10 Controversial Truths From “The Hour Between Dog and Wolf”

The Hour Between Dog and Wolf Summary

👇 The Hour Between Dog and Wolf video summary 👇

The Hour Between Dog and Wolf Lessons

1️⃣ You think with your entire body (not just your brain)

Ever thought about how your brain and body connect when you’re deep in thought? Forget the idea of your brain being the boss in your head – thinking involves your whole body.

Let’s talk hormones. Ghrelin, a hormone from your stomach, signals hunger to your brain when your tummy’s empty. It’s like a dinner bell for your brain.

But here’s the kicker: you’re not forced to obey. If you’ve got strong reasons not to eat, like a diet or fasting, you can resist Ghrelin’s call. But, be warned, Ghrelin can be persistent, like a lobby group getting louder over time.

So, different parts of your body throw signals to your brain. When stress hits, your brain tells your gut to gear up for action – no time for digestion, it’s fight or flight mode. Stress, my friend, is a tag team effort between body and brain.

And guess what? It’s a two-way street. A sensitive gut can mess with your thoughts. People with Crohn’s disease, a tummy issue, get more emotionally charged when faced with emotional stuff.

Show them a sad kid, and their emotions skyrocket more than a healthy person’s would. It’s proof that your whole body, not just your brain, is in on the thinking action.

Onwards.

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2️⃣ Testosterone plays a big role on your actions

Meet testosterone – a big player in the hormone game, and boy, does it influence how we act.

When you’re gearing up for a challenge, like a sports competition, your body cranks up the testosterone. It’s like a performance enhancer, boosting your endurance, metabolism, strength, mood, and even brainpower.

But here’s the twist: it also nudges you towards taking risks, and in certain places, like the cutthroat world of stock market trading, that can spell trouble.

The author digs into how traders’ testosterone levels link to their skills and risk-taking. Surprise, surprise – high testosterone doesn’t make you more skilled; skills come with experience. But it does make you more prone to taking risks, compared to those with lower testosterone levels.

Here’s where it gets interesting – when a risky move pays off, your body celebrates with even more testosterone, creating a loop known as the Winner Effect. Sounds good, right? Well, not entirely. This loop can lead to seriously reckless behavior.

Animals go through a similar drill. After a victorious fight, their testosterone spikes, making them more likely to win the next battle. But it’s not all roses; the winner, fueled by high testosterone, becomes overconfident and dives into risky situations.

The French even coined a term for this transformation: “the hour between dog and wolf” – that uncertain time when it’s hard to tell if you’re safe or in danger.

So, while high testosterone might help animals win battles, it can also push them into overly dangerous risks, shortening their lives. It’s a hormonal rollercoaster where the thrill of victory might just come with a risky price tag.

Moving on.

3️⃣ Your brain anticipates movements

Ever marveled at how you catch a speedy ball without even thinking about it? Well, it’s not just luck; it’s your brain playing the ultimate guessing game because, truth be told, our physiology is a bit sluggish for real-time action.

Blame it on the eye – there’s a tenth-of-a-second delay between something happening, like a ball being thrown, and our brain realizing it. So, your brain becomes an anticipator extraordinaire, predicting where that ball will be mid-air.

A nifty experiment showed this. Picture a circle with blue on the outside and yellow inside, and the yellow part flashing on and off. Move it around, and you don’t see a smooth mix of colors; you see the blue leading the charge with the yellow lagging behind.

Why? Because your brain can forecast the blue part but struggles with the unpredictable yellow flashes. It’s a sneak peek into how your brain foresees moving objects, not in real time but in a mental crystal ball.

But here’s the mind-bender: since actions like catching a ball are automatic, your consciousness is like a spectator in the stands.

In the ’70s, physiologist Benjamin Libet found that when people decided to lift a finger, the brain’s preparation for the action started a good 300 milliseconds before the conscious decision-making part kicked in.

It’s like your consciousness is watching decisions unfold, not calling the shots. So, next time you catch a ball effortlessly, give credit to your brain’s pre-show predictions, with your consciousness just enjoying the game.

Next.

4️⃣ Experience improves your intuition

Ever had a feeling you just knew something, even if you couldn’t explain how? That’s intuition at play, but it’s not magic; it’s your body recognizing patterns in the world around you.

Now, in the high-stakes world of the stock exchange, where predicting market trends is key, intuition becomes a secret weapon. Despite what the Efficient Market Hypothesis says – claiming markets can’t be predicted because news is unpredictable – traders actually can learn to read the market.

To put it to the test, the author checked out the Sharpe Ratio (a stock market success measure) of experienced traders. Surprise, surprise – it was 2.5 times higher than less experienced traders. They consistently made more money than the stock market itself.

