Sleep and trading: how does rest affect your decisions?
Traders who chase Asian-session trades on four hours of sleep make worse calls than they realise. Tiredness shows up as impatience, revenge trading and skipped checks.
Be honest:
- how many hours you sleep on trading days
- the mistake you most make when tired
- how you schedule trading around sleep
The psychology threads are full of losses that were really sleep debt.
Background: Revenge trading and overtrading: how to spot them and stop
Trading to win back a loss, or trading out of boredom, are two of the fastest ways to damage an account. Learn the warning signs and the rules that interrupt them.
What is revenge trading?
Opening a trade to win back a recent loss rather than because your trading plan gives a signal, often with a bigger position than usual.
How do I stop overtrading?
Set a maximum number of trades and a daily loss limit in advance, require a written reason from your plan before each entry, and check in your journal whether the extra trades have helped or hurt your results.
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