The Impact of Music on Your Trading Experience

Elevate Your Trading Psychology Edge With The Right Music

September 18, 2021

Enhancing Trading Psychology with Music

Many traders find solace in listening to music during their trading sessions, believing it can enhance their trading psychology and overall performance. The choice of music can be strategic, with various genres and characteristics offering distinct benefits. While I'm not a music expert, I've personally found certain genres conducive to my trading sessions, including electronic, chillout-ambient, down-tempo, classical fusion, electropop, new-age, and trance. Here's why music plays a significant role in my trading routine:

Music as a Trading Companion

• A Sensory Soother: Music has the unique ability to engage without overwhelming the senses, creating an ideal backdrop for trading focus.

• Individual Impact: Music affects individuals differently, evoking a range of emotions, from calming and soothing to stimulating and invigorating.

Science on Music's Influence

In general, scientific studies have provided insights into how music affects our cognitive performance and mood:

1. Increased Accuracy

• Evidence of Efficiency: Radiologists in a study displayed improved efficiency and accuracy when listening to music during repetitive tasks, such as diagnosis. It outperformed a group that did not incorporate music into their workflow. This suggests that music can enhance pattern recognition and decision-making in trading.

2. Enhanced Focus

• Lyrics vs. Instrumentals: A study involving 102 workers indicated that music with lyrics can be distracting and detrimental to concentration and attention. When aiming to maintain focus during trading, instrumental music or ambient sounds may be more beneficial.

3. Instant Mood Elevation

• Major Key Impact: Research on background music's impact on anxiety, communication satisfaction, and productivity revealed that music in a major key had a positive influence. It contributed to increased productivity and improved satisfaction in communication. Music, depending on its tonality and key, can uplift or dampen your mood, which in turn affects your trading decisions.

The Subjective Nature of Music

While studies provide valuable insights, the impact of music can vary among individuals. The choice of music genre and tone is a personal preference. What remains consistent in research is that excessively loud music can be distracting and counterproductive. The effects of music on cognitive performance, while significant during listening, tend to dissipate once the music stops, without a lasting impact on the brain.

In the context of trading, the effects of music are more immediate and related to enhancing the trader's emotional state rather than making direct changes to cognitive abilities. If you seek practices that create measurable changes in your brain, meditation may be a more direct choice.

Music and Trading Psychology

While music won't guarantee that you become a better trader, it can be an integral part of your trading routine, contributing to your trading psychology edge. When you develop a routine that aligns with your trading system and enhances your psychological state, achieving your market goals becomes a matter of time. It's not a promise, but a strategy to create an environment conducive to better trading.

Remember, your choice of music can be a personal and individual matter, so explore different genres and find what works best for you in your trading environment.

~MS

Founder, MARS EQUITY