economy Data ,Corporate Results (most unreliable in India )

101% ,Will Update More to our Subscribers during trading hrs.

Updated at 7.40/24th May/Baroda

Why Men Forget Things

18 May 2013 - 15:43 pm

Have you ever wondered how a woman’s brain works? Well…’s finally explained here in one easy-to-understand illustration:



Every one of those little blue balls is a thought about something that needs to be done, a decision or a problem that needs to be solved.  >> Read More

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Technically Yours,
Team ASR,
Baroda, India.