What Makes a Good Trader? : On the Role of Reflection and Intuition on Trader Performance - Archive ouverte HAL Accéder directement au contenu
Article Dans Une Revue Journal of Finance (The) Année : 2018

What Makes a Good Trader? : On the Role of Reflection and Intuition on Trader Performance

Brice Corgnet
Mark Desantis
  • Fonction : Auteur
David Porter
  • Fonction : Auteur

Résumé

We utilize laboratory experiments to pinpoint three drivers of trader performance: fluid intelligence, cognitive reflection and theory of mind. Fluid intelligence provides traders with computational skills necessary to undertake statistical inference. Cognitive reflection helps traders avoid behavioral biases thereby allowing them to extract signals from market orders and update their prior beliefs accordingly. Theory of mind allows traders to assess the informational content of orders thus offering hints on the quality of those signals. We show cognitive reflection and theory of mind are complementary because traders benefit from understanding signals’ quality only if they are capable of processing them.
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Dates et versions

hal-02312062 , version 1 (27-02-2020)

Identifiants

  • HAL Id : hal-02312062 , version 1

Citer

Brice Corgnet, Mark Desantis, David Porter. What Makes a Good Trader? : On the Role of Reflection and Intuition on Trader Performance. Journal of Finance (The), 2018, 73 (3), 1113-1137 p. ⟨hal-02312062⟩

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