Overconfidence in trading leads to financial losses, self-monitoring boosts performance.
The study looked at how being overly confident in your judgments and paying attention to social cues can affect your performance in a financial market. They found that traders who overestimated their information and didn't consider the uncertainty of asset values tended to do worse. On the other hand, traders who were good at picking up on social cues and adjusting their strategies performed better. Interestingly, these effects were stronger for men than for women.