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NeuroInvesting: Build a New Investing Brain by Wai-Yee Chen

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CHAPTER 4

Beating Impulsiveness

When the emotional brain is happy and healthy, a person will be more at ease with his- or herself and the way that he or she invests. Where do we get help, though, if our emotional brains are not in their optimal state?

Look no further than the self. We each have all the help we need within our whole brains. There are even more neuro-colleagues that our emotional brain can call on.

Taut and Alert

To keep the bow string stretched taut in a state of tension and be alert and accurate with our aim is not difficult, but requires both awareness and practice. Left on its own, tension in the bow will ease. The investor is at risk and vulnerable to being pulled to and fro between the extremes of the Impulse Meter.

Those who score low on impulse will miss gains and opportunities while those dominated by impulsiveness may not make the best decisions. Both miss the target.

To be taut and ready to release the arrow, the investor needs to work at tweaking his or her emotional brain and get the appropriate help where needed from the other parts of the neuronetwork.

Once the tension is maintained, neurons adapt and remember; muscles and emotions are trained. Constant practice gets them working like automatic machines. They are on alert to act, adjust, and move to protect and pounce where required and when needed.

This is the state we want to work toward in our investing habits.

The Effect of Serotonin

The effect of serotonin causes the investor to remain on the ...

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