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The Hour between Dog and
Wolf
During a stint at the Wall Street, the author witnessed this transformation in professional traders who are on a winning streak and indulge in high risk taking. A prudent assessment of risk is replaced by judgments of haughty certainty. Coates argues that making and losing money at the trade markets provokes an overwhelming biological response which can alter behavior. Risky decisions by traders lead to volatile markets, crashes and depressions. The author's background in neuroscience prodded him to look for the explanation of this kind of behaviour in biology. It will be savoured by those interested in interdisciplinary studies who know that the answers we are looking for are found in seemingly unrelated areas. We assume that trade markets are run by economic forces which are rational. It is not as simple. Our biology, our hormones, how we have evolved as human beings has a lot to do with market decisions but biological determinism is not endorsed. Coates recommends how to make stock markets stable, toughen our physiology against ravages of stress and to train our mind and body for challenges of the modern world. Many assumptions are challenged and preconceived notions broken, making the writing vivid. The book has nine chapters, is divided into four parts and has been presented in an easy, story-like language. Biological concepts and market-related jargon are simplified. Well labelled diagrams, exhaustive notes further reading list and index are a help.
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WE have seen it often.
The arrogance of power, the changed body language, the addiction to
authority. We have witnessed the transformation in people who become
rich and famous and acquire positions of authority, be it politicians,
film stars or the neo-rich. As the title says, in the hour between dog
and wolf, that is, dusk, they metamorphose from dog to wolf, from
friendly beings to ferocious ones.