Traders make more money on days when their testosterone levels are already high, a research study reported on Monday.
Researchers from the University of Cambridge, looking at male traders in the City of London, found that daily testosterone was significantly higher on days when traders made more than their one-month daily average.
However, constantly high testosterone levels were likely to make traders foolhardy and more prone to taking risks, and generally caused greater volatility in markets.
The study noted that volatility caused by decisions based on emotional and hormonal factors would be lessened by employing fewer young men and more women and older men on trading desks.
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