Warning: Get Some Sleep!

For the past few months, I've been logging my hours of sleep per night and also my general mood for the day and I've begun to see a correlation. Although this is no mystery that people that lack sleep are generally more irritable and stressed, I believe these are merely the symptoms of the bigger problem: weakening of our self control.

When I lack sleep, I find that I become undisciplined and give into my impulses and whims. I am unable to resist foods that I shouldn't eat, I cut my exercise routines short and I can't reign in my negative emotions (fear, anger, frustration, etc). I also can't control what I want to say despite knowing the consequences. Being in this state is a vicious cycle that leads to bad decisions and actions which leads to even more frustration not only because of the situation itself but my apparent in ability to stop the downward spiral.

The oft quoted line of the Greek Stoic, Epictetus, "It's not what happens to you, but how you react to it that matters.", truly holds the secret to happiness. Unfortunately when I lack sleep, I no longer have control of my reactions. Now this doesn't mean that I should not be held responsible for my actions because I definitely am accountable. I lack sleep due to the choices I make (working late, hanging out with friends, waking up early, etc). The good thing is that now that I have made this connection between sleep and self control, it impresses upon me the importance of a good night's rest and on the occasions that I don't get enough sleep, I need to be extra cautious of the things I do and say and be more vigilant with myself. 

Now for all of you statisticians that argue correlation is not causation, you are correct. At the same time, my belief is no "cum hoc ergo propter hoc" (latin for correlation proves causation) but rather a function of my experience and intuition. Not very scientific but you always have the choice to agree or disagree with my views.

For those who has experienced the connection between sleep and self control and want to improve their sleeping habits, here is a link on How to Sleep Better.

Ok, time for me to get ready for bed.

Thomas Jefferson's Guide on How to Behave!

Much like Poor Richard's Thirteen Virtues, our third president and author of the Declaration of Independence also had his own rules of conduct. Despite it being over 200 years old, many if not all of these ideas are still relevant today. I believe that taking advice from one of the founding fathers of this nation is never a bad thing.

Here are Thomas Jefferson's Rules of Conduct:

1. Never put off 'til tomorrow what you can do today (Very useful if you really want to get things done)
2. Never trouble another for what you can do for yourself (Self-help is the common denominator of all successful people)
3. Never spend money before you have it (We've all learned the value of this rule ... or have we?)
4. Never buy anything you do not want because it is cheap (Good response to Groupon, Living Social and any other deal sites that tempt you to buy things you don't really want)
5. Take care of your change; dollars will take care of themselves ("Sweat the small stuff") 
6. Pride costs us more than hunger, thirst and cold (I think it is safe to assume we all know how expensive and costly pride can be)
7. We never repent for having eaten too little (I've never had a good feeling walking out of a buffet - also I hear those who eat less calories/day live longer)
8. Nothing is troublesome that one does of his own volition (Have a passion and you'll never be unfulfilled - what's mundane to one person may not be so to another)
9. How much pain has cost us the evils which have never happened (Stop worrying - you're just wasting energy that can be better used)
10. Take things always by their smooth handle (Always use tact and go for win-win outcomes)
11. Think as you please, and so let others, and you will have no disputes (Don't judge, everyone has their own truth and perceptions so respect that)
12. When annoyed, count 10 before you speak. If very annoyed, count 100 (Works every time, just try it)

The actual document from www.monticello.org

The Art of Relaxation - "Fang Song Gong"

We have all been told to "relax" but has anyone ever been taught how to relax? What does it mean to relax? Watching TV, going on vacation, reading, lying on the bed, playing guitar? I have been practicing Tai Chi Chuan for about half a year now and even though Tai Chi is associated with relaxation I was told that I have not yet learned to relax my body despite performing the correct Tai Chi movements. This made me realize that one needs to actually LEARN how to relax and afterwards to actively apply this knowledge. Contrary to popular belief, relaxation is not about letting your body droop as if you've just lost all your bones. It is not about releasing control of your body but rather focusing on your tension so your body can actively relax it. Relaxation is the best combatant for stress, which is responsible for many emotional and physical problems. Our society is naturally stress-ridden and it is paramount that people learn to relax so to improve their general wellness and happiness. In The Way of Qigong, Kenneth S. Cohen discusses the art of relaxation (In Chinese - Fang Song Gong) and gives some useful insights and methods for relaxing. I will discuss one of the methods that I have found most practical alongside with some personal insights that will hopefully help you to understand relaxation better.

There are four things to keep in mind when thinking about relaxation.

