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Weathers Affect on Mood and Trading Performance

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My wife a psychology major recently gave me a wonderful idea. She asked me if PsyQuation had done much research in the field of weather related mood and its affect on trading performance. The question immediately triggered the recall of some research I had done on the subject a number of years ago, but more importantly I realised we don’t need to rely on anyone else’s research, we can do our own and in my humble opinion I believe our research can be far more accurate than the current academic literature in circulation.

Here is a brief look at the pilot project we are implementing with our PsyQuation software. Each time a user of our software logs into the application the exact geo-location of the user is identified and recorded. Working through a weather api of a global weather bureau database we are able to record the type of cloud cover and temperature of the traders location and build a profile of the traders behaviour around certain weather condition classifications.

One of the leading academic experts in the field of weather and its impact on mood and its consequential affect on financial decision making is Professor William N Goetzmann from Yale University. Dr Goetzmann and 3 other academics recently published an interesting paper in 2013 which seems to have received a fair bit of mainstream interest. The paper is titled: Weather-Induced Mood, Institutional Investors, and Stock Returns.

As far as I am aware there have been no studies done on FX traders and the influence weather has on their mood. Stay tuned as we are excited by what we may be able to learn from our results and the innovative ways we will be able to assist your trading with our research findings.

Looking forward to more profitable trading together.