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Daily Speculations The Web Site of Victor Niederhoffer & Laurel Kenner Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter; a forum for us to use our meager abilities to make the world of specinvestments a better place. |
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Kim Zussman
11/08/04
Beginner's Luck and Neuroplastic Monks
Friday WSJ Begley science column discusses interesting research in
neuroplasticity, the recently discovered brain capacity to change circuitry
with experience. Physical example includes pianists who practice many fast
arpeggios and develop difficulty moving index and middle fingers
independently since the brain changes to consider both fingers as one.
Advanced MRI scanners and EEG brain wave monitoring are used to study
plasticity.
Richard Davidson of U. Wisconsin* convinced the Dalai Lama to donate Tibetan
monks for study. Monks, who practiced meditation over 10,000 hours, were
compared with novice meditators. Both groups were asked to "compassion
meditate"; a state of consciousness of loving kindness for all beings.**
The monks showed far greater gamma-wave activity than the novices, which is
thought to represent ability to knit together far-flung brain circuits.
Furthermore, the meditating monks showed dramatic waves not previously
reported in literature, as well as a sprawling circuit that switches on
normally when observing suffering. Monks with the most hours of meditation
showed the greatest changes.
So it is possible to shape brain function not only as result of experience
and external stimuli, but also through discipline of thought such changes
may be attained internally. Beyond further elucidation of religion, does
this type of learning have application to trading?
1.Defeating behavioral finance foibles such as loss aversion,
representativeness, etc., which drive the herd
2.Study of meditational states (Dr.Brett's biofeedback?) apropos to trading
success
3. Learning what the 7000 hedgies are doing without seeing their positions
4. Lotus position at the monitor
There is also the inverse consideration of beginner's luck: It is possible
that in many cases learning and experience paradoxically defeats objectives.
In trading, for example, do short-term moves and resultant hope or dispair
mold brain activity to make the wrong decisions if the goal is long-period
profits? (gamma waves canceling alpha waves).
Kim
* Davidson, R. J., Kabat-Zinn, J., Schumacher, J., Rosenkrantz, M., Muller,
D., Santorelli, S. F. et al. (2003). Alterations in brain and immune
function produced by mindfulness meditation. Psychosomatic Medicine, 65,
564-570.
*Davidson was named fellow of Wisconson Academy of Arts and Sciences:
"News flash: we can harness our emotions to improve our physical and mental
well-being. For that powerful message we can thank Richard Davidson, a
professor of psychology and psychiatry who was one of the first Western
scientists to recognize the value of Eastern spiritual practices in physical
and mental health. His research on brain function and the impact of
meditation on emotional health has taken him to highest peak of the
Himalayas to study the brain waves of Buddhist monks-work that has earned
him the respect and friendship of the Dalai Lama, who has visited Davidson's
Madison laboratory along with a number of monks who participated in studies
there-to the cubicles of ordinary Wisconsin employees to alleviate the
damage of stress in their lives. Davidson was the youngest person ever to
receive the Distinguished Scientific Contribution Award from the American
Psychological Association, one of the highest awards one can receive in
psychology. His groundbreaking findings and prolific writings have won him
numerous honors and placed him at the top of his field, and he has been
profiled and widely quoted in such popular publications as Time, Newsweek,
and the The New York Times."
**An escape for uncontrolled feelings of compassion has now been opened for
the
election-shattered seeking flight to open-armed north
(http://tinyurl.com/5jzs4)