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Stress, emotions and the body
In one line: Trading moves your body chemistry, even for professionals.
Evidence
Coates and Herbert (2008) followed 17 London traders for 8 days: morning testosterone predicted that day's profit and loss, and cortisol rose with the variance of their P&L and with market volatilityHow much and how fast the price swings.. Lo, Repin and Steenbarger (2005) found day traders with more intense emotional reactions to gains and losses had worse results. Fenton-O'Creevy and colleagues (2011) found higher-performing bank traders regulated their emotions better, rather than feeling fewer emotions.
Coates and Herbert (2008) followed 17 London traders for 8 days: morning testosterone predicted that day's profit and loss, and cortisol rose with the variance of their P&L and with market volatilityHow much and how fast the price swings.. Lo, Repin and Steenbarger (2005) found day traders with more intense emotional reactions to gains and losses had worse results. Fenton-O'Creevy and colleagues (2011) found higher-performing bank traders regulated their emotions better, rather than feeling fewer emotions.
More videos on this (4)
- The 1% Trader Mindset · Stick Trader · external
- The Aha Moment: The 5 Psychological Phases Every Trader Must Survive · Stick Trader · external
- The 3 Pillars of a Mentally Unbreakable Trader · Stick Trader · external
- Fear of Losing Money: 5 Trading Steps to Stay Calm · Stick Trader · external
Takeaway from the research: the goal isn't to feel nothing, it's to notice and manage what you feel. Small studies, so treat as indications.
Further viewing
External videos are for viewing only: we don't use them as a factual source.
External video, for viewing onlyThe Aha Moment: The 5 Psychological Phases Every Trader Must Survive
Stick Trader · open on YouTube
Stick Trader · open on YouTube
External video, for viewing onlyThe 3 Pillars of a Mentally Unbreakable Trader
Stick Trader · open on YouTube
Stick Trader · open on YouTube
External video, for viewing onlyFear of Losing Money: 5 Trading Steps to Stay Calm
Stick Trader · open on YouTube
Stick Trader · open on YouTube
Related
Sources & studies
- Coates & Herbert (2008), PNAS
- Lo, Repin & Steenbarger (2005), American Economic Review
- Fenton-O'Creevy et al. (2011), Journal of Organizational Behavior
Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.