Can Meditation Make You a Better Trader?

Author: James Clark

The Benefits of Meditation for Trading

We’ve all heard about the benefits of meditation, and how it can help us deal with stressful situations and elevate mood, etc. Traders deal with risk and uncertainty every day, often at the expense of their mental health. So, meditation for trading sounds like an effective way to cut back and relax after a long day of trading or to start your day before opening your trading platform.

But, can meditation make you a better trader? Let’s find out!

The Benefits of Meditation for Trading

Most people aren’t naturally capable of compartmentalizing their emotions for hours at a time. Meditation can not only improve your mood but potentially improve your trading as well. Here are the 5 main benefits of meditation for trading:

1. Meditation Helps with Depression, Anxiety, and Stress

Traders regularly deal with stress, whether they win or lose. Meditation for trading can reduce stress levels and help you smoothly navigate through the complex market. New traders often feel anxious about losing money or making mistakes even before opening their platform. Meditation can help them calm down their nerves and balance their emotions.

Nobody likes to lose, but traders deal with loss differently. For example, many traders feel depressed after consecutive losses. Meditation can eliminate or reduce ruminative thinking to help you deal more positively with losses.

2. Meditation Can Sharpen Attention and Increase Patience

Staring at the screen for hours can make even the most experienced traders impatient and lose focus. Meditation can help you develop the capacity for waiting and sharpen your attention so you can avoid distractions and focus more intently on your trades.

3. Meditation Can Eliminate or Reduce Fear and Greed

In trading, winning can make you greedy and losing can make you fearful. Meditation can help you effectively manage fear and greed, both of which are disruptive emotions. With mindfulness, you can take a more grounded and neutral perspective that takes emotions out of the trading equation.

4. Meditation Improves Information Processing for Better Decision-Making

According to research, people who meditate have larger amounts of gyrification, which is responsible for improving information processing. With better information processing, traders can make better decisions and improve their trading skills.

5. Meditation Can Eliminate Negative Emotions and Make You Happy

Another research claims that people who meditate are happier than people who don’t. This is because they exhibit positive emotions while eliminating negative ones. With fear, doubts, worry, lack of confidence, and anxiety out of the equation, traders who meditate can become happier.

Bottom Line

These are just some of the main benefits of meditation for trading that should answer the question, ”Can meditation make you a better trader?” All in all, trading is a mental performance discipline, and meditation is one of the most effective ways to give you a mental edge. Doctors, lawyers, professional athletes, and engineers, etc. all regularly meditate, so why shouldn’t traders?

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