Here’s the twist: the most skilled traders were the ones whose Sharpe Ratio kept going up. This led to the conclusion that predicting the stock market is something you can learn.

But here’s the mystery – ask traders how they do it, and they can’t really explain. It’s not a conscious effort; it’s intuition at work, influenced by their automatic physical reactions or Somatic Markers.

Traders pick up on market patterns subconsciously. When they weigh options, their bodies react differently for each choice, creating what feels like a gut feeling.

Even if they can’t put it into words, their intuition guides them to make the right moves in the market. It’s like their bodies have a secret code for mastering the stock exchange game.

Moving on.

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5️⃣ You need stamina and great cognitive skills

Think stock market trading is all about sitting at a desk? Think again. The trading floor is like a gym, filled with young, fit folks, often former athletes.

Why? Because making it in the stock market game demands more than just smarts; it calls for high stamina, laser-like focus, and lightning-fast decision-making.

Picture this: traders scanning screens for tiny price changes – not a walk in the park for your brain. Doing this for hours requires top-notch concentration, and surprise, surprise – physical fitness plays a huge role.

It’s not just about hitting the gym; it’s also about getting the right nutrients, plenty of sleep, and keeping other physiological factors in check.

Speed is the name of the game too. Spot a good trading chance? You gotta move fast. If another trader beats you to it, stock prices go up, and your returns go down.

But there’s more to fitness than meets the eye. It tunes traders into their bodies, helping them read those Somatic Markers – the secret sauce for predicting market patterns. A study even linked “heartbeat awareness” to fitness.

Fit folks aced the test, identifying the rhythm of their heartbeat better than their less fit counterparts.

So, being fit isn’t just about looking good; it’s a prerequisite for successful traders. The stock market demands brainpower and brawn, making it a demanding marathon where the fittest come out on top.

Moving on.

6️⃣ You become overconfident in a bull market

Ever heard of a “bull market”? It’s when stock prices are on the rise, and traders can start feeling invincible. Sounds great, right? Well, not exactly. This seemingly sweet situation can lead to addiction and, you guessed it, even riskier business.

Trading in a bull market is like gambling – both can be addictive because they mess with our dopamine levels, the hormone linked to desire. In a rat study, a little juice made dopamine levels soar.

Over time, just the anticipation of getting that juice triggered dopamine, showing a craving for the next drop. It’s eerily similar to the process in drug addicts and, surprise, surprise, stock traders. Successful risky trades give traders a dopamine rush, making them hungry for more.

But wait, there’s more. When dopamine buddies up with testosterone – the risk-increasing hormone – things get even more interesting. In bull markets or bubbles, testosterone levels rise with each surge of dopamine.

It’s like a double boost – the Winner Effect. Each win feels better than the last, and the cycle keeps going.

As traders keep winning, testosterone levels soar, making them more eager to take bigger risks. And guess what? This can spiral into a vicious cycle. Enough traders caught in this loop, and voilà – a market bubble forms.

It’s a rollercoaster of dopamine, testosterone, and risky business, turning the bull market into a potentially dangerous ride.

Next.

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7️⃣ You become fearful in a bear market

When the stock market takes a nosedive, it’s not just numbers on a screen that suffer; traders, too, bear the brunt. The stress of a market crash triggers a physical reaction in their bodies, making it tougher for them to bounce back.

Enter cortisol, the stress hormone. In a crash, it floods traders’ systems, affecting memory and rational thought. Cortisol skews memory, making traders remember losses more than wins, turning them risk-averse.

It also clouds the frontal lobe, the brain’s rational thinking hub, leading to fuzzy decision-making. Traders, now swimming in cortisol, become more susceptible to market rumors, further fueling fear and risk aversion.

But that’s not all. The locus coeruleus, responsible for selecting what we pay attention to, goes into overdrive. Traders, overwhelmed by signals and noise, struggle to make sense of it all, making good trades an uphill battle.

This physiological rollercoaster leads to irrational behavior, increasing market volatility as traders miss out on valuable opportunities.

And the drama doesn’t end there. Stressful times breed mean behavior. Just like stressed-out dominant males bully weaker ones in the animal kingdom, traders start acting out.

Middle managers might wield the layoff axe before it’s official or drop not-so-subtle hints about staff changes, throwing the whole office into a frenzy.

This not only amps up anxiety but also intensifies the stress response, creating a perfect storm of bad decisions and negative vibes on the trading floor. It’s a crash that extends beyond the numbers, taking a toll on traders’ minds and relationships.

Next.

8️⃣ Moderate stress can toughen you up

We’ve seen how the stress response can lead to bad decisions. But can we do anything to toughen up and reduce the impact of our physiology on our choices? Turns out, we can.