1) Awareness and Tranquility - PAY ATTENTION to tension so that you can relax it. You are actively confronting the problem as opposed to ignoring it. Most people aren't really relaxed when trying to be relaxed because they lack the self awareness to achieve it. They will perform activities to take their mind off their stresses and tensions but rarely do they actively focus on the tension itself. Knowing where you feel tension is the first step to relaxing.

2) Effortlessness - Do less but be more efficient. Don't try too hard to relax. Bruce Lee accurately describes this concept when he teaches people to "be like water". Water is unassertive and soft yet supple, alive and powerful. Again, effortlessness does not mean relinquishing all control but to be fluid and use just enough strength to achieve the desired movement.

3) Sensitivity - A body and mind that is relaxed can feel. This is stressed heavily in close combat martial arts because without real relaxation the body is too rigid and slow to respond. There is less sensitivity to your opponents' movements resulting in delayed reactions. If you want to test this concept, in a sink of cold water, immerse your forearm fully flexed then in the same cold water immerse your other forearm fully relaxed. Which arm was more sensitive to the cold? This is the reason why when taking punches, most fighters will flex the part about to be hit. The body itself will naturally tense up when expecting impacting. This quote from Cohen's book stuck out to me: "If the opponent doesn't move, I don't move. If he makes the slightest move, I move first."

4) Warmth and Rootedness - Deep relaxation and breathing should result in warmth and a feeling of stability to the ground. When standing, it is recommended to relax through the feet and into the ground much like the roots of a tree spreading underneath the tree. When relaxing, it is good to feel "warmth in the body and coolness in the forehead".

A good way to define relaxation is Effortlessness with Intent. One method that I personally use for relaxation is:

Sequential Relaxation and Sinking (from The Way of Qigong)

• Stand shoulder width apart or sit comfortable and erect

• Eyes closed or half open with a soft unfocused gaze

• Starting from the crown of your head relax each body part until you reach the bottom of your feet. Inhale when you focus on the body part and exhale when you physically relax the body part. When relaxing, let each body part sink to the lowest point. The body should be relaxed in this order:

• Relax crown, forehead, eyebrows, eyes, cheeks, jaws, gums, ears and muscles of the face. Feel these muscles letting go and releasing downward.

• Relax muscles on front, side and back of neck. Relax and open the upper spine. Imagine your head like a wine cork floating on water.

• Relax shoulders and sink them straight down (not forward or backward) to the ground. Allow relaxation to spread to the arms/hands and feel the weight of your arms and extension and weight of your fingers.

• Relax collarbone, shoulder blades, ribs and breastbone.

• Relax entire spine by extending like a rope and balance the spine so it feels as if no muscles are needed to hold it up.

• Relax torso, abdomen, solar plexus and diaphragm.

• Relax the hips and butt. Be aware of the connection between the top of the leg and the bottom of the hip and make sure there is space in that area.
  

• Relax the thigh muscles and hamstrings. Release knees and relax lower legs, calves, ankles, feet and toes.
  

This method has worked well for me and if you decide to try this method, I recommend really taking your time and focusing on each body part before you let it relax. With practice, it is possible to achieve relaxation quickly. The key thing is to PAY ATTENTION to each body part before you physically relax it.

If you try this method or if you know of any effective ways to relax, feel free to leave comments or to email me at seeminglyuseless@gmail.com

Recommended Reading - The Way of Qigong: The Art and Science of Chinese Energy Healing by Kenneth S. Cohen

The Two Mistake Great Nations Always Make

The phrase "Rise and Fall of" usually precedes something great that was established but then due to certain factors just utterly falls apart. This term has always been reserved for swift magnificent collapses. Some current nouns befitting this descriptive title are Bear Stearns, Eliot Spitzer and even Britney Spears. These three examples are testament to George Santayana's famous advice that "Those who fail to learn the lessons of history are doomed to repeat them". So in order to learn this lesson the "easy" way, I decided to research one of the greatest and most widely studied collapses of all time, the Fall of the Roman Empire. In our society, there has always been an interest and emphasis on studying how to "rise to the top" as evident by the multitude of self-help/personal development books, websites and seminars. Since most people already know how to "rise" and be successful, I want to focus on how certain extremely successful and great things "fall from glory".

