June 12th, 2012


The Testosterone Index

Market traders make more money on days when their morning testosterone is higher. A great article entitled "What Traders’ Testosterone Tells Us About Markets" explains the details, or you can scan my notes behind the cut.

Market participants aren’t the rational automatons of most financial theory. They are biological organisms responding with a neural and physiological apparatus designed millions of years ago. If what happens in markets affects hormones, these in turn alter behavior and feed back into the markets.

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