Lunchtime Links: A good trader should have the physiology of an Olympian. This is difficult to pick up in interviews

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As we’ve linked to on a regular basis, Financial News has been running a summer series on what it takes to work in particular areas of investment banking and asset management. While most of these have been interesting, inevitably the ‘trader’ profile is more so, simply because it starts talking about hormones and physiology.

This is nothing new; there have been various studies about how testosterone and cortisol have affected decision making on the trading floor – both positively and negatively.

As well as numerical ability – high if you want to trade derivatives, OK if you want to trade cash equities – you need to be able to handle stress. This means having a “low emotional score” and, when your emotions do crop up, being able to handle them.

More interestingly, you also have to be strong physically. John Coates, senior research fellow at Cambridge Judge Business School, said: “The evidence suggests that good traders would have a very similar physiology to an Olympic athlete: someone who has a good ratio of anabolic to catabolic hormones and whose steroid hormones spike when required. Unfortunately, this isn’t something you can pick up from a CV. And if you can’t ask someone’s age in an interview, you certainly can’t ask for a DNA test.”

Meanwhile:

Matt Taibbi: Wall Street is overpaid and our best minds suck at investing (Rolling Stone)

Four reasons why this rant is wrong (Reformed Broker)

Moore Capital’s problems are indicative of the issues facing macro funds (Financial Times)

The world is moving to “vanilla”: how Dodd-Frank will hit profits and bonuses (Financial Times)

Unelected officials at the Bank of England will soon have too much power (Guardian)

Schroders has lost its multi-asset funds co-manager (Financial News)

Staff costs make up only 20% of expenses in equities. Nonetheless, more cuts are coming (Reuters)

“Candle in the Wind’ is the top song and ‘Titanic’ is going to win the Oscar, so don’t go telling investors that it’s essentially the same company as it was in 1997, that’s not the case and by the way, it’s not a close call.” (Bloomberg)

Cantor Fitzgerald is also expanding into clearing (PR Newswire)

Hedge funds now account for 24% of trading in the bond market (Reuters)

Commerzbank is also under investigation for Iran sanctions (Telegraph)

Meet the author of such thrillers as ‘Bankster’, ‘Devil in Pinstripes’ and ‘The Incredible Banker’…(WSJ India)

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