Music influences our lives in a number of ways. It inspires us to dream, gets us moving while working out and helps us relax or stay motivated. Therefore, it is not surprising that music may also help us to become better traders.
The link between music and cognitive function is a well-established one. Music has been proven to enhance reading and literacy skills, spatial-temporal reasoning, mathematical abilities and emotional intelligence.
It has also been linked to positive physiological improvements such as pain relief, reduced blood pressure and improved immunity functions. What else could a trader want?
Bellow we will talk about 4 ways listening music may help improve your trades.
#1 Listening to music can improve processing speed
Research has found that processing speed performance greatly improves when listening to certain kinds of music (in this case, Mozart). Processing speed – a measure of cognitive efficiency that involves quickly and fluently performing tasks – is extremely important for traders, who must constantly process large amounts of data in order to enter of exit a position.
In order to multitask effectively, traders must be alert and assertive. Listening to your favorite song may greatly aid in that respect.
#2 Listening to music may increase concentration
Medical research has established a direct link between listening to music and increased concentration. According to a study conducted by the Stanford University of Medicine, music engages the areas of the brain involved with paying attention, making predictions and updating the event of memory.
When trading the financial markets, it is important to respond with heightened attention to news events, emerging trends and other factors that could impact your trade. The research is pretty clear that having on in the background may improve your concentration and your overall responsiveness.
#3 Listening to music can relieve stress
If you plan on becoming an excellent trader, you need to manage your emotions. Managing how you react to stress is one of the best ways of accomplishing that.
Listening to music while you trade may help you reduce stress so that you can concentrate on executing the right trades at the right time.
Music can help you eliminate negativity bias, allowing you to focus on positive experiences.
#4 Listening to music can inject fun into trading
We do not need science to prove this point. Trading, like most things in life, is much more fun when our favorite songs are playing in the background. People listen to music while working, studying, cleaning, training or driving. Why should trading be any different? A more enjoyable trading experience will keep you motivated to keep going.
While music alone cannot improve your trades, it can greatly reduce stress and remove daily distractions that often get in the way of success. If you decide to experiment with music it is important to start off slowly.
Make sure your trading alerts are still audible and that your music player is not slowing down your CPU. It may be best to listen to music on your phone, tablet or any other device that is not attached to your main workstation.