Surprisingly, hormones may affect the financial decisions we take. Higher testosterone levels lead to riskier decisions made by traders (Herbert 2016). Nothing ventured, nothing gained right?
Financial trading is a risky profession, where there are high rates of failure. Some make billions and some don’t. It is often young men who like taking risks and engage in highly competitive tasks, which are also the prominent features of a financial trading floor (Herbert 2016). Research showed that on days when an individual trader’s testosterone was high (for him) he made more money. A possible reason could be that higher amounts of testosterone would lead to traders taking slightly more risky decisions or having more confidence in their decision making skills. As long as the decisions are nothing extreme, this may serve as an advantage (Herbert 2016).
So now the question remains, if our hormones also affect our everyday financial decisions as well. For more details, check out this article below!
IRIANS – The Neuroscience Institute