When you close a successful trade, the emotions that flood you are akin to euphoria. And not without reason—at that moment, your brain is literally bathed in a cocktail of dopamine, serotonin, and endorphins. Dopamine, often called the “happiness hormone,” is responsible for feelings of satisfaction and motivation. Serotonin, which regulates mood, creates a sense of calm and confidence, while endorphins reduce pain and elevate mood. This cocktail makes your heart race, your breathing quicken, and you feel as if the world is at your feet. But there’s a downside—you lose your objectivity.

Euphoria drives you to take risks, creating a false sense of infallibility. You’re convinced that your next trade will also be a winner, and you enter the market again and again, losing caution. On a physiological level, this is because dopamine is addictive, and your brain starts craving the repetition of those pleasurable sensations, ignoring potential risks. In this state, a person loses touch with reality, and any minor event can lead to catastrophic consequences.

But what happens when things don’t go as planned? At first, you feel slight anxiety, then fear, and finally, panic sets in. Adrenaline and cortisol, the stress hormones, begin to circulate through your body, raising your blood pressure, quickening your pulse, and preparing you for “fight or flight.” However, in trading, neither option is suitable. Under the influence of adrenaline, you start making decisions faster than you can think, and they’re often the wrong ones.

Cortisol, which typically helps in critical situations, hinders your ability to assess the situation clearly in trading. It forces your brain to focus on danger, increasing anxiety and amplifying negative emotions. As a result, you find yourself trapped by your own body, which thinks you’re saving your life rather than simply managing numbers on a screen.

Let me share a story from my experience when I was still young and green in the fiat market. One fine evening, five minutes before the session’s close, I decided to open a long position on some stocks. In my haste, I mixed up the volumes and entered 10,000 contracts instead of 100.
By the time I realized my mistake, the session had already closed. I was in a panic. The entire night was spent monitoring the news and endlessly going over scenarios in my head.
The next morning, ten minutes before the market opened, I was on pins and needles, nervously awaiting the start of trading. Imagine my relief when the market opened in my favor! I closed the position with a decent profit and felt on top of the world. But instead of taking a break, I decided to keep trading.
The result? I made so many mistakes that my losses nearly matched what I would have lost had the market moved against me. Why? Because a sleepless night and endless stress had drained my physical and mental resources.

With the advent of cryptocurrency trading, the life of a trader has become even more complicated. Trading goes on 24/7, and every hour can be crucial. In such conditions, even the most resilient traders begin to wear down. And what if you’re up against robots? You can set stop losses and take profits, but can you sleep peacefully knowing that an unforeseen event could happen at any moment?

Chronic sleep deprivation, irregular eating, constant anxiety—this is a direct path to burnout. In such conditions, your brain operates at its limit, and its ability to assess situations accurately diminishes. You might think you’re thinking clearly, but in reality, your decisions could be far from objective.

Strangely enough, one of the key aspects of a trader’s life is healthy eating and regular rest. Coffee and energy drinks, which traders love so much, are not the solution. They provide a short-term effect, followed by even greater exhaustion. It’s important to eat in a way that maintains a stable energy level throughout the day. Foods rich in proteins, omega-3 fats, antioxidants, and B vitamins can help mitigate stress.

Regular breaks and adequate sleep aren’t luxuries—they’re necessities. They allow your brain to recover and prevent stress from building up. You should also pay attention to physical activity. Moderate exercise reduces cortisol levels and promotes the release of endorphins, helping to maintain a positive mood.

Numerous studies show that during financial crises, the mental state of traders worsens significantly. In times of high volatility, market participants experience extreme stress, leading to mood swings and poor decision-making. In such conditions, it’s important to have stress management strategies, such as meditation, breathing exercises, or consulting a therapist.

It’s interesting to draw parallels between trading and gambling. For example, poker players often face the same issues as traders: emotional swings, adrenaline addiction, and distorted reality perception. Success in both trading and poker depends not only on skill but also on the player’s mental state. In both cases, it’s crucial to know when to stop and not let emotions take over, or the consequences could be disastrous.

If you want to trade successfully, whether in fiat or cryptocurrency markets, remember: your physical and mental well-being accounts for at least 30% of your success. You can have the perfect trading strategy, excellent preparation, and an analytical mind, but if you don’t control your emotions and take care of your health, success will be elusive. Trading is not just a numbers game; it’s a serious test for your psyche and body. Take care of yourself and always remember: time for rest and recovery is an investment in your future success.