Moderate stress, surprisingly, can be like a training ground for resilience. Studies show that exposing young rats to moderate stress, like being handled by humans, makes them exhibit fewer stress responses as adults and even live longer.

So, when recruiting traders, candidates with a history of moderate stress might handle the trading floor pressure better.

Another stress-busting strategy is physical exercise, especially in cold weather. Exercise releases growth factors that help our neurons grow, strengthening the brain against stress and aging.

Rats exposed to regular cold water swims respond better to stressors, showing greater toughness. The same principle is seen in humans, possibly explaining practices like sauna sessions followed by cold showers in Nordic cultures.

But even the toughest traders can feel the strain. The key is task-switching. Allowing traders to switch between tasks reduces stress and minimizes mistakes. Many work-related issues arise because employees lack the power to choose their tasks, leading to fatigue and errors.

Allowing voluntary task-switching throughout the day not only decreases complaints about fatigue but also leaves employees feeling refreshed. It’s a stress-proofing strategy that can benefit traders and anyone navigating the demands of a high-pressure environment.

Onwards.

9️⃣ Testosterone drives the market’s frenzy

Picture a trading floor, and you’re likely envisioning a sea of young men, riding the testosterone rollercoaster of market highs and lows. But here’s a market hack – diversify the staff to calm the testosterone-induced frenzy.

First up, bring in the seasoned players – older men. Testosterone hits its peak in young men, making their behavior more volatile.

Hiring older men stabilizes the impact of testosterone on the market. Despite stereotypes, older traders, like Warren Buffett and Benjamin Graham, have shown that caution and a slower pace don’t hinder success.

However, the trading floor isn’t always welcoming to older traders due to perceived slower reaction times and cautious attitudes. It’s time to challenge that perception and recognize that success can come at any age.

Next, let’s talk about gender diversity. Currently, women make up only 5 percent of trading floor populations. Here’s the kicker – women are less sensitive to testosterone-induced market frenzies.

Why? Well, their biology is different. Women naturally have lower testosterone levels (10 to 20 percent of males’), reducing susceptibility to hormone-driven effects like the Winner Effect.

Women also have a different stress response, opting for “tend-and-befriend” over the typical male “fight-or-flight.” In the workplace, this means women respond to stress by being extra caring toward others.

So, bringing in more women can add a dose of stability to the trading floor’s testosterone-driven rollercoaster, creating a more balanced and resilient market environment.

Next.

🔟 Familiarity reduces stress

Ever thought a vacation could be the perfect stress-buster? Well, think again. When stress is knocking at your door, novelty – even the enjoyable kind like an exotic vacation – can actually pile on more physiological stress, potentially making you unwell.

In a study, psychologists explored life-changing events, both positive and negative. Surprisingly, all these events, even the seemingly positive ones like weddings or childbirths, increased the risk of illness and mortality.

Why? The researchers theorize that the novelty of changed circumstances adds to our physiological load, making us susceptible to sickness.

So, when stress is already at the door, opting for familiarity over novelty might be the key. But life doesn’t always allow us to stick to the familiar. In such situations, there’s a way to dial down stress – by gaining a sense of control.

Studies show that patients in pain fare worse when uncertain about their next pain medication or unable to administer it themselves. Allowing patients some control over their pain medication results in lower overall medication needs.

The explanation? Control reduces stress, which, in turn, minimizes the experience of pain. So, a bit of control in challenging situations not only eases the stress but can also be a powerful pain reliever.

The Hour Between Dog and Wolf Review ⭐️⭐️⭐️⭐️✩

In “The Hour Between Dog and Wolf,” the author explores the irrational nature of traders’ behavior in the stock market, revealing that it is significantly influenced by physiology, including hormone levels and muscle memory.

The book emphasizes that during market bubbles and crashes, hormones like testosterone and dopamine play a crucial role, contributing to the destabilization of the markets.

To bring stability to the stock market, the key suggestion is to diversify the gender and ages of individuals on trading floors, acknowledging that this mix can mitigate the impact of physiological factors on market dynamics.

The book highlights the need to understand and address the biological underpinnings of financial decision-making for a more resilient and stable financial environment.

The Hour Between Dog and Wolf Quotes

🔥 Daily Inspiration 🔥

The habitual procrastinator is always an expert creator of alibis.

If you were so inclined, you could always find dozens of reasons why something couldn’t or shouldn’t be done and precious few ways it should or could.

It’s far easier to rationalize that it’s too difficult, too expensive, or too time-consuming than to accept the idea that if we are willing to work hard, smart, and long enough, we can accomplish anything.

Instead of committing, we make up an alibi.

If you find that you frequently invent excuses for why you didn’t do something or have a million reasons why something didn’t work out as planned, it’s time for a reality check.

Stop explaining and start doing!

— Napoleon Hill