Testosterone affects earnings and creates profit-winners

Another study flying in the face of PC culture. There’s a lot of people these days, where its popular to be denier of nature. But the truth is, even though a lot of who we are is learned, a lot of is genetics as well… Turns out, the more testosterone someone has, the more likely they are to take on the risky behaviours that long-term result in profits.

And this isn’t the first study of its kind, there’s literally hundreds of them… Testosterone (and hormones in general) affect behaviour and results in many ways.

Testosterone Creates A “Winner Effect” In Stock Trading | GroundReport

Interestingly, not only is the ubiquitous male hormone testosterone great for procreation, its also the deciding factor in who makes more profits. 

In a related study, the Proceedings of the National Academy of Sciences linked cortisol levels to the amount of risks taken by traders. Psychologists also say that this may actually explain the irrational behaviour sometimes seen in investment bankers.

Adding a new twist to the theory, good investors get greedy when Wall Street gets fearful, the researchers found that testosterone levels were higher in traders when they made more than their usual profits – an effect similar to the “winner effect” in athletes.