Katz’s Korner: Do Traders Need More Testosterone?

Jun 21st, 2011 | By | Category: Katz's Korner
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I received this email from a new trader:

You’re probably already aware of this correlation between testosterone and performance as it relates to trading. It’s interesting to consider though as direct empirical evidence for the notion that Division I athletes have a proclivity to be good traders, e.g., Adam Guren. It’s something I tried to keep in mind when I interviewed for interns at my last firm.

As traders I guess one should strive to increase our natural levels as odd as that sounds, if it truly is a one way streak. Sounds Like heavy lifting, lots of sleep, and nuts are the way to go then lol.

“Research shows that traders who are in daily possession of more testosterone attack the day with vim, vigor and risk on their minds while traders who have higher levels of Cortisol, a hormone most associated with stress, are more cautious and less likely to make aggressive trades, and often become less successful.”
“Coates took saliva samples from traders and found that those who had higher levels of testosterone in the morning performed better in the afternoon. ”

Read more: http://read.bi/isQadl

I asked Dr. Jonathan Katz, of High Performance Associates, to respond.

Just because there is a correlation between testosterone and performance doesn’t mean you have answered the age old “causation vs association” question! Rather than striving to improve your trading by increasing your testosterone directly your time and energy may be better utilized by focusing on an overall healthy lifestyle filled with vigorous exercise, solid sleep patterns, and a well-balanced and nutritious diet. This same lifestyle approach is likely to ward off and reduce stress levels thereby enhancing the opportunity for peak performance on a regular/daily basis. Live the “process” and trust that the desired “outcome” will be achieved over time.

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  • Johnsmith

    brb buying testosterone injections

  • http://www.investingwithoptions.com/ steveplace

    squats and deads. heavy.

  • http://www.smbtraining.com/blog/ SMB Capital

    @stevenplace if you worked at GS would you pass their drug test :)?  what are you going these days 6’6” 250?  (btw just to be clear I am just kidding with @stevenplace for the record)

  • http://twitter.com/Ajb_2010 John Brown

    run, run and more running,, like marathon training,  half marathon training. make your mind stronger, withstand the pain, think clearly and have inner peace and calm which shed the stress and at the same time u are roaring to go in the AM when u have completed a run :D.. and still steady and strong into the close.

  • http://www.investingwithoptions.com/ steveplace

    6’7″ and 235, i’m cutting a bit right now

    and i would pass their test :)

  • http://www.smbtraining.com/blog/ SMB Capital


  • tradezone

    ladies, it’s time to grow them beards

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