Traders With Higher Testosterone Make (And Lose) More Money
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Bloomberg:
Traders who start the morning with high levels of the hormone testosterone, produced in the testes, will probably make more money that day, a study found.
Testosterone creates feelings of confidence and encourages risk-taking that can lead to profit, while another hormone, cortisol, prompts risk aversion when markets are volatile, according to a two-week study of 17 London traders published in the Proceedings of the National Academy of Sciences.
In traders on a winning streak, testosterone will keep rising until the hormone eventually causes manic, irrational behavior, turning the boom into a bust, said study author J.M. Coates, a derivatives trader at Deutsche Bank in New York from 1996 to 2001, during the dot-com bull market.
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First Posted: 04-15-08 08:06 AM | Updated: 04-23-08 05:12 AM