How Taking Breaks Improve Your Trading Performance

When we begin trading, it’s tempting to work nonstop, but our brains need breaks to maintain focus and performance. Studies show that top performers work in bursts of 45 to 90 minutes with breaks in between.

Why We Need Breaks

When we start learning to trade we often try to cram as much in as possible as fast as possible! However, our brains can only focus for so long, they get tired if we try to do too much. Luckily there are techniques we can use to restore our energy.

While it's easy to dismiss breaks, especially during intense work like trading, they have been scientifically proven to be vital for high performance.

Studies from Anders Ericsson show that top performers, such as world-class musicians and athletes, practice in intense bursts of 45 to 90 minutes and then take restorative breaks, which can even include naps. They often work in two main sessions, one in the late morning and another in the evening.

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Let’s get practical and look at how you can structure these breaks throughout the day. There are two important types of breaks we should take:

Firstly, take a lunch break. A proper lunch break away from your desk can reduce stress and exhaustion. To improve this effect, it’s also important for you to choose when to take it.

Secondly are short breaks. Working in cycles, such as 52 minutes of work followed by 17-minute breaks, can also boost productivity and focus. 

That gives us two types of breaks we need to taking throughout the day:

• Lunch breaks
• Short breaks

But what can you do to improve each of those break's effectiveness? 

First up is movement. Sitting for extended periods is not only unhealthy but also contributes to fatigue.  A study found that getting up and walking around for just 5 minutes every hour boosted energy levels and improved focus while improving your mood and reducing afternoon tiredness. You can try stretching or mediation which has shown to also have benefits. 

Secondly, to make the most of your breaks, Interact with other people and spend time in nature. Spending time in nature during breaks can have restorative benefits. If you’re not able to do this, studies have shown that even just watching videos in nature can also work. 

Most importantly, you have to get away from work, including the markets!. So, no checking your phone! 

While these tips will help keep your energy levels high, the afternoon slumps are unavoidable. But some methods can combat them, including eating, exercising, and the most effective method, napping.

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Napping improves your mood, alertness and cognitive performance on tasks involving logical reasoning, reaction time and symbol recognition.

For most people the perfect nap is between 2 pm and 3 pm. That’s right where the afternoon slump is usually going to hit. However, to avoid feeling groggy when you wake up, you should limit the nap time to 10-20 minutes. 

If you want to take your nap to the next level, one study suggests the nappachino. This is where you drink a cup of coffee, and take a nap immediately after. It takes around 25 minutes for the coffee to hit your system, so you should wake up with an extra boost!

This can be an especially good idea if your session is after a work day or you have no alternative but to trade in the afternoon. Now you have the tools to keep yourself energised while you learn.