Can Stress Make You a Better Trader?

Want to be on the show? Send us a question, a voice note or a quick video to [email protected] What is trading doing to your body, not just your portfolio? In Episode 12 of Markets and Mindsets, the team are joined by Rich, a former international athlete and professional trader with two decades of experience across market-making, hedge funds and emerging markets. Rich reflects on the physical and psychological toll of trading through major market events, including the financial crisis, the Swiss franc de-pegging and periods of extreme volatility. The conversation explores the difference between short, sharp bursts of adrenaline and the longer-lasting build-up of cortisol, and how both can influence decision-making, focus, sleep and behaviour. The team also discusses when stress can improve performance, why routine and a documented process can reduce pressure, and the practical warning signs that trading may be taking over your life. From diet, exercise and sleep to position sizing, time away from the screen and stress-testing your portfolio, the episode examines how traders can protect their health while continuing to engage with the markets they love. In this episode: - The physical and psychological toll that trading can place on the body - The difference between adrenaline and cortisol - Why adrenaline narrows attention and encourages faster decisions - Why prolonged stress can cause cortisol to build up over time - How stress can sometimes support flow, focus and faster execution - The four steps for turning stress into a performance aid - How routines and documented processes can reduce uncertainty - How cold water and stepping away from the screen can help create a reset - The importance of diet, exercise and sleep for trading performance - How position sizing should change with volatility and emotional state Chapters 00:00 – Introduction: What Trading Does to Your Body 06:16 – Adrenaline vs Cortisol 08:11 – How Adrenaline Changes Vision and Decision-Making 11:24 – How Cortisol Builds Up Over Time 14:52 – Using Stress to Enhance Performance 20:23 – Documenting Your Trading Playbook 24:18 – Memory, Stress and the Value of a Trading Journal 26:00 – Diet, Exercise and Sleep 32:27 – Position Sizing for Volatility and Emotional State 35:41 – Warning Signs That Trading Is Taking Over Enjoyed the episode? Subscribe to Markets and Mindsets for more conversations exploring the psychology behind better investing. If you enjoyed this episode, leave a rating or share it with someone looking to become a more thoughtful investor. Capital at risk. The value of investments can go down as well as up, and you may get back less than you originally invested. This podcast is for educational purposes only and should not be considered investment advice.