I found an interesting article.
The original article was an interview with Warren Buffett in 2017, and “The Trap of Intelligence” is an article from 2019. It seems that Warren Buffett, the god of investment, left behind a famous quote saying that there is a very low correlation between IQ and investment behavior.
“Investing is not a game where a person with an IQ of 160 beats a person with an IQ of 130. Rationality is essential.”
Warren Buffett
That may be true for “discretionary trading”.
The article cites MENSA horoscopes, and I think some people at the MENSA level do believe in horoscopes. But there are statistics showing that less than half do…
The article also states that “Being rational means basing your thoughts and decisions on data, not emotion or intuition,” but the basis for this is that people with high IQs cannot do that.
The article also states that “smart people are used to being right, and therein lies the danger,” but smart people are smart because they always have doubts that they are wrong, and stupider people are more likely to believe they are right without reflecting on themselves.
The smartest man in the world is smart because he learns from people dumber than himself, and the dumbest man in the world remains a fool because he doesn’t learn from people smarter than himself.
Maybe it was a mistake to pick a sample at the MENSA level.
At the very least, people who make decisions based on emotion are not suited to “system trading.” I think people who can perform data-based analysis will be able to come up with logic that will lead to success in “system trading.”
I think IQ, which measures “logical thinking and reasoning,” is closely related to investment behavior.
