Following on from my previous post, I’ll relate some examples of instances in elite sport which may bring to mind further challenges seen in trading.
TL;DR: These examples should stimulate thoughts on further challenges experienced by Traders which could potentially be addressed by Applied Sport Psychology Theories.
Get in touch with me if you have any thoughts or needs related to these!
| Trader Challenge | Example in Elite Sport | Insight for Traders |
| Overtrading / Impulsivity | Serena Williams’ emotional outburst (US Open 2018) – see video | Even elite performers need Reset Routines to prevent reactive spirals |
| Pre-Event Performance Anxiety | Simone Biles withdrawing from Olympic finals (2021) – see video | Mental overload can derail execution at peak of season |
| Mental Fatigue & Loss of Focus | Sebastian Vettel’s late-race mistakes in the 2018 F1 season– see video | Sustained performance requires proactive mental recovery and rhythm—fatigue leads to unforced errors |
1. Overtrading / Lack of Impulse Control
– Analogy: Serena Williams’ Emotional Outbursts at US Open (2018)
Elite Sport Example:
At the 2018 US Open final, Serena Williams lost emotional control after a disagreement with the umpire. The moment escalated – she received multiple code violations, lost focus, and ultimately lost the match.
The Sport Psychology Connection:
Her reaction was driven by emotional flooding and a breakdown in self-regulation under pressure – similar to a trader who gets stopped out and immediately jumps back in, “violating” their plan for the session.
Key Insight for Traders:
Even the most elite performers are vulnerable to emotional hijack. Without a pre-performance routine or emotional “reset protocol,” one trigger can spiral into performance collapse. Serena would go on to work with Sport Psychologists on this, and integrated meditation into her routine to regain balance in high-stakes moments – just as a trader could use breath work, reset cues, and impulse tracking under similar pressure demands.
2. Performance Anxiety Before Big Events
– Analogy: Simone Biles Withdrawing from Olympic Finals (Tokyo 2021)
Elite Sport Example:
Simone Biles, the most decorated gymnast of her generation, withdrew from key events at the 2021 Olympics due to “twisties” – a psychological disconnect between mind and body brought on by overwhelming pressure. While Simona had the maturity as an elite athlete (likely resulting from years of work on mental performance) to recognise this, it does not mean that it is easy to recognise and thus prevent. It requires preparation.
Sport Psychology Connection:
Like a trader before a major FOMC release or NFP day, Biles experienced a mental overload where she couldn’t perform automated skills safely. This parallels potential performance paralysis and/or reckless decision-making seen in traders during high-volatility market events.
Key Insight for Traders:
Even the mentally strongest athletes have anxiety thresholds. Without pressure simulation, arousal control, and emotional flexibility training, high-expectation events can overwhelm even the best. Biles returned stronger later in the Games, and again in Paris 2024 – not by pushing through, but by respecting mental skills required for elite performance under extreme pressure.
3. Mental Fatigue and Loss of Focus During Long Sessions
– Alternative Analogy: Sebastian Vettel’s Late-Race Mistakes During the 2018 Formula 1 Season
Elite Sport Example:
In the 2018 F1 season, four-time world champion Sebastian Vettel was in contention for the Driver’s World Championship with Ferrari against Lewis Hamilton with Mercedes. However, as the season progressed, Vettel began making critical errors – especially during the later stages of races or during the final third of the season. One of the most pivotal moments came at the German Grand Prix in Hockenheim, where he crashed out of the lead in wet conditions – unforced and entirely due to a lapse in judgment.
Sport Psychology Connection:
F1 drivers operate under intense cognitive strain for up to 2 hours non-stop, constantly processing variables such as speed, grip, weather, team instructions, and rival’s movements. Vettel’s mistakes weren’t technical – they were due to mental fatigue, accumulated stress, and overreliance on instinct under pressure. This mimics a trader’s experience when long hours lead to issues such as reactive decisions, blurred thinking, and uncharacteristic errors – often late in the trading day or toward the end of high-volatility cycles.Key Insight for Traders:
Vettel’s mistakes in 2018 show that even elite decision-makers with flawless skillsets are vulnerable to concentration breakdown when under prolonged pressure. Traders need to treat their decision-making capacity like the limited resource that it is – protecting it with scheduled resets, focus blocks, and decompression periods to avoid the same “unforced errors” that cost Vettel the 2018 F1 world title.
By Julian Hoare
