Quantifying Mind - Quantifying Mind The Neuropsychology of Trading Brett N Steenbarger Ph.D Note This is a version of a posting to the SpecList

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Quantifying Mind: The Neuropsychology of Trading Brett N. Steenbarger, Ph.D. Note: This is a version of a posting to the SpecList from April, 2003. Abstract: This is a lengthy posting on brain activity as it relates to trading. While recent advances in functional magnetic resonance imaging are revealing important brain- behavior relationships, such research is difficult to conduct with traders. Use of thermal biofeedback holds particular promise in objectively quantifying the degree to which individuals are engaging in executive cognitive functions. Preliminary data suggest that such biofeedback accurately discriminates between haphazard/discretionary and rule- governed/mechanical trading methods. One of the traditional challenges research psychologists have faced is the reliance upon the self-report of experimental subjects for data on such variables as moods, intentions, etc. With the advent of functional magnetic resonance imaging (fMRI), it has become possible to track cerebral blood flow patterns among subjects as they perform various tasks. This allows researchers to see which areas of the brain are activated during standardized tasks that draw upon particular cognitive functions. Such standardization is necessary when assessing the functioning of particular patients. For instance, a task called the PASAT (Paced Auditory Serial Addition Test) presents subjects with a series of numbers. Each number in the series is followed by n seconds of silence before the next number is presented. The task is for subjects to add the series of numbers mentally. This tests auditory processing speed, attention, and calculating ability. By obtaining fMRI pictures of normal subjects engaging in the PASAT, we have a sense for the brain regions that are activated when engaged in these functions. When a brain damaged patient is asked to perform the PASAT, the fMRI reveals those relevant brain regions that are not receiving adequate blood flow. Interestingly, when efforts at cognitive rehabilitation are undertaken, the brain damaged patients can regain some of their skill at tasks such as the PASAT. This is corroborated by fMRI pictures that show new regions of blood flow to those brain areas associated with auditory processing and attention. The implications of this work are profound, suggesting that the brain is much more
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This note was uploaded on 08/11/2009 for the course FINANCE Fixed Inco taught by Professor Proflim during the Three '09 term at University of Adelaide.

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Quantifying Mind - Quantifying Mind The Neuropsychology of Trading Brett N Steenbarger Ph.D Note This is a version of a posting to the SpecList

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