Medical Insights: Why Traders Who Have More Sex Make More Money

In the immortal words of Bruce Springsteen, ‘In the day we sweat it out on the streets of a runaway American dream’. But few of us realize that traders on the Street – in their case, Wall Street – really are living by the Boss’s words. In fact, recent studies show that traders need healthy testosterone (T) levels as much as any athlete. That’s because traders, like athletes, tend to have higher genetic testosterone levels.

Read on to find out exactly why traders need to learn to manage those T levels if they want to maximize profits – and why traders who have a great sex life are more likely to achieve that goal.

Traders: The Athletes of Finance

One reason why traders and athletes are similar in a biological sense is because traders are more likely to have a ‘thrill junkie’ personality. Thrill junkies are high-testosterone, risk-seeking individuals who take a risk-oriented approach to life. That’s partly because high T levels also make us feel more confident, strong, focused, competitive and goal oriented. The result? More adventures and the ability to take a leap of faith.

So far, so good, right?

But there is a downside. Left unchecked, T levels can elevate excessively. This is because trading increases T levels, alongside dopamine, the pleasure hormone. A sharp increase in both, over a long period, can cause overtrading. It can also cause overly risky behaviour, and the onset of gambling tendencies and addictions.

In fact, a common, much studied phenomenon in the financial markets, is the boundary between trading and gambling, which can often blur dangerously. The result? Major financial losses, high levels of stress, under performance, and, possibly, even personal harm. This phenomenon underlines the need for traders to manage out T levels and to be aware of the biology driving their decisions.

Testosterone Drives Performance

Cambridge University Professor John Coates explains the fascinating link between testosterone and trading profits. He noted that

‘Trading, it is not often appreciated, is a physical activity…high testosterone levels or increased androgenic effects, for example, can increase vigilance and visuo-motor skills such as scanning and speed of reactions…qualities that may help traders to spot and trade price discrepancies before others arbitrage them away.’

Coates suggests that traders, subsequently, should consider training like athletes to gain a competitive edge and maximize their P&L.

That’s great advice, but not everyone has time to hit the gym regularly, let’s face it. But the great news is that there is another (perhaps surprising) way to optimize those T levels & ramp up profits. And the best news? It’s super pleasurable.

The answer?

Have more sex.

How Sex Helps You to Trade More Effectively

We know that regular sex can help you become more profitable on the trading floor because of its effect on T levels. This is exactly one reason why the US Institute of Labor Studies recently confirmed that American men who have sex make more money!. So why does pleasure in the bedroom equate to higher profits on the trading floor? Here’s a quick breakdown of the science.

Sex is a cardiovascular activity, functioning similarly to exercise. As such, it offers powerfully restorative, amphetamine-like effects within the body that control anger and aggression. It enhances cognitive reasoning, executive and top-down cognitive control,  enables more efficient decision-making and enables us to cope with stress far better. All genuinely important abilities for a trader or investor.

Sex also offers additional benefits that exercise cannot. It floods the body with oxytocin, which makes us calmer and more emotionally balanced. It powers deep, high-quality REM sleep, crucial to mental health. Sleep is also crucial for performance as testosterone levels can tank by around 15% with 5 or less hours sleep. In a financial markets scenario, that ultimately means less risk of trader burn out (high T can increase burnout risk), and an ultimately longer and more profitable trading career.

Protecting your Health – and Wealth

But here’s the bad news.

Unfortunately, financial markets traders tend to have less sex than other professions, mostly because of long hours spent at the office, and a natural, age-related decline in male sex hormones, usually from the mid-40’s onwards (we can help with that!). That’s all compounded by the daily cortisol-spiking effects of trading (which down regulates testosterone).

Ultimately, getting your sex life back on track should be a priority – because more pleasure in the bedroom can lead to higher profits on the trading floor.