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Making Better (Investment) Decisions by Knowing Your Chronotype
What is a chronotype again?
Chronotype refers to your naturally daily rhythm. These fall into two main types (but can be classed as up to five). The lark who is early to bed and early to rise, and the owl who is late to bed and late to rise.
Ok, I’m a bit owlish — what does that mean for me?
Well, your natural rhythm will be later and that means you will be slower in decision making and sports in the morning and get better throughout the day. There’s also some research I reported on here on research into personality traits associated with these chronotypes. For example, larks tend to be more conscientious, but owls tend to be more creative.
And what about investment decision making?
Well this piece of research, by Guarana et al. from the University of Florida, hot of the presses, specifically investigated investment decisions into start-ups and chronotypes. As we know investing into start-ups is highly risky.
The study asked those registered on investment crowdfunding platforms to make investment decisions at different times of day after measuring their chronotype. These were real businesses on these platforms so the decisions were based on real world data and their performance had been tracked over time.
