the impact of 7 physical habits on our trading performance

Often, as traders, we tend to overlook the importance of maintaining our physical well-being. Our typical routine involves waking up, checking watchlists and news, grabbing coffee, and then diving into trades. Rarely do we consider the impact of physical habits on our trading performance or establish a daily routine that prioritizes our physical well-being.

The Neglect of Physical Habits in Trading
Trading is not commonly viewed as a “performance” activity. Unlike sports that have specific physical criteria, trading has a low entry barrier. We often associate performance activities with more stringent physical requirements than trading demands.

Some may argue that day trading isn’t physically demanding at all. There might be individuals who achieve success despite a lack of physical activity, but they are exceptions, not the rule.

Understanding Trading as a Performance Activity
In a recent interview with Dr. Brett Steenbarger, a renowned psychologist, he emphasized that making a living from trading is an elite level of success comparable to achievements in chess, golf, acting, music, or creative writing. Achieving consistency in the markets requires attention to detail, routine, and training similar to any other endeavor.

Créde Sheehy-Kelly, a High-Performance Psychologist, emphasizes the importance of a systematic approach to building good habits for trading performance. Randomly engaging in trading exercises or advice without incorporating them into a core routine is akin to sporadic and arbitrary workouts at the gym – some benefits may be experienced, but reaching peak strength or fitness is unlikely.

The Impact of Physical Habits on Trading Performance
To be successful as a trader, it is crucial to recognize the significance of physical habits. Beyond mental and technical preparedness, a well-rounded approach is essential. Let’s explore seven important physical habits that significantly affect trading performance.

1. Sleeping Habits Sleep is often underestimated. Numerous studies highlight the adverse effects of sleep deprivation on cognitive abilities. Even partial sleep deprivation can lead to performance issues. Trading, often considered 90% mindset, becomes a challenging task with mediocre sleep. Mike Bellafiore of SMB Capital emphasizes the importance of modifying trading based on sleep quality.

Tips for Better Sleep:

• Discipline to limit screen time before dark
• Exposure to fading sunlight or dim lights in the evening
• Elimination of electronic devices in the bedroom
• Disabling wireless devices overnight
• Calming tea, melatonin, or L-Theanine
• Dark room with a cool temperature

2. Bad Posture and Trading Performance
While trading may not be physically demanding, maintaining stamina is crucial. Prolonged sitting or standing in poor ergonomic positions can lead to health issues affecting trading performance. Alternating between sitting and standing, using devices promoting proper posture, and paying attention to blood flow are essential.

3. Taking Physical Breaks from the Screen
Physical breaks from the screens serve two purposes – reviewing performance and renewing energy. Developing a trading routine that includes breaks can enhance overall performance.

4. Proper Exercise for Increased Blood Flow
Incorporating exercise into the routine, even in the form of a short break, helps increase blood flow. Stressful situations redirect blood flow from the cerebral cortex to motor centers, affecting decision-making abilities. Physical activity prepares traders for market battles, as highlighted by Mike Bellafiore.

5. Stretching or Foam Rolling
Using breaks and exercise to eliminate tension through stretching or foam rolling contributes to overall physical well-being.

6. Deep Breathing for Increased Oxygen
Deep breathing introduces mindfulness into trading decisions. It helps slow down and reflect on actions, reducing the impact of fear of missing out (FOMO).

7. Nutrition and Hydration for Optimal Performance
Proper nutrition and hydration play a key role in overall well-being. A healthy diet, regular exercise, and adequate water intake positively influence various aspects of life, including trading performance.

While there are numerous elements to consider for peak performance in trading, focusing on physical activities can significantly enhance overall well-being. Mastering health, confidence, and mindset are key traits of high-performance traders, reinforcing the interconnection of these aspects. Taking stock of habits and making necessary changes can pave the way to success in trading.