The reason for the fall of the Roman Empire is one of much debate and controversy. One theory by Edward Gibbon blames the decline of the Empire on loss of "civic virtue" among Rome's citizens resulting in outsourcing of important duties such as Empire defense to barbarian mercenaries who eventually revolted and took over the Empire. Roman citizens became complacent and lazy with their successes and lost the military toughness that had brought them success. Another reason cited for the Empire's demise was overextension. As the Empire grew, there were more bordering enemies and more cities to defend thus spreading the military thin. This not only led to weakened defense throughout all the cities during a time when military protection needed to be strongest but also led to the aforementioned hiring of barbarian mercenaries who later became responsible for destroying the Empire. Rome's fall is eloquently described by Gibbon here: "The union of the Roman empire was dissolved; its genius was humbled in the dust; and armies of unknown barbarians, issuing from the frozen regions of the North, had established their victorious reign over the fairest provinces of Europe and Africa." (Chapter 33 from Decline and Fall of the Roman Empire).

Although barbarian incursions are popularly believed to be the cause of Rome's fall, an interesting argument has been raised in The Upside of Down by Thomas Homer-Dixon for complexity as a primary cause. He believed that Roman Society became more complex and difficult to control which resulted in bureaucracies and corruption. Homer-Dixon states that "rising complexity strangled the empire's ability to renew itself". Basically, the complexity led to a rigidity that reduced Rome's ability to withstand sudden unexpected crises. The author also argues that increasing complexity results in decreasing investment returns of energy despite expending more energy. Rome's main source of energy was food and as Rome expanded and became more complex, the empire exhausted its best farmland and had to cultivate less fertile lands. Poorer crop yields along with longer food supply lines to major cities caused the return on energy investment to steadily decrease with increasing effort/energy. As time went on and complexity further increased, Rome's energy supply was eventually producing too little for the amount of energy needed to maintain these supply lines and its famous dramatic collapse ensued.

Although commonly associated with intelligence, sophistication and progress, complexity is detrimental. Complex ideas and institutions require more energy to sustain with diminishing marginal returns than its simple predecessors. The current financial credit crisis in the US was born out of complex financial instruments (nontraditional mortgages and equity and bond derivatives) that very few people, including CEOs of major financial institutions, understood. These complex systems caused the financial industry to become too rigid and when a crisis (subprime) occurred, many firms were rudely awakened to staggering losses and substantial risks on various holdings (Bear Stearns, Ambac Financial, Countrywide Financial and numerous other companies). Since society and financial markets are becoming more intertwined and complex, a disaster in the financial sector translates into trouble for the general economy and global markets. The more complex a system is the less the system can cope with sudden shocks.

Another example that attests to the deleterious effects of complexity can be seen in investing/trading. Two REQUIRED characteristics of a successful investor/trader are flexibility and adaptability. The financial markets are ever changing and to be profitable one has to act fast and be flexible in one's thinking and adapt to changing conditions. Since rigidity is directly proportional to complexity and flexibility is the opposite of rigidity, it is logical to conclude that complexity is inversely proportional to investing/trading success. Traders and investors that devote much of their time performing complex strategies and using every indicator across all markets usually suffer in performance to those who have simple yet effective strategies. It is easy to get lost in all the clutter and miss out on key information.

Here are some valuable lessons to be learned from the Fall of the Roman Empire:

• Don't Become Complacent - After achieving success, it is natural to want to take a break from all your hard work and get lazy but if you want to maintain success, you need to stay "hungry" for what you want. Pursue work that you enjoy so you never need to really "take a break". Trying to constantly improve your chances of success is something you should find fun.
  

• Don't Overextend Yourself - Napoleon, the Roman Empire, and subprime borrowers are all too familiar with the grave dangers of overextending. Spreading yourself thin is always an invitation for disaster. When you take on too much, there is no room for error or unforeseen circumstances. Know your limitations and make sure you stay within them so as to not become an unfortunate statistic to Murphy's Law.
  

• Keep It Simple, Stupid! (KISS) - The most important lesson that I learned from my research is to keep things simple. I have seen many traders use a million and one indicators and look at hundreds of charts and perform all types of complex analysis but yet can't make any money. When you pay too much attention to detail, it not only consumes time and energy, sometimes you lose sight of the big picture and important data. The most effective presentations are those that get to the point. When things are complicated, it is easy for mistakes to occur but difficult to locate the source of those mistakes. Almost always, less IS really more.
  

History does hold many timeless teachings and taking heed to these lessons will save you from learning things the "hard" way.

Stay tuned for future articles concerning complexity. It is a topic that is both intriguing and relevant.

Recommended Reading: The History of the Decline and Fall of the Roman Empire by Edward Gibbon and The Upside of Down: Catastrophe, Creativity, and the Renewal of Civilization by Thomas Homer-Dixon

Scared to Lose? What Are You Afraid Of?

For some reason, most people are scared to lose. Perhaps it is an ego protecting defense mechanism or maybe we're afraid of what others might think of our losses. This phobia mainly occurs when someone becomes too emotionally attached or focused on the outcome. Although it is true that no one enjoys losing, disliking loss is quite different from being afraid to lose. Losing is an outcome, being afraid to lose is a mindset that usually leads to poor performance which culminates into a losing outcome.

