This discussion draws from insights shared by psychologist Andrew Meneker, a day trading coach based in San Francisco. The text has been edited for brevity and clarity.
To begin with, I never intended to become a coach specializing in trading psychology. Actually, years back, my knowledge of the market was nearly non-existent—my college experience included just a single Economics class. That was it.
I kicked off my career in the US Navy, working as an independent psychological consultant for various agencies, including NCIS, the FBI, and the Secret Service, focusing on threat assessments and hostage negotiations. Initially, I felt like a fraud after completing my graduate studies, but oddly, I adapted into the role with some ease.
Lucky for me, Wells Fargo caught wind of my reputation while I was still in the Navy. After completing a postdoctoral internship there, I was onboarded as a psychological consultant for their trading desk. Again, I felt somewhat out of place—no financial background, a fresh doctorate, a bit lost. Still, the team at Wells Fargo recognized potential in me.
My first client was a trader at an institution where massive amounts of money changed hands at the click of a mouse. That was my first brush with actual trading.
After several years consulting on Wall Street, I decided to dive into trading myself. It was during the 90s in San Francisco, amid the dot-com boom. Stocks surged, and I thought, “Wow, I want this for myself.”
That turned out to be a relatively easy foray—prices were climbing, and my account ballooned from $25,000 to $150,000 in just six months, earning me a spotlight in a book about successful trading. I’m still actively trading today.
Now, I run my own coaching practice working with various traders, including those on Wall Street, proprietary traders, and retail traders alike.
People often approach me with trading-related issues: “I can’t stick to my plans.” “I struggle to cope with losses.” “I trade too frequently.” What many fail to realize is that trading doesn’t exist in isolation. Your life experiences, whether you’re on a bank desk or a hedge fund, affect your performance, even if you’re not fully aware of it. My role is to help them see that connection.
I refer to it as trading for your “internal market.” This includes your emotional and physical states—like sleep patterns, hormone levels, and overall mental wellbeing—as well as your life experiences and relationships. Once traders grasp how their internal market operates, it alters their perception of what they see on their screens. I often find myself acting as a life coach, assisting clients with matters beyond just trading—things like marriage, divorce, and parenting.
Big Self
When I was featured in that trading success book, my ego got quite the boost. However, shortly after its release, I encountered a significant downturn, marking the largest drawdown of my career.
I frequently discuss this with clients, describing it as a “recognition trap.” With fame comes pressure, and it can hinder performance—something I experienced firsthand.
Some clients have no problem recognizing their inflated egos, but more often than not, they need someone they trust to help them see the truth.
Too Aggressive
Around 70-80% of my retail clients tend to be overly aggressive in their trading approaches, often resulting in impulsive decisions and excessive activity. They struggle to wait for the right moments as per their plans.
When they face losses, the desire to recover their money leads to what I call “revenge trading,” which typically exacerbates the situation.
It’s Too Scary
I have a client who often finds themselves paralyzed in decision-making. This is commonly seen among traders who are also software engineers, as their background emphasizes precision—everything is either right or wrong. If they can’t be perfect, they hesitate to act.
The reality is that the market isn’t perfect and often feels chaotic. Those who are risk-averse generally struggle as traders.
Solution
Journaling. It’s crucial for every trader to keep what I call a real-time emotional journal. Questions like “What am I feeling right now?” and “Why do I feel this way?” can help guide reflections. When you write these down, it prompts a deeper understanding.
Many traders find themselves fixated on their screens, feeling an automatic urge to execute trades. The key is to remember that you always have a choice. Recognizing this reflex can illuminate when you’re under pressure—there’s no need to hit that button uncontrollably.
Regulating the nervous system. Feelings of anxiety activate our fight or flight responses. This instinct can often lead to poorly timed trades. If you can achieve a state of calm, those urges may not be as intense.
Tracking your heart rate can be helpful if you have the tools; otherwise, simply practicing slow breaths when you’re stressed can make a difference.
Health matters. When I begin working with a new client, I delve into their overall well-being. Questions about diet, exercise, and sleep can reveal how they perceive and interact with the market.
For instance, if you didn’t sleep well the night before, it’s best to refrain from trading. I’ve observed a clear connection between lack of sleep and poor trading performance.
