How Can New Research In Psychology Help Our Trading?

 

2/20/2026 - In this series of posts, we'll take a look at recent research in psychology and how that research might be relevant to our trading performance.  The idea is that all work on performance should be based upon objective evidence, not just practical "coaching" advice.  It turns out that recent research finds an amazing correlation between our physical fitness/conditioning and our psychology/performance.

A significant portion of the population is quite lacking in fitness.  According to research from the Centers for Disease Control, 25% of the population reports no deliberate physical exercise in the past month and fewer than 25% of adults meet recommended guidelines for strength and aerobic conditioning.  Interestingly, exercise boosts our levels of neurotransmitters, much as psychiatric medication does.  Indeed, Smits and Otto, in their review, suggest that "exercise may be conceptualized as a non-pharmacological analogue of antidepressant medication" (p. 8).

From a positive psychology perspective, exercise boosts our sense of wellness, which in turn energizes our work efforts.  The right kind of session in the gym not only exercises our strength and aerobic capacity, but also is a direct experience of goal setting and achievement.  Smits and Otto also point out that exercise benefits sleep quality, providing us with a clearer mindset and boosting our sense of resilience.

In the next post, we'll take a closer look at how we can use exercise as a psychological treatment.