Often when I discuss candlesticks with other traders, I get a kick out of seeing the proverbial light go on for them, as they begin to share in my excitement about these fascinating patterns. Recently, I became aware of something that may help explain why the pursuit of knowledge can be just so engaging.
The Infovore
So, just why are you reading this blog when you could be sitting on the couch eating chips? As appealing as that sounds, there is a deeper need at work here. It seems that humans are infovores, and actively seek out stimulating new information. The only time this impulse is ignored is when more basic urges of seeking food, a mate, or escaping from a predator takes precedence. The information seeking phenomenon has been the subject of studies by neuroscientists aiming to discover why we get such a kick out of learning.
Utilising the latest MRI and brain-scanning technology, it seems that when people satisfy their craving for new information, it taps into the same pleasure networks as drugs like heroin. Generating a natural high, this can explain why the accumulation of knowledge can be such a pleasurable experience.
The key chemical receptor that is activated while seeking out new information is called a mu-opioid receptor, located on the surface of some brain cells. When stimulated, endorphins are produced, which are basically your body’s happy drug, ensuring that you have an increased desire to repeat the experience. Even information that involves memories of the information gathering can trigger activity in the mu-opioid receptors.
Memories and experiences, which convey the most meaning to the individual, stimulate and release higher levels of endorphins. Fairly soon, a pleasure feedback loop is created, and you crave more and more new information. Unfortunately, for those with couch potato tendencies, this feedback loop is only rarely tapped into, and these people do not discover the drug-like benefits of being an infovore.
Does the Effect Wear Out Over Time?
Unfortunately, yes – the effect wears thin with every subsequent repetition of the information. Reading this article for the second time probably won’t give you as much of a buzz as when you read it the first time. (Unless you didn’t understand it initially, and you needed to read it again to get the gist of the information. In that situation, until you ’click’, you’ll still get a kick out of it). When there is an ‘ahhahhh’ moment where the penny drops, a burst of endorphins floods your system, and this acts as a reward for maintaining your concentration, especially with complicated subject matter.
Interestingly, this process is also apparent in children. Because kids take longer to click than adults, they feel much more enthusiasm at seeing the animated movie ‘Happy Feet’, or hearing the same bedtime story for the 50th time. (Whereas the adults find this level of repetition a grind, and their endorphins have long since ceased to fire.)
So, from a trading perspective, the moral of the story is to keep pursuing new information, especially if you’re feeling a little jaded by the shenanigans of the market. Read new information, devour that new trading book, and give your endorphins a chance to reinvigorate you. Revel in the feelings you receive by pursuing this incredibly lucrative career.
You and I though – we know what it’s like to revel in learning about the markets, and continually striving to improve ourselves. We realise that the rewards are just around the corner for us if we work as hard on ourselves as we do on our trading plans. With the tools you have in your lap, the support I’m providing to you, and the passion I have to see you succeed, you have everything you need to become an incredible trading dynamo and achieve the results you deserve.
Continue striving for new information. Conquer your fears. Pursue your goals. And I’ll be right beside you, every step of the way.
Get your free copy of Louise Bedford’s trading plan template from (www.tradingsecrets.com.au) and take your trading to the next level. Louise is Australia’s best-selling author of books on the share market and her titles include – Charting Secrets, Trading Secrets, The Secret of Writing Options, and The Secret of Candlestick Charting.
