High-value trading involves a complex interplay of neurobiological processes, which have significant implications for performance and the results obtained. I did an analysis that explores the brain mechanisms involved in negotiation, highlighting the importance of various neurochemical systems and substances. This understanding can be a facilitator with strategies for the timing of a negotiation.
During the anticipation of substantial gains in a negotiation, the mesolimbic reward system is activated, with emphasis on the nucleus accumbens and the ventral striatum. This activation results in the release of dopamine, a neurotransmitter associated with pleasure, motivation and reinforcement of behaviors. While dopamine drives engagement in trading, high levels can lead to impulsivity and risky decision-making. The prefrontal cortex (PFC) plays a crucial role in modulating these impulses, allowing a more rational and strategic evaluation of options. To optimize the function of the CPF during negotiation, it is essential to be aware of the present moment and the existing possibilities, both favorable and unfavorable. This situational awareness allows the CPF to generate alternatives and creative solutions if the circumstances are not favorable, ensuring flexibility and adaptability in the search for mutually beneficial results.
The amygdala, a structure located in the limbic system, plays a central role in the processing of threats and emotions, being activated in high-pressure situations, such as high-value trades. This activation leads to the release of cortisol, the stress hormone, which at high levels can impair executive functions crucial for strategic negotiation, such as working memory, attention, and cognitive flexibility. The ability to regulate the response of the amygdala is critical to maintaining calmness and effectiveness under pressure. Emotional regulation strategies, such as cognitive revaluation, can be effective in this context. This technique involves reinterpreting the situation in a more positive and less threatening way. For example, instead of focusing on the possibility of negotiation failure, the individual may think of other sources of reward and satisfaction in their life, such as a planned trip with their family, success in other projects, or the achievement of short-term personal goals. This shift in focus can help reduce amygdala activation by decreasing cortisol release and its negative effects on cognitive performance.
The prefrontal cortex is responsible for executive functions such as information analysis, risk assessment, and strategy formulation. In addition, the insula contributes to interoception and emotional experience, assisting in the evaluation of situations and adaptive decision-making. Integrating these functions allows negotiators to flexibly develop and apply effective strategies. Mindfulness practice can further strengthen these skills by promoting present-moment awareness, emotional regulation, and more conscious and strategic decision-making. Mindfulness involves directing attention to the present moment without judgment, which can aid in emotional regulation and stress reduction during negotiation. In addition, mindfulness strengthens the connection between the prefrontal cortex and the insula, improving the ability to integrate cognitive and emotional information into decision-making. By incorporating mindfulness into trading, individuals can enhance their ability to analyze information objectively, assess risk more accurately, formulate more effective strategies, and make more adaptive decisions, taking into account both the rational and emotional aspects of the situation.
The hippocampus, a fundamental structure in the medial temporal lobe, plays a crucial role in the formation and retrieval of memories, allowing past experiences to be integrated and used for continuous learning during negotiation. Neuroplasticity, the ability of the brain to reorganize itself in response to experiences, is essential for developing negotiation skills, facilitating adaptation and continuous improvement. Bringing to mind memories of successful negotiations can be a powerful tool for improving performance. By recalling moments of success, the brain activates neural patterns similar to those experienced in that situation, which can facilitate the retrieval of relevant information and effective strategies. This strategy uses the principle that the brain operates by association, seeking clues and connections to access stored memories. Even for those who do not yet have experience in formal negotiations, reflection on past situations that have brought positive results can be useful. By identifying the key elements that have contributed to success in these contexts, such as clear communication, empathy, the ability to listen and the search for mutually beneficial solutions, the individual can apply these learnings in future negotiations, such as strengthening your skills and increasing your chances of success.
A expectativa de recompensas significativas aumenta a liberação de dopamina, reforçando a motivação e o engajamento na negociação. Indivíduos com maior capacidade de tomar decisões sob pressão demonstram uma maior ativação do córtex pré-frontal e uma menor reatividade da amígdala. Além disso, a confiança e a autoeficácia, ou a crença nas próprias habilidades de negociação, reduzem a ansiedade e aumentam a ativação de áreas cerebrais associadas à confiança e ao otimismo. O desapego do ego e do resultado pode ser benéfico para os negociadores. Reduzir a ansiedade e o medo do fracasso permite um foco mais claro no processo, facilitando a flexibilidade cognitiva, a criatividade e a adaptação às mudanças na negociação. Esta abordagem pode levar a um desempenho mais eficaz e a melhores resultados.
Dr. Fabiano de Abreu Agrela Rodrigues MRSB holds a post-PhD in Neuroscience and is an elected member of Sigma Xi – The Scientific Research Honor Society (more than 200 members of Sigma Xi have received the Nobel Prize), as well as being a member of the Society for Neuroscience in the United States, the Royal Society of Biology and The Royal Society of Medicine in the United Kingdom, the European Society of Human Genetics in Vienna, Austria, and the APA – American Philosophical Association in the United States. He holds a Master’s degree in Psychology and a Bachelor’s degree in History and Biology. He is also a Technologist in Anthropology and Philosophy, with several national and international degrees in Neuroscience and Neuropsychology. Dr. Fabiano is a member of prestigious high IQ societies, including Mensa International, Intertel, ISPE High IQ Society, Triple Nine Society, ISI-Society, and HELLIQ Society High IQ. He is the author of more than 300 scientific studies and 30 books. He is currently a visiting professor at PUCRS in Brazil, UNIFRANZ in Bolivia and Santander in Mexico. He also serves as Director of CPAH – Centro de Pesquisa e Análises Heráclito and is the creator of the GIP project, which estimates IQ through the analysis of genetic intelligence. Dr. Fabiano is also a registered journalist, having his name included in the book of records for achieving four records, one of which is for being the greatest creator of characters in the history of the press.