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Traders in Tune With Their Heartbeat Make More Money

  • Study shows those who can sense body signals perform better
  • Markets selecting traders by physiology, neuroscientist says
Source: Getty Images

Traders who are better at listening to the clues their bodies give them about market patterns make more money and survive longer in the industry, according to a study by former Goldman Sachs Group Inc. derivatives trader-turned-neuroscientist John Coates.

Coates, whose 2012 book “The Hour Between Dog and Wolf” revealed how traders’ decisions are influenced by biology, wanted to find out whether gut feelings were valid signals or just noise. So, along with medical researchers at the University of Cambridge, he examined the physiology of 18 male high-frequency traders working at a London hedge fund. The results, published Monday in online journal Scientific Reports, show risk-takers who more accurately estimated their own heart rates -- a test for the inward-looking sense called interoception -- made more money than those who were poor at the task.