Hormones, the trading floor and a recent study

Morning testosterone levels can predict a male stock traders successes for a day; more testosterone, more risk taking  and more profit.  Sometimes, that  is.  But stress can up the cortisol level and end up with a lethal combination.  Lethal, that is, to rational decision making.  From Nicholas Kristoff:

Yet the same study also suggested that elevated testosterone levels could lead to greater assumption of risk; high testosterone levels “may shift risk preferences and even affect a trader’s ability to engage in rational choice.” In other words: when male traders crash … boy, they crash.

And some people worry about the effects of so-called PMS in the work environment!

The study is just one study, but it is published in the prestiguous Proceedings of the National Academy of Sciences.

3 thoughts on “Hormones, the trading floor and a recent study

  1. Who is the “recent student” of the title here? I’m curious. Methinks I’ve known a few (but maybe more among colleagues than students.) ;-)

Comments are closed.