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How do testosterone levels impact trading/investing?

We can say at some point that the stock market affects our mental health as well as our sexual life also. All the sexual activity in males is attributed to a single hormone known as Testosterone. Therefore the logical conclusion is that activities such as trading and investing must have an impact or are correlated to our testosterone levels and vice-versa.

Testosterone
Testosterone – Image Health Kart

Does a higher level of testosterone improves our trading or investing activity?

Testosterone plays a role in sexual behaviour and competitiveness. It rises when you do prepare for something meaningful. As it is said winners have it all. The level of testosterone rises in those who people with a higher success rate and it falls in the losers.

In research, they said that testosterone in the morning had a high profit. It believes that high testosterone elevates appetite for risk and confidence and adds to the performance of traders. When a trader makes money testosterone increases, with a number of traders at the same time making profits then it might exaggerate the upward movement of the market that results in the raging bull run or the bull market.

Image Courtesy - Shutterstock Bull Run
Image Courtesy – Shutterstock Bull Run

Are women better at investing than men?

According to a study women are good investors may be because of low levels of testosterone that donโ€™t force them to invest without thinking. Fidelity research found that men underperformed women by almost a half of the percentage point each year, which can add up to huge losses over an investing lifetime because women are apt to stay calmer than men in a down market. You know men trade 45 percent more often than women do and although men are more confident, they tend to be overconfident.

Fidelity Research

Trading without enough research, men reduce their net returns and studies show that women spend more time researching their investment choices and they take less risk than men it can be due to testosterone. People discourage women as they indulge in excessive shopping but it turns out that they are good investors. A financial advisor who assumes their female clients with less control over their investment. Women investors consistently outperform with hundreds of thousands of dollars more at retirement.

Women Investor
Women Investor

Finance Industry & Sexual Behavior

According to a report people in the financial industries only have sex twice a month, compared with other sectors. It is usually because of the stress they encounter. When you have stress you have a low level of testosterone resulting in weak libido. On top of this even if you do indulge in sexual activity you don’t feel the pleasure of orgasm. People have also complained they have an early erection or no erection because of stress.

In a new study sex and stress hormones of financial traders could explain the behaviour that feeds the stock market and bubbles and crashes. In one study they said that body steroid hormones affect financial risk-taking. They found that traders who have a high level of testosterone in the morning may be a higher than average gets to profit in the stock market. Also, the level of cortisol hormone associated with stress increased with the volatility in the market.

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Arshit Singh

M.Sc Clinical Psychology - IGNOU, D.El.Ed - P. L. Memorial. P. G. College Bio - I am Arshit Singh a content writer. I had also worked for a number of YouTube channels. You can just tell me your story and I will assure you that you will again fall for your story and narrate yourself as no one can. Give me words, I will make sentences and tell you how beautiful your story is! #soap banane se soap girane tak

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