High testosterone levels mean higher profits
Testosterone is a steroid hormone which can have an effect on competitiveness and sexual behavior. Take for example, in sports, testosterone does not only improve muscle growth but it also causes a risk-taking behavior and a higher self-confidence among athletes. A high testosterone level could even bring about a “winner effect”.
Studies conducted by a research team from the University of Cambridge showed that testosterone also has the same effect to male traders in the financial sector.
The study employed male traders from London. The researchers followed their subjects for eight consecutive days. To obtain their testosterone levels, saliva samples were taken from each subject once in the morning and once in the afternoon. Furthermore, records of each trader’s loss and profit were also obtained at the time of specimen collection.
Researchers found that those traders who made significantly higher profits than their daily average also have higher levels of testosterone.
This led the researchers to speculate that an elevated level of testosterone could bring about a positive effect especially to the decision-making capability of an individual. However, a continuous rise in the testosterone level could have disastrous effects. It could make the individual irrational and impulsive when it comes to making decisions. Extreme levels could create euphoria and mania in an individual. They finally concluded that hormones indeed play an important role when it comes to an individual trader’s decision-making.
From The Medical News:
When City traders have high morning testosterone levels they make more than average profits for the rest of that day, researchers at the University of Cambridge have discovered.
