Full transcript of “Neuroscience of Trader's Brain: Rewire Your Brain from Fear to Fearless | Dr. Sweta Adatia”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.
0:00 Greetings. This is Dr. Shitar Ata from the Limitless Brain Lab. At the Limitless Brain Lab, our vision, mission is health, wealth, and happiness for all. Today I am going to be talking only to traders. And you may be wondering why am I talking of a trader's brain? Because there is deep neuroscience in each of us making most of us 99% of the time [music] addicts. addicts to quick money, addicts to trading, addicts to problems. Now, when I interview people and sitting in the clinic, a lot of them say, "I'm stressed because I lost a trade. I'm stressed because I beted I'm stressed because I just, you know, lost my money in the market." And this is a very very common thing. I think postco a
0:45 number of people who have been trading has really increased. Yes, I'm also exposed to trading because my mom used to be a medical field person and then she also was a part-time trader. So, in my house, you know, there's a typical corner where everything is all the red, blue, the charts are all flowing and of course for years together, mom has been doing that. So, she's a pro, she's an ace at it. But when I interview these [music] people, I'm quite intrigued to understand what is that dopamine motivation of earning and what is that loss and how do you go deeper into the loss. So this is actually not a trader story but this is actually the brain of the trader story. Every single person will go through this. And how do you
1:30 avoid that trap? You know the trader's trap. What are the three things that you can do to avoid that trader's trap? Let us understand the brain from the foundations of it and let's build it up so that you don't fall into the trap of the trader's brain. Now the two fundamental emotions with which the brain works is fear [music] and greed. I am fearful that I lose this trade. So most of the times I'm on that watch thing that oh I should not lose this trade. I should not lose this trade. And if I win the trade then I get into the phenomenon of greed. This fear and greed is basically our reptilian emotion. are basic emotion of survive of I want to have the comfort I want to live I want to be in power and control of it. So fear and greed are the two primary
2:16 emotions. [music] Now how can you become fearless and at the same time be contented? This is the game of trading. So you have to go from fear to being fearless and you have to go from greed to gratefulness or contented and this is where a lot of you know people say it is all about willpower. You need to stop trading at a certain time. I say it is not about the willpower. Some people say it is about discipline. Every single day you get into the rigor of the discipline and the best traders stop when the right time, put their stop losses, make sure that everything is correct. But no, it is not about willpower. You often exhaust the willpower very fast. It is not about discipline because nobody can be extremely good at discipline. That is not how the brain is wired. Then what is
3:03 it that is causing us to get from the fear to the fearless state or get from the greed to the contended state so that every single time you're trading your brain is [music] with you. First of all let us understand that the game of trading is only and I'm going to be bold here and say and I want all the traders comments welcome here is [music] 30% skill. Yes, trading is only 30% skill. 70% is emotional. 70% is mental. 70% is real hardcore neuroscience. [music] Now every day when the market kicks in there would be an emotional impulse. There would be an impulsivity which will automatically kick in. You may have developed a structure. You know exactly when to put the trade. You know exactly
3:49 what is the market's movement going to be like. But suddenly when the market comes in that impulsivity kicks in. So this is where the [music] PFC fails. The prefrontal cortex is a classical classical driver and emotional regulator for impulsivity and that is where it fails. The second thing is when it gets into the loss now you want to recover that loss. Now you will further make a loss because you are further recovering that loss and this loop never stops. This is again the PFC [music] failing. Now PFC is about that patience. It is about judging that progress. PFC is taking that break. It is about removing the leg from the accelerator. But when your PFC or your preffrontal cortex and you may be wondering what prefrontal cortex I'm talking about. So
4:35 by the way the brain has three parts. This is the brain stem which is allowing me to breathe and then I have the limbic system or the emotional system which is about the greed, the fear, the flight. Will I win? Well and if I win then I want to win more. So all the limbic system is all here. There's no contentment there. There's no peace. there's no enough the more enough that story is all coming from this part of the brain and then this green part is the [music] preffrontal cortex. So the people who don't have a very good prefrontal cortex are likely to go deeper into the losses likely to be impulsive likely to be having lack of patience likely to be going against the market current. So the three important things to avoid the traders trapped in
5:20 the brain is every single day before the trading uh begins whatever the time be if it's a United States or if it's India, Europe, Germany, Japan it really does not matter spend 5 [music] minutes breathing deep. Spend 5 minutes breathing deep because now your impulsivity will come down. Now your greed and fear will come down and automatically you [music] will start taking better decisions. That's number one. The number two thing, this is pivotal to avoid the trader trap is [music] go ahead and write down the entire plan. Whatever you are going to do for that day, go ahead and put it on paper. You mentally it should be extremely clear and keep an accountability person who will check that this is what you are going to
6:06 follow. So always have that checks and balances in [music] place because at the time you may lose your impulsivity. The third and the last most important thing for anybody is do not do daily trades. Unless you are a seasoned trader, unless you are into the job of trading, do not do daily trades. Why am I saying that? Because a healthy PFC is not remaining healthy all the time. You do go through the waves, you do go through ups and downs, highs and lows. So it is a good practice to basically make a grid where if you have a consistent profit for 2 days go ahead and drop the third day trading. Again go ahead and if you have a loss then go ahead and drop the next day [music] trading because the moment you have the loss your limbic system will remember it as an emotional memory.
6:52 In fact your muscle can also have the memory. In fact your entire body will remember that memory and a loss because we are social animals with aversion to loss. So every single time that that loss will happen, cortisol will spike up, stress will spike up, adrenaline will be high, all your internal chemistry will be screwed up. You will feel restless, you'll feel agitated, you will feel frustrated. But this will keep happening again and again and again. So if you don't do these three things, then 100% your brain is taking to you for a ride. Now before you even jump into the trading please understand that there are certain dos and don'ts of I call it the neurotrading as well because yes I also know a little bit because I see my mom doing that and over and over and over and over again it's a muscle memory that
7:39 you build. Well skills are extremely important. Go ahead and learn from the top experts. Go ahead and learn from the people who have done it who have been there you know who have experimented with it because finally their experiences would be of paramount importance. But any any teacher who is not telling you these behind the scenes story of the brain, it's an incomplete thing because 30 to 40% is only the skill and the talent. The remaining 60 to 70% is managing your trader mind. Is managing that trader's brain, avoiding the trader trap. So please remember these three [music] things that you have to continuously do if you are trading on a daily basis. Go ahead and share this video. go ahead and save this video because I'm sure that if you practice these three things neurologically,
8:25 neuroscientifically, you will save lots and lots of dollars. So if you have been still having depression, anxiety and inability to come out of it or has been struggling with PTSD, do not shy away from meeting a doctor, going ahead and doing a very dedicated customized protocol in which you can be helped with breathing, meditation, some of the supplements and also psychological therapy because the earlier that you do it is better for your brain. So thank you so much for watching this episode. I'm Dr. Shitar Adatya from the Limitless Brain Lab.
