Trading in twilight: sleep deprivation makes you a worse investor

“We test whether mental alertness, as proxied by sleep disruption, impairs investor trading performance. Using four complementary approaches, we document that retail investors who experience a later sunset time on average earn lower abnormal returns on their trades.”

Trading in twilight: sleep deprivation makes you a worse investor

“We test whether mental alertness, as proxied by sleep disruption, impairs investor trading performance. Using four complementary approaches, we document that retail investors who experience a later sunset time on average earn lower abnormal returns on their trades.”

https://www.nber.org/papers/w33477

The Farcaster formerly known as Kchamp. Books, beats, bodybuilding, bright ideas and beautiful things.

katherinechampagne.com

Farcaster-native research: https://paragraph.xyz/@matthewb | prev. Juicebox, Nouns, RAW DAO | casting about coffee, hi-fi, and other rabbit holes

luckily for crypto traders, being mentally impaired might actually be beneficial

Hi, I’m Jack.🤷‍♂️ chronically unserious, cautiously cynical

That’s about it. The Zizian cult that went all crazy was fucking with their sleep and I personally suspect it was a huge driver of their nonsense

Is there anything that sleep deprivation will make me better at besides hearing the voices in my head more clearly?

Co-founder, Scout Game. 
https://scoutgame.xyz

My thoughts exactly. Would be amazing to see this whole thing replicated with crypto markets (although not sure you can exactly)

definitely increases propensity for emotional/irrational decisionmaking

great irony that many crypto traders glorify "locking in" but is actively harmful for performance if you aren't sleeping, working out etc.