CONJURE up an image of a financial risk-taker, and you’ll probably picture an aggressive Wall Street trader, testosterone surging as he closes the deal. But new research suggests that people with low levels of the male sex hormone are also likely to take financial risks.
Previous studies have linked high levels of testosterone to certain risk-seeking behaviours. To investigate whether financial risk-taking follows a similar pattern, Scott Huettel at Duke University in Durham, North Carolina, measured the testosterone levels of 298 people, who then took part in trials in which they chose between a fixed known reward or a gamble between getting a payout – mostly larger than the fixed reward – or nothing.
…Surprisingly, the biggest risks were taken by people with very high or very low testosterone, compared with the average levels for their gender.
You know what they say about guys driving monster trucks. Now it seems we can apply the logic to the size of your broker’s yacht & dinghy (I couldn’t resist). So, after you pick yourself up off the floor from laughing, jump on over and read the rest.
(ht: Zack Miller)
Low testosterone linked with financial risk-taking – New Scientist
The Dark Side of Freedom – The Reformed Broker (w/ Dinosaur Trader)
When your Trade goes VERY wrong (video) – I heart Wall Street