Scientific Finance: are the Sciences useful for Trader’s wellness?

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The necessary Sciences for the wellness – not only economical – of advanced Traders are:  the Complexity Theory, the Game Theory and Cognitive Sciences.

Trading is the Formula 1 of psycho-physical performances due to constant and intense solicitations of our neural and hormonal systems during one of the most complicated and stressful human functions: taking decisions. Trading activities require taking frequent, unexpected and potentially damaging decisions, a very stressful situation.

Feigenbaum Tree diagram

  • So,  thanks to the Feigenbaum Tree diagram, or “logistic map” – a pillar of the Theory of Complexity – think about the following essential trading phases
  • facing up to unpredictable scenarios;
  • seeing the bifurcations and especially the stock attractors in order to understand where every subsequent trend will go;
  • evaluating the “bifurcations” associated to each couple of bull and bear (going up and down) scenarios;
  • deciding the possible result of these scenarios bifurcations, i.e.: buying or selling? And to get a more difficult decision: how much buying and how much selling?

The first two phases – facing up unpredictable scenarios, and seeing attractors and bifurcations – are dealt through the knowledge of physical principles governing the complex phenomena and their natural evolutions. The Complexity Theory is the reference discipline.

The third phase  –  evaluating the “bifurcations” – is dealt through the knowledge of math principles governing dilemmas towards sustainable and optimal decisions. The Game Theory is the reference discipline.

 The fourth phase – deciding – is dealt only through the knowledge of cognitive principles governing our free will and our conscience towards the intentional realization of decisions. Here, Cognitive Sciences are the reference disciplines.

In a nutshell,  it emerges  the “Cognitive approach to complex games”, as stated by Scientific Finance: a summary of these three disciplines to develop the Trader’s scientific awareness on:

  • opportunities to seize and their related best decisions;
  • existential trading costs and possible vaccines against the risks of self-slavery;
  • and, especially, the most important result: a life of wellness, and not only economical.

But, don’t panic: it’s not necessary to be scientist to apply these Sciences; it’s enough to apply some of their fundamental concepts related to Physical Analysis.

Instead of being afraid, relax yourself; this is the real Sciences goal: giving us more serenity coming from the awareness that we are not at the mercy of phenomena around us, and we can ride them without trying to foreseeing them.

This is the most important awareness given by the Theory of Complexity, i.e.: complex phenomena, even if they are known, are absolutely unpredictable, beyond the specific range of predictability delimited by attractors.

So, it emerges for the Trades the real talent in Complexity: be able to imagining – not foreseeing! – possible scenarios before and better than others.

In order to imagine and foresee before and better than others, I suggest you to find time, also for idleness – as suggested by the logician and mathematician Bertrand Russell “Praise idleness”. This is a requirement for creativity, imagination e for dreaming better lives.

So, Sciences are very useful!, as long as you become a Scientific Traders, a ComplexTrader.

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