The Hour Between Dog and Wolf audiobook cover - How Risk-Taking Transforms Us, Body and Mind

The Hour Between Dog and Wolf

How Risk-Taking Transforms Us, Body and Mind

John Coates

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EconomicsScienceMoney & Investments

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The Hour Between Dog and Wolf
Body-Brain Connection+
Intuition & Somatic Markers+
The Winner Effect & Bubbles+
Stress, Crashes & Cortisol+
Building Resilience+
Market Stabilization via Diversity+

Quiz — Test Your Understanding

Question 1 of 10
How does the author describe the role of hormones like Ghrelin in our decision-making process?
  • A. They act as absolute commanders that the brain cannot override.
  • B. They function somewhat like a lobby group, making their signals harder to ignore over time.
  • C. They are completely controlled and regulated by the brain's rational frontal lobe.
  • D. They only affect physical bodily functions and have no impact on cognitive choices.
Question 2 of 10
According to the book, what is the 'Winner Effect' observed in both animals and stock market traders?
  • A. A psychological state where winning improves a trader's fundamental cognitive skills and market knowledge.
  • B. The tendency for successful traders to become more conservative in order to protect their profits.
  • C. A biological feedback loop where winning increases testosterone, leading to greater risk-taking and potential recklessness.
  • D. The market's tendency to reward traders who rely purely on rational analysis rather than physical intuition.
Question 3 of 10
What did physiologist Benjamin Libet’s experiment involving finger-lifting suggest about human consciousness?
  • A. Conscious thought is required to initiate any physical movement.
  • B. The brain anticipates visual stimuli but relies entirely on consciousness for motor functions.
  • C. The body's physiological delay makes conscious decision-making impossible in fast-paced environments.
  • D. Conscious decisions occur after the brain has already prepared the body for an action.
Question 4 of 10
How does the author explain a trader's 'intuition' or 'gut feeling' on the trading floor?
  • A. It is the body's unconscious recognition of environmental patterns, known as Somatic Markers.
  • B. It is a supernatural cognitive gift that only a few highly successful traders possess.
  • C. It is the result of the brain actively suppressing the body's physiological stress responses.
  • D. It is a conscious, rapid calculation based on the Efficient Market Hypothesis.
Question 5 of 10
Why is physical fitness considered crucial for stock market traders?
  • A. It allows them to physically intimidate competing traders on the floor.
  • B. It enhances their awareness of bodily signals, helping them better interpret intuitive hunches.
  • C. It increases their baseline testosterone levels, which directly improves their trading skills.
  • D. It prevents the release of dopamine during successful trades, keeping them completely rational.
Question 6 of 10
What chemical interaction in the brain is primarily responsible for the excessive risk-taking seen during market bubbles?
  • A. The suppression of cortisol by high levels of adrenaline.
  • B. The replacement of dopamine with stress-inducing cortisol.
  • C. The interaction between surging dopamine and increasing testosterone levels.
  • D. The overproduction of Ghrelin in response to sudden market volatility.
Question 7 of 10
How does prolonged exposure to cortisol during a market crash affect a trader?
  • A. It energizes the frontal lobe, allowing for clearer, more rational decision-making.
  • B. It inhibits the frontal lobe and makes them remember losses more than wins, increasing risk aversion.
  • C. It completely shuts down the locus coeruleus, making them deaf to market rumors.
  • D. It triggers the 'tend-and-befriend' response, leading to increased cooperation among male traders.
Question 8 of 10
Based on the book, which of the following is an effective way to build resilience against stress?
  • A. Avoiding all forms of stress and novelty throughout one's life.
  • B. Experiencing extreme stressors, such as early childhood separation.
  • C. Taking frequent exotic vacations whenever work becomes overwhelming.
  • D. Repeatedly exposing oneself to moderate stress, such as handling or cold-water exercise.
Question 9 of 10
Why does the author argue for hiring more women and older men on trading floors?
  • A. They are less susceptible to the volatile effects of high testosterone, which would help stabilize the market.
  • B. They have naturally higher dopamine levels, which keeps them motivated during market downturns.
  • C. They are stronger proponents of the Efficient Market Hypothesis.
  • D. They generally possess faster physical reaction times than young men during a market crash.
Question 10 of 10
If a person is going through a highly stressful period, what does the book suggest is the best approach to manage it?
  • A. Taking an exotic vacation to completely change their scenery.
  • B. Seeking out novel, exciting experiences to distract the brain.
  • C. Finding ways to attain a sense of control and sticking to familiarity.
  • D. Increasing their workload to trigger a dopamine rush.

The Hour Between Dog and Wolf — Full Chapter Overview

The Hour Between Dog and Wolf Summary & Overview

The Hour Between Dog and Wolf is an illuminating look at the influence of human physiology on the thinking and behavior of stock market traders. The author, inspired by his experiences on the trading floor, investigates the hormonal basis of financial decision making, and demonstrates the way in which the body’s mechanisms can destabilize our financial markets. The book also explains what can be done to reduce the detrimental effects of our biology on the market, and even how we can use this knowledge to our financial advantage.

Who Should Listen to The Hour Between Dog and Wolf?

  • Anyone who is curious about the relationship between biology and stock trading
  • Anyone who is interested in how people think with their bodies
  • Anyone wondering how bubbles can form in the stock market

About the Author: John Coates

John Coates is a neuroscientist working at the University of Cambridge, and a former Wall Street trader (for Goldman Sachs, Merrill Lynch and Deutsche Bank). In 2012, he made The Financial Times and Goldman Sachs Business Book of the Year Award shortlist, and was named on the magazine Foreign Policy’s list of Top 100 Global Thinkers.

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