What makes a good trader? Here’s the science

Jon Asmundsson 40 reading now A stock’s price is ticking up and down on a screen in front of you. Do you rationally evaluate the probabilities that the price will rise before you pull the trigger on a trade? Or do you go with your gut? You may prefer to think superior ability – that mysterious X-factor some traders appear to have – is rooted in the former scenario. But a few years ago, researchers at the California Institute of Technology went to the trouble of taking pictures of people’s brains while they were evaluating trades. Surprise: As rational as you are, you probably opt for that gut feeling a lot. Expertise, or gut instinct? Neuroscientists have found out what makes trader click buy and sell. Photo: Jason Alden Using fMRI…

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