Testosterone and Behavioral Finance

Work by Dr. John Coates on the neuroscience behind successes on Wall Street is a potential explanation for at least part of behavioral finance. In one of his studies, Dr. Coates found that when a trader had a higher level of testosterone in his system in the morning, he went on to make more money than when his testosterone level was lower. Winning increases testosterone levels further, which lead to more aggressive investments. Similarly, losing increases the cortisol level in the body, which leads to further risk aversion.  http://www.businessweek.com/articles/2012-05-31/managing-wall-streets-winner-effect#p2