The conclusions make sense if you consider that while the market is unpredictable, it may not be random, constructed as it is from billions of actions of investors.
If you are considering becoming a DIY investor, it may be worthwhile to consider whether your personality traits will hurt or help you along in that goal—and how hard you're willing to work on your capacity for making good investing decisions. Here are some tips, culled from neuroeconomics research.
Know thyself: How aware are you of your own feelings and the situations that prompt them? If you track your feelings in response to the market's movements, you'll be able to use them as an indicator. "Many of the world's best investors have mastered the art of treating their own feelings as reverse indicators. Excitement becomes a cue that it's time to consider selling, while fear tells them that it may be time to buy," writes Jason Zweig in "Your Money & Your Brain," a recent book about neuroeconomics.
The more you practice being aware of your emotions, the more you are able to regulate them, suggested Kuhnen, who noted research that shows that experienced traders have fewer of the physiological hallmarks of fear in response to unusual events, like sweaty palms and a fast-beating heart.
You can also investigate your own theory of mind or take a test that looks at how well you read people's emotions.