Recently, I listened to a very interesting interview with world-class Cambridge neuroscientist John Coates, PhD who was discussing his new book. It focuses on the biology of risk taking and how our actions literally transform our body chemistry. It is fascinating stuff that may begin to explain why so many of us at one time or another have said, “Damn, why the heck did I do that!?”
Coates was a successful Wall Street trader who ran a derivatives desk prior to becoming a scientist. He witnessed behavior during boom and bust that drove men (especially young men) to extremes of euphoria and risky behavior or stress and depression.
He theorized that fear of risk (or lack of it) is closely tied to body chemistry, specifically testosterone. “Through a series of noteworthy experiments, Coates uncovered a feedback loop between testosterone and success that dramatically lowers the fear of risk. At the same time he demonstrated that the level of risk taking in women is more stable”. As well, he found that intense failure causes a rise in cortisol levels, the hormone that raises inhibitions for risk-taking. It seems men do more boom or bust cycles and that women tend to be more stable.
He identifies “the hour between dog and wolf” as the moment traders transformed into highflying risk takers when on a hot streak or more tentative, risk-averse actors when experiencing losses.
When experiencing continuous opportunity or hot streaks some are prone to taking too much risk that can result in failure. Coates has said, “risk concentrates the mind, and the body, like nothing else, altering our physiology in ways that have profound and lasting effects.” Testosterone is designed to sustain risk taking. However, we are not destined to repeat the same mistakes forever. Experience of a trusted advisor helps us sort out acceptable risk if we can remain objective.
How do we take this information and use it constructively? Consider, some are more susceptible to being transformed from dog into wolf. Perhaps we and those close to us can recognize personal tendencies, hot buttons and situations that lend themselves to missteps and their consequences. Use, don’t lose, your mind.
Dr. Kevin Purcell, DC. Dedicated to serving others …