How Does Lack of Sleep Compromise Trading?

With so many fluctuations in this market, you may also be experiencing changes in your sleep patterns. You take that trade right before the closing bell, and you’re up in the wee hours checking futures. I’ve been there. Usually, this would not be such a big deal. Not ideal, but manageable. But times are not normal. You are much more likely to get sick and take much longer to recover if you’re getting poor sleep quality. And that lack of sleep can compromise not only your health, but your trading.

Sleep and immunity are bi-directionally linked. If your immune system is compromised, so likely will be your sleep and vice versa. If you’re not sleeping well, your immune system suffers. Just as it’s impossible to be a successful trader without understanding your trading system, it’s impossible to achieve our lifestyle goals without understanding our essential support systems.

Why is Sleep so Important?

So, why is sleep such an integral part of supporting a healthy lifestyle? It has to do with a protein that is released by our immune system called cytokines. Without getting too much into the weeds, think of cytokines as your body’s soldiers that fight off invaders. Think of them like a stop loss.

When you aren’t sleeping well, the production of these soldiers diminishes. Even if you’re reading this feeling sleepy, I think I can get your attention by comparing this to watching your profits diminish because you didn’t honor your trading system.

Ok, now that we’re all alert, let’s get into the ways we can protect ourselves and, in turn, our portfolios. My philosophy has always been quality over quantity, and this definitely applies to sleep. Experts recommend 7-9 hours, but even if you’re achieving this benchmark, it really depends on the quality of those hours.

Here are Four ways you can improve your sleep quality and your trading:

1. Create a Welcoming Sleep Environment

Make sure your space is cool, dark, and clean of clutter. Also set regular bedtime and wake-up times. The more you can establish a routine, the more your mind anticipates sleep regularly, and that can help you fall asleep faster.

2. Reduce Screen Time

Try reducing screen time to 1 hour before bed. (exceptions: Calm or Headspace) Deep breathing, repeat mantras, visualize.

3. Avoid getting up

I know this goes against what experts used to suggest, but with all of the new resources we have at our disposal, you’re more likely to stumble upon something that will only increase your stress. Take deep breaths and try doing some silent mantras (you don’t want to wake up your partner, or you’ll both be miserable the next day). You can also try visualizing calm environments.

4. Don’t get agitated

Even if you’re not asleep, if your body is relaxed and resting, you’re doing your immune system right. So take advantage of this time while lying in bed resting to feel all you’re grateful for, and I promise, you’ll wake up refreshed no matter the hours you clocked!

Start Sleeping Better Today

Money never sleeps, but it is essential that we do! As you see, getting better sleep can improve your immune system during these troubling times and also benefit your trading health.

Change is good, and nothing stays the same. Keep that in mind as we all go through these times together while apart. And it’s more essential than ever that you strengthen your immune system, so start practicing my four tips today to make your sleep more of a priority.

If you have any questions be sure to comment on this post or email me at eamarconi@aol.com.

Keep an eye out for some exciting news I will be sharing with you in the coming weeks, and if you missed my previous posts check them out below.

How to Manage Stress in a Volatile Market

Five Ways Traders Can Strengthen Your Immunity

How Traders Can Keep Their Bodies Thriving