This Is Your Brain On Money

Brain's neurons at work.

Brain's neurons at work.

People change when they’re in love. They talk different. They act different. They even walk different.

Scientists say love can change your brain.

And so can money.

Jason Zweig’s book, Your Money And Your Brain, which I mentioned yesterday, offers lessons in neuroeconomics, a cross between neuroscience, economics, and psychology.

This science is a quest to find how your brain reacts to financial situations.

It might also help you get rich.
Zweig, a writer for Money Magazine, believes that people overestimate their own performance. That might be a nice way of saying when people are successful in seeing trends, they become cocky that they can forecast future events.

It may also have something to do with greed, too. When a stock buyer anticipates a windfall investment, MRI scans reveal the brain changes–almost like it was on a drug.

Emotions cloud predictability.

One thing I disagree with–and I’ll talk more about it tomorrow–is that Zwieg believes the market is truly random. I believe it is highly complex and that complexity disguises itself as randomness.

The investor’s best bet (excuse the pun) is a technology that doesn’t make the same mistakes as the money-crazed human brain and can see executable investing patterns in the highly complex world of finance.

That’s where Online Investing AI is heading.