Scientists Think That Testosterone Affects Stock Prices: Here's What You Should Know

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Mar 6 2017 - 4:16pm
stocks, testosterone, stock market

Your hormones play a key role in your daily life. But did you know they could play as large a role as influencing global stock market prices?

Hormones can affect your mood, sex life, metabolism, energy levels, and more. For men, low testosterone levels can lead to lower energy levels, muscle atrophy, lower libido, and other life-changing effects. But on the opposite end of the spectrum, high testosterone levels for men can lead to overly aggressive behavior, infertility, hair loss, infertility, and acne.

But now researchers think that testosterone levels can influence the stock market significantly. They discovered that for male stock traders, they experience a high after making a profit, which causes them to quickly make risky stock market decisions soon after.

The phenomenon is called psychological momentum, which is when you're experiencing an emotional high and think life is going your way full throttle and that nothing can go wrong. One major factor that causes psychological momentum is a boost in testosterone, which occurs in men right after a successful event (e.g. winning a fight, making profit, etc.). But researchers found that this effect isn't pronounced in women.

The problem is that 90 percent of the participants of financial markets are male. Researcher Dr. Ze'ev Shtudiner says that this testosterone-driven psychological momentum causes male traders to take “exaggerated risks” that, collectively, make price bubbles. He advises that more female traders saturate markets for stabilization purposes since women don't succumb to the effect.

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On the flip side, since enjoying a testosterone boost can raise your confidence and mood, it's good to have a boost here and there. In fact, by manually boosting your testosterone levels during non-crucial decisions, you can improve your self-control by testing yourself when you're experiencing psychological momentum. That means when you experience psychological momentum during high-risk times, you'll be better able to resist making a dumb decision.

Here are a few ways to naturally boost your testosterone:

Take shilajit. Shilajit is a fermented powder common to the Himalayas. It's an Ayurvedic remedy that researchers have proven has anti-cancer properties. It's also been found to boost your cognition and memory. Taking shilajit can also boost your testosterone levels safely.

Get good sleep and lose weight. Dr. George Yu of George Washington University Medical Center advises you to get 7 to 8 hours of sleep every night. He says poor sleep can cause low testosterone levels. Overweight and obese men have been found to tend to have low testosterone levels. Doctors say that losing weight can bring testosterone levels up.

Remember that after an accomplishment, you may get an overwhelming high that can cloud your immediate decisions. Keep a cool mind and try to get used to this high so you can have more self-control.

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