If you ask most traders what they need to improve, they’ll usually point to the usual suspects: better risk management, stronger psychology, refining their edge, managing FOMO, sizing more consistently.
But almost no one points to the one thing that affects everything — your execution, your patience, your impulse control, your learning, and even your emotional resilience.
Sleep.
And if you’re surprised, trust me — I was too. Sleep ended up being one of the strongest correlated variables to my PnL. Nothing else even came close. I genuinely couldn’t believe how heavily it impacted my trading.
If you think showing up tired or hungover “won’t matter that much,” you’re wrong. A professional athlete wouldn’t dare show up to game day unfocused, under-rested, or mentally off. They’d get benched. The difference is they have teammates to carry the load. You don’t. As a trader, your livelihood depends on your performance every single day.
And when you’re sleep-deprived, the effects are subtle but destructive:
- Slightly slower decisions
- Slightly weaker willpower
- Slightly reduced focus
Those small margins compound — and the consequences can be severe.
What many traders don’t realize is that they’ve normalized being chronically under-slept. They think, “I feel fine.” I’ve coached a dozen traders who said this — including some of SMB Capital’s top performers like Swang — and every single one discovered they were operating far below their true potential once they fixed their sleep.
How I Realized Sleep Was a Massive Edge
I kept noticing patterns in my own trading — my best performance always came after great sleep. My worst always correlated with poor sleep.
Around the same time, the book Why We Sleep by Dr. Matthew Walker came out. That book completely shook me. It forced me to recognize how much I’d been ignoring something fundamental.
And living in a city made it worse — dinners, drinks, social events, late nights. There was always something going on. I was burning the candle at both ends, convinced I was handling it “fine.”
Then sleep wearables started gaining traction. I bought an Oura Ring and immediately integrated my sleep score into my daily report card — my “temperature check.” Every morning I graded myself from A to F, with sleep as one of the strongest inputs.
If I slept poorly, I wouldn’t trade. I’d do productive work instead.
If I slept exceptionally well, and the market was active, I’d consider increasing my risk.
Think about that: if sleep affects your decision-making, creativity, emotional control, and focus — why wouldn’t it be part of your risk model?
The Wake-Up Call
Even after years of trying to improve my habits, I still struggled. Eventually I worked with a team of sleep specialists who ran an in-person study.
Their findings were brutal:
- I was getting almost no deep sleep
- My 6–6.5 hours per night were not sufficient
- I needed 8 hours, minimum
- Checking markets before bed was overstimulating my brain
- And the moment I woke up, checking the markets immediately triggered more stimulation
- This habit loop was destroying my sleep depth and quality
I had conditioned myself into early-morning hyper-vigilance. Once I woke up, I could never return to sleep. And I’ve never been a napper — so the deficit compounded daily.
The solution? Rewiring my habits, step by step. My sleep score improved by over 15% and has stayed elevated ever since.
The Non-Negotiables for Better Sleep
These are the practices that changed everything. If they’re within your control, they aren’t optional.
1. A cold, dark, quiet room
Think cave-like. Under 68°F. No light.
If you can clearly see your hand in front of you, it’s too bright.
A sleep mask is a game changer.
2. No noise
If you live in a city, use white noise to block out environmental sound.
3. Zero alcohol
Yes, zero.
One drink can tank your sleep metrics by 10% or more.
If you do drink, the earlier the better.
4. No caffeine after 1 PM
Even if you fall asleep, the depth and quality are impaired.
5. Daily movement + morning sun
Walks, stretching, exercise — all of it supports your circadian rhythm.
Morning sunlight helps your body anchor wakefulness and sleep cycles.
6. No phone, laptop, or electronics in the bedroom
This was one of the biggest shifts.
Bedrooms are for sleep. That’s it. No markets. No charts. No emails.
7. Don’t overhydrate at night
Wake-ups kill sleep cycles. Go to the bathroom before bed.
8. No bright light or stimulating activities before bed
No stressful emails.
No scanning markets.
No doom-scrolling.
This is still one of the most important parts of my nightly routine.
9. Give yourself an 8.5–9 hour window
Most people don’t even give themselves the chance to hit 8 hours.
And no — you are not genetically capable of thriving on five or six hours.
Nobody is.
Consistency Matters as Much as Duration
Go to bed and wake up at the same time every day — weekends included.
Not always realistic, but the more consistent you are, the better your performance will be.
Avoid heavy, spicy meals late at night.
The lighter the dinner, and the earlier it is, the better you’ll sleep.
If You Want to Go Extreme
A sauna a few hours before bed raises your body temp, which then drops, helping you fall asleep faster and sleep deeper.
If you have a bad night of sleep, avoid caffeine and alcohol the next day — otherwise you’ll get stuck in the stimulant cycle:
Bad sleep → more caffeine → can’t sleep → repeat.
Andrew Huberman has also shared a powerful tool: Non-Sleep Deep Rest (NSDR) — essentially a meditative reset for days when you didn’t sleep well.
If you’re lying awake unable to fall asleep, don’t stay in bed stressing.
Get up, read in dim light, and reset your mind.
And if you suspect something deeper — like sleep apnea — get tested. It’s far more common than people think.
The 80% Rule
Sleep takes effort, sacrifice, and discipline — especially with jobs, kids, travel, and life in general.
Aim for 80% compliance.
Be consistent during the week.
Let the other 20% be worth it.
A few fewer drinks on a Friday, or cutting alcohol during the weekdays entirely, can completely change your routine.
The trade-off is real. And it’s worth it.
If Professional Traders Treat Sleep Like a Weapon, Why Aren’t You?
I cannot overstate how much improving my sleep changed my trading and my life.
And I’ve seen the exact same transformation in the traders I mentor.
Sleep is the lowest-hanging fruit in the entire trading game.
If you want to perform at your best — day after day — start here.
Dial in your sleep. Everything else improves.
