These 2 Techniques Can Help Improve Your Trading
Several questions have come from readers wanting to know more about
strategies for calming oneself in the markets. Two queries specifically
asked about sound and light machines and their use as biofeedback tools for
building focus, concentration, and “the zone”.Â
Information about sound and light machines can be found on the web, including
the site of the
manufacturer of my unit, Photosonix. It is important to realize that
sound and light machines are not actually biofeedback units. They do not
feed you information about your body’s respiration rate, galvanic skin response,
heart rate, muscle tension, or any other measure of bodily arousal. The
purpose for using them is not, therefore, to train yourself to alter these
readings, although improved readings could be one benefit from their use.
Rather, sound and light machines present synchronized pulses of sound and
light to you through headphones and a set of glasses that contain small light
emitting diodes (LEDs) on the inside. When using the unit, you keep
your eyes closed, but you can still see the flashes of light and–especially
interesting–you can detect colors in the shifting flashes. The theory
behind the sound and light machine is that, if you present slightly different
sound and light frequencies to each ear and eye, the brain will process their
differential frequency. Thus, for instance, a 500 Hz wave to the left ear
and a 510 Hz wave to the right ear will be processed as a 10Hz wave. This
is a frequency not within the normal spectrum of audible sound, and it
corresponds to the frequency of alpha brain waves (normally associated with
calm). Over time, the theory goes, the brain entrains to the frequency it is
processing. This allows the sound and light machine routines to shift one’s state by altering brain
wave patterns. (See the BrainWave
Generator site for a further discussion and an interesting tool).
I am agnostic on the issue of whether or not the sound and light machine
actually changes brain wave patterns over time. One, for example, would
expect sound frequencies that are very close to one another to be processed as
delta wave frequencies that are associated with deep sleep. While one
might find such a sound and light routine relaxing, it does not necessarily act
as a sleeping aid. Nor do I find that frequencies spaced further apart,
which should correspond to the beta waves characteristic of high brain
activation, necessarily entrain states of arousal.
This, however, does not mean that the sound and light machines are without
value. To the contrary, I use my machine both personally and with
professional traders. The unit is highly portable and thus is easy to use
in the trading room. The combination of sound and light creates an
immersive environment that captures the attention of the trader. Combined
with deep, rhythmical breathing and complete physical stillness, I find that the
machine is quite effective in quickly interrupting negative patterns of thought
and emotion and facilitating a focused, relaxed state. The average
duration of a sound and light session is 15-30 minutes, although quick several-minute
breaks can also be useful.
I have found the greatest benefit of sound and light technology in two
trading psychology applications:
- Self-hypnosis – This is where you combine the focused
concentration and slowed, rhythmical breathing with self-suggestions that
can be implemented during the trading day. The sound and light unit,
producing an arresting stimulus that holds the viewer’s attention, is quite
effective as a self-hypnosis induction, particularly when the user freezes the sound
and light at a single low-frequency;Â
- Exposure therapy – This is a short-term technique that
exposes traders to their own fears and frustrations while they remain calm and
collected physically and cognitively. A common treatment for
post-traumatic stress, this robs negative patterns
of their emotional power. The sound and light machine effectively creates an
emotionally neutral stimulus environment that allows traders to reprocess negative
emotional events.Â
These are two of the most powerful techniques for changing behavior patterns
that I know of. Free articles on
my website discuss these and other self-change strategies. Feel free
to email me at sonderstel@aol.com if
you’d like me to post further information on the topics.
Brett Steenbarger
Brett N. Steenbarger, Ph.D. is Associate Clinical
Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical
University in Syracuse, NY and author of The
Psychology of Trading (Wiley, 2003).
As
Director of Trader Development for Kingstree Trading, LLC in Chicago, he has
mentored numerous professional traders and coordinated a training program for
traders. An active trader of the stock indexes, Brett utilizes
statistically-based pattern recognition for intraday trading. Brett does not
offer commercial services to traders, but maintains an archive of articles and a
trading blog at www.brettsteenbarger.com.
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