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  • Inside the brain of a trader: A biomarker for irrational exuberance

    07/07/2014 3:02:27 PM PDT · by WhiskeyX
    CNBC ^ | Monday, July 7, 2014 | Meg Tirrell
    Certain areas of the brain associated with reward and response to gut feelings have shown links to trading behavior and success, according to research published Monday in the journal Proceedings of the National Academy of Sciences. The study shows that activity in one area of the brain actually tracks price bubbles—and that higher earners get signals from a different area that are associated with selling before a price bubble peaks.