ABSTRACT
This chapter discusses that prolific and enduring existence of fraud in the financial markets constitutes one of the greatest sources of stress to traders and investors. Tales of lavish parties, prostitutes, drugs and insider trading characterised the heady reminiscences of his time at Galleon. At first glance, traders and high testosterone seem willing and useful bedfellows, given the fact that high testosterone levels were found to correlate with higher intraday profits. The dominant behaviours associated with testosterone can also produce a defensive ego-protective response. Dopamine exerts a significant effect on an individual's attitude to risk and on their emotional state. Adolescents with fewer dopamine receptors make riskier decisions, and dopamine generally exerts a profound effect on financial decision-making behaviour. Many people are not aware that it is possible to become addicted to stress. Addictive behaviour, in turn, can cause impulsive and damaging behaviours. Unpredictability spikes cortisol, the stress hormone, with long term exposure risking adrenal fatigue and burnout.
