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Financial trading performance as an IQ test
This paper found that involvment in stock markets is positively related to IQ:
http://faculty.chicagobooth.edu/juhani.linnainmaa/IQandParticipation_JF2011.pdf

Another paper found that the better traders were smarter:

http://faculty.chicagobooth.edu/juhani.linnainmaa/Grinblatt-Keloharju-Linnainmaa_JFE2012_advance.pdf

Incidentally this also dispels hard theories of market efficiency, which would predict that a trader with a strategy cannot outperform randomized trading (due to unpredictability of markets).

Yes, markets are largely impredictable but there are some tiny imperfections that people with high IQ can capitalize on. Incidentally this would make me a genius, because I am heavily invested in futures trading and I have been profiting from it.
Are the rank orderings of traders from year to year well correlated?

Anyways, please make money and fund HBD research. You might even get better research ideas working with other things. If you come up with something, pitch it here and it is likely to happen.
Are the rank orderings of traders from year to year well correlated?

Anyways, please make money and fund HBD research. You might even get better research ideas working with other things. If you come up with something, pitch it here and it is likely to happen.


That'd be a noble cause. However at present I am unemployed and I need to spend my profits to live.
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