1
|
Singh M, Xu Q, Wang SJ, Hong T, Ghassemi MM, Lo AW. Real-time extended psychophysiological analysis of financial risk processing. PLoS One 2022; 17:e0269752. [PMID: 35877608 PMCID: PMC9312384 DOI: 10.1371/journal.pone.0269752] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [MESH Headings] [Track Full Text] [Download PDF] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 02/24/2022] [Accepted: 05/27/2022] [Indexed: 11/19/2022] Open
Abstract
We study the relationships between the real-time psychophysiological activity of professional traders, their financial transactions, and market fluctuations. We collected multiple physiological signals such as heart rate, blood volume pulse, and electrodermal activity of 55 traders at a leading global financial institution during their normal working hours over a five-day period. Using their physiological measurements, we implemented a novel metric of trader’s “psychophysiological activation” to capture affect such as excitement, stress and irritation. We find statistically significant relations between traders’ psychophysiological activation levels and such as their financial transactions, market fluctuations, the type of financial products they traded, and their trading experience. We conducted post-measurement interviews with traders who participated in this study to obtain additional insights in the key factors driving their psychophysiological activation during financial risk processing. Our work illustrates that psychophysiological activation plays a prominent role in financial risk processing for professional traders.
Collapse
Affiliation(s)
- Manish Singh
- MIT Laboratory for Financial Engineering, Cambridge, Massachusetts, United States of America
- Department of Electrical Engineering and Computer Science, Massachusetts Institute of Technology, Cambridge, Massachusetts, United States of America
- Computer Science and Artificial Intelligence Laboratory, Massachusetts Institute of Technology, Cambridge, Massachusetts, United States of America
| | - Qingyang Xu
- MIT Laboratory for Financial Engineering, Cambridge, Massachusetts, United States of America
- Operations Research Center, Massachusetts Institute of Technology, Cambridge, Massachusetts, United States of America
| | - Sarah J. Wang
- MIT Laboratory for Financial Engineering, Cambridge, Massachusetts, United States of America
| | - Tinah Hong
- MIT Laboratory for Financial Engineering, Cambridge, Massachusetts, United States of America
| | - Mohammad M. Ghassemi
- Department of Computer Science and Engineering, Michigan State University, East Lansing, MI, United States of America
- Ghamut Corporation, East Lansing, MI, United States of America
| | - Andrew W. Lo
- MIT Laboratory for Financial Engineering, Cambridge, Massachusetts, United States of America
- Operations Research Center, Massachusetts Institute of Technology, Cambridge, Massachusetts, United States of America
- Department of Electrical Engineering and Computer Science, Massachusetts Institute of Technology, Cambridge, Massachusetts, United States of America
- MIT Sloan School of Management, Cambridge, Massachusetts, United States of America
- Computer Science and Artificial Intelligence Laboratory, Massachusetts Institute of Technology, Cambridge, Massachusetts, United States of America
- * E-mail:
| |
Collapse
|
2
|
Hughes A, Kumari M. Testosterone, risk, and socioeconomic position in British men: Exploring causal directionality. Soc Sci Med 2019; 220:129-140. [DOI: 10.1016/j.socscimed.2018.11.004] [Citation(s) in RCA: 5] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 06/21/2018] [Revised: 10/31/2018] [Accepted: 11/02/2018] [Indexed: 12/16/2022]
|
3
|
Welker KM, Roy ARK, Geniole S, Kitayama S, Carré JM. Taking risks for personal gain: An investigation of self-construal and testosterone responses to competition. Soc Neurosci 2017; 14:99-113. [DOI: 10.1080/17470919.2017.1407822] [Citation(s) in RCA: 7] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Submit a Manuscript] [Subscribe] [Scholar Register] [Indexed: 01/13/2023]
Affiliation(s)
- Keith M. Welker
- Department of Psychology, University of Massachusetts Boston, Boston, MA, USA
| | - Ashlin R. K. Roy
- Department of Psychology, University of Massachusetts Boston, Boston, MA, USA
| | - Shawn Geniole
- Department of Psychology, Nipissing University, North Bay, Canada
- Department of Basic Psychological Research and Research Methods, Faculty of Psychology, University of Vienna, Vienna, Austria
| | - Shinobu Kitayama
- Department of Psychology, University of Michigan, Ann Arbor, MI, USA
| | - Justin M. Carré
- Department of Psychology, Nipissing University, North Bay, Canada
| |
Collapse
|