The Hour Between Dog and Wolf: How Risk Taking Transforms Us, Body and Mind

by John Coates

That study had found that when morning levels of testosterone in male traders were higher than average, the traders went on to make an above-average profit later that day. The reporter for The Economist suggested that traders could test themselves first thing in the morning, and if their biochemistry was not right, they should just go home. It sounds far-fetched, but this practice is already common in sports. Many sports scientists monitor their athletes’ physiology nonstop, and look for just these sorts of signs that they are either ready for an upcoming match or need more work. In fact, today we are in a position to do the physiological spot checks suggested by The Economist. Such physiological monitoring could perhaps help managers tell when traders have succumbed to the siren call of irrational exuberance or the despondency of irrational pessimism.