What Music to Listen to While Trading?

What we listen to before, during, and after a trading or learning session can impact our performance as a trader. We typically want to choose music that will help us focus and avoid external distractions.

Why We Should Listen to Music

What we listen to during trading can impact our performance and decision making. We often choose what we listen to subconsciously, whether it’s background music, a podcast, or even silence. 

However, we can also choose what we listen to more intentionally to provide a marginal gain that optimises focus and performance. This is an area to gain an easy advantage, not just for trading, but also your learning.

Research in experimental psychology has found that perceptual acuity and general levels of attention increase as more senses are involved. In other words, vision becomes more acute when coupled with hearing, and both become more acute when coupled with touch.

Old fashioned trading floors may have capitalised on this phenomenon without realising, because they had an intercom to the futures exchanges, with an announcer reporting futures prices. However, for most traders these days this is most likely going to serve as a distraction.

Let’s take a look at what music is likely to be optimal, and when:

1. Before Your Trading Session

Before trading, our goal is to prepare mentally. Listening to music we enjoy for 15 minutes can reduce stress and improve mood, as shown by studies from the Journal of Music Therapy. The genre matters less than how much you enjoy the music, which helps the brain release dopamine, a neurotransmitter that boosts positive moods and improves overall performance.

2. During Your Trading Session

Daniel Kahneman’s limited capacity model of attention indicates we only have so much focus to allocate at once. Music with lyrics or complex beats, like hip hop, can be distracting during trading, as they demand more cognitive processing. However, The more familiar you are with the music, the less attention it drains out of the other tasks being completed since the brain is not focused on decoding the message being delivered.

Light classical or familiar instrumental music helps mask external distractions without significantly drawing away attention. While some may prefer silence, familiar and low-involvement music is often a good choice as it can help block out external distractions.

3. After a Losing Trade or During Stress

Post-trade stress can lead to extreme emotional swings. Music that is known to reduce anxiety, such as "Weightless" by Marconi Union, has been shown to relax listeners significantly, which can help reset your mood. This type of music, which has been found to reduce anxiety by up to 65%, can be particularly helpful after a challenging session.

Although we want to feel alert when we're trading and have no risk of drowsiness. This may prove to be the perfect antidote at times of significant stress, like after losing a trade or at the end of your trading session.

4. During Learning Sessions

When learning new concepts, silence or light ambient music is typically best, as music can distract from complex cognitive tasks. Once you’re comfortable with the material, familiar ambient music can help prevent external distractions without demanding too much attention. 

It’s also important to consider personality: extroverts may benefit from more stimulating music, while introverts might find it overwhelming.

What Should You Listen to?

Experimenting with different sounds can help you find what works best for you. While these guidelines offer a starting point, your personal preferences are also important. By consciously choosing sound that enhances rather than detracts, you can support your trading performance.

If you wanted to go a step further, you could create playlists for each of the categories above, meaning the right music is ready to go when you start your session.