Saturday, October 20, 2018

How Our Physical Health Impacts Our Trading Psychology

Let's take a look at how the state of our bodies impacts our health and well-being and ultimately the mindsets we bring to trading.

Recent research suggests that a sedentary lifestyle--one without exercise--is more harmful to our health than smoking, diabetes, or high blood pressure.  The lack of aerobic fitness is a larger risk factor for mortality than having many medical conditions that we regard as necessary to treat.

*  Poor posture, such as sitting hunched over a screen for many hours per day, has been implicated in low blood oxygen levels.  Low blood oxygen levels are associated with higher stress levels and greater fatigue, both of which can negatively impact our executive brain functions and ultimately our performance.

Fascinating studies placing people in high altitudes (and thereby reducing their blood oxygen levels) find that low blood oxygen is responsible for declines in mood and worse cognitive performance.  Poor aerobic fitness interferes with our optimal processing of information.

Research finds that increased exercise is associated with lower rates of depression and greater levels of happiness.  Exercise also improves our sleep quality, which in turn is associated with higher levels of well-being and focus/concentration.

There is yet another way in which physical exercise can help our trading.  By training ourselves to tackle challenges, day after day, we build a mindset that encourages the tackling of challenges in other areas of life.  Quite simply, developing ourselves physically can be a powerful pathway toward developing our performance--in markets and in our personal lives.

Further Reading: