Financial traders are better at reading their ‘gut feelings’ than the general population – and the better they are at this ability, the more successful they are as traders, according to new research led by the University of Cambridge.
New study’s findings overturn theory of personal risk preference as a ‘stable trait’, and show that real source of instability in risk behaviour “lurks deep in the physiology of traders and investors”.
Cambridge researchers have identified a group of traders consistently able to outperform the market, even during the credit crisis.
Financial traders' success may depend more on their biological traits than on their ability to make rational choices, researchers at the University of Cambridge have discovered.
© 2024 University of Cambridge