Coffee, Trading and You

The appropriate state of mind while trading is often discussed and written about. Related topics include attitude, visualization and relaxation techniques, physical fitness, diet and so on. The intake of caffeine is occasionally addressed, albeit tangentially as it relates to trading. In this thread, I would like to specifically address the consumption of caffeine while trading.

Conventional wisdom dictates that (undue) stress while trading is detrimental to performance. Indeed, all traders at one time or another (and some more frequently than others) experience the "fight or flight" response, as coined by Walter Cannon, the famous Harvard physiologist. The question is, in your experience, do you believe that the intake of caffeine has exacerbated this decidedly unproductive response in your trading? If so, have you curbed your caffeine intake and did you experience any improvement in your state of mind and your trading? On the other hand, there are those who believe that caffeine enhances mental acuity. What is your experience?

I suppose that the issue of coffee and trading could be either innocuous or insidious. Innocuous because its effect may be incidental on the outcome of our trading. Insidious because it is such an ingrained and accepted habit for so many people, that they (we) may not even be aware how it has subtly affected our outlook and behavior. Since trading is "measured in inches," I imagine that subtle changes could potentially have dramatic effects on overall performance. What are your thoughts?

As an aside, I imagine that the issue of caffeine is less relevant to longer-term traders and investors since they have the fullness of time in which to conclusively arrive at their trading decisions. However, for the short-term trader who uses even a minute amount of discretion in his or her trading, the effect could potentially be more pronounced.

For my part, I do get stressed while trading more often than I care to, and I do drink coffee. While I will not go so far as to say that the coffee causes the stress, I think it would be fair to say that it does not help either. I will be easing off of coffee to see if there is a difference.

Regards,

Thunderdog

 

why do we care?

 

Actually, I asked a few questions. But thank you for your splendid input.

 

...talk about the pot and the kettle...

 

I find any energy drink, Gatorade, Red Bull, coffee or tea makes a splendid addition to trading. I could not trade without a cup of java in the morning.

 

"I trade coffee, but not while I drink"

 

Tea, coffee and me. We used to be three close friends for a long time now and will remain...

 

I can't give up drinking caffinee while trading for over
six hours.

Coffee boost your energy and metabolisem and help
concentration, but excess drinking also cause nervousness
and tiredness, just the opposite.

 

The obvious solution is to stop trading and spend more time devising brilliant polls like this one

 

I traded coffee and drink it.

Have some fond memories of trading coffee. Drinking it, too. I have some fond memories of Dunkin' Donuts. And if it goes public again, I'll trade that too.