Breaking news in this morning’s Financial Times frontpage: Successful traders can be identified by measuring the length of their fingers.
According to researchers from Cambridge University a longer ring finger compared to the index finger means more success in competitive markets. As stated yesterday, the call-to-put ratio can be send to the trashcan – the 2D:4D ratio is the new king.
Female traders excluded from research
This ratio is affected by the exposure to male hormones when growing in mothers comb. Female traders are rare and excluded in the research. Research was conducted at a London bank. Only 49 traders have been examined. Traders with the lowest 2D:4D ratios had an eleven times higher yearly income than their counterparts with short ring fingers. The ratio varied between 0,9 and 1,02. Always thought I worked hard, but it turns out I just have to thank mum.
Research seems flawed
There’s something wrong with this Cambridge research. A small sample size (49 traders, 1 bank) and very specific numbers as output (average 680.000 income for top, 61.000 for lower end) makes alarm bells ringing. What’s the size of the hotshot population in the sample? Five, maybe ten – definitely not more. Writing a research based on the genetic traits of ten guys sounds a little silly. Not silly enough to reach the front page on the Financial Times. A while ago the same researchers came up with the testosterone level for traders.