How many people do you know who despite expressing desire to approach an attractive member of the opposite sex, does not do so or takes a long time to get the courage to approach that person and when he/she does he/she comes off like a stuttering mess. This is a good example of how being afraid to lose can affect your performance. The worse case scenario here is rejection yet many people blow this outcome out of proportion and suddenly it becomes an unwarranted fear of public humiliation which in turn leads to poor self confidence. In reality, no one will laugh at you for being rejected but when you focus on the outcome, it somehow always transforms into a life or death situation. Those who take rejection for what it is usually fair much better with the opposite sex because they come off as confident and if they do get rejected, they are able to move right on to their next target.

A second example of being scared to lose is when No Limit Texas Hold 'Em players only cash the minimum buy-in for ring games. Strategically it is more advantageous for them, granted that they are decent players, to have as much money on the table as possible so as to maximize winnings when they have a good hand but instead of focusing on winning, they are focused on not losing and playing defensively so with a smaller buy-in they would limit their loss if they went all in. In essence they are scared to lose their money and this in turn usually affects their performance as they are easily bluffed, reluctant to make a move, or win very little when they actually do get a hand. Not exactly a formula for success.

The fear of losing is also very prevalent in all levels of athletic competition ranging from Little League to the Olympics. As aforementioned, the fear of losing stems from being too attached to the outcome of the competition. Instead of being aggressive and confident, the person that is afraid to lose becomes defensive. A good example is a team that obtains a comfortable lead but then completely changes their normal way of play to "protect the lead" as opposed to playing their best game to win. This usually leads to a loss of the lead and in most cases an eventual loss of the match. Heartbreaking indeed.

The final example concerns stock investors/traders. Many people invest and trade in the stock market with a natural apprehension for loss. Despite doing sound research and picking good stocks, the fear of losing causes investors to sell out of their winning positions despite not reaching planned targets or stop losses. This leads to a damaging cycle of taking small losses without taking any big winners. Similar to an athletic team who loses its aggressive stance by playing defensively to "protect the lead"; day traders that are having a good the day who size down or cover positions for fear of losing money are only hurting themselves. They are no longer focused on the process of trading but rather the outcome (Read more about the dynamics of process vs. outcome in this previous post). For those who are too lazy to read another lengthy article, basically that post concludes that process dominates outcome in the long term. Many investors and traders are so obsessed with winning that they are happy with a higher win ratio versus higher net revenue. In other words they would rather win in more trades and make less money than win in fewer trades but make more money. Such an obsession leads to the devastating practice of holding on to losing trades on the hopes that they reverse into winning trades. This is the exact opposite of the proven successful investment strategy to let the winners ride and to cut losses short.

There are many other examples but now let's focus on conquering this malignant phobia:

Ways to Overcome Your Fear of Losing

• Build Up Your Self-Confidence by Constantly Improving Your Skills and Strategies - Athletes should train hard in their sport and Investors should develop a sound strategy for both stock picking and money management.

• You Have a Choice - Focus on Your Performance and NOT on the Outcome - when one tries too hard to achieve something because there are too attached to the final outcome, it usually leads to poor performance. This ends up chasing away the very things you want to accomplish.
  

• Keep Things in Perspective - Losing money, failing a test, losing a match and getting rejected are not the worse things in the world. There are those who are far worse off and situations that can . Don't treat every outcome as a life or death situation.
  

• Accept Losing as Part of the Game - All great athletes, traders/investors and poker players know: You win some you lose some. That's the way it is. It is the Yin and the Yang. But as long as you focus on improving your strategy and abilities, the wins will easily outweigh the losses, in the long run, if not in number then definitely in magnitude. Josh Waitzkin, child chess prodigy and Tai Chi Chuan champion, devotes an entire chapter in the Art of Learning to investing in loss.
  

I have to admit I am guilty of all four examples above and the one thing that I have always observed to be true is: The more you try to do something the more likely you'll fail (Trying hard to keep a relationship, trying hard to find a job, trying hard to make money, trying hard to find missing keys, trying hard to find a partner, etc). I am not telling you to not try but rather to not over-try. I think most people try too hard when they put too much emphasis on the outcome and not on the process.

Feel free to share your own experiences or solutions to being scared to lose in the comments section.

Recommended Reading - Developing Mental Toughness by Graham Jones and Adrian Moorhouse, Engineering Psychology and Human Performance by Christopher D. Wickens and Justin G. Hollands