Tuesday 14 April 2015

Are Women Better Traders Than Men?

...... So are you distracted? 

If you are Male you probably will look at her for about 2-3 seconds then notice that she is looking at charts.... If you are a Male trader you will more likely look back at her for a few more moments..... Still distracted?..... 

Well you can find the full image link here - as our broker licensed her for our landing page (hehe) : 
https://www.atom8.com/lp/english/

The Fintrader study 

Fintrader, like Atom8 offers online retail FX accounts and came out with an interesting study stating that 25% of their clients are women (compared to virtually 0) 10 years ago and one of their analysts claimed that the reason behind their trading success was due to "Women psychology".... 

Think like a women to succeed in trading 
Like all, I am pretty skeptical but as I dig within my own research base... even though we have a handful of female clients, as I scan their performances - they are pretty darn profitable. Perhaps the "Man-Ego" is naturally alerted once such claim arises but it now makes some sort of sense why many traders are teaching their wives strategies & letting them get on with it... (even though their volumes are no-where near as high.... argggghhh!) 

By nature we have balls & with balls we have a natural "Alpha" about us... leaders of the pack... hunters...providers for our families.. This sense of maninism rests on our shoulders & the perceived responsibility is huge! 

I put it down to about 3 reasons why Women are better :

1. Women are probably better at "Crisis-Management" and less emotional - therefore more disciplined and less likely to panic when losing trades occur or are in huge drawdowns; 

2. As we may have experienced.... Women are better at saying "NO" lol - (loling on a blog - yes I do that) -  On the contrary, we all see trades that we know we should not really take... but the reward just looks so tempting... Women however, stick to their manuals & perhaps approach trading with a more measured approach instead of diving in head-first! ; and

3. Mainly because Men have balls. 

Some Statistics 

I remember in University I was looking at something similar and came across a study by Gary Belsky who in said that men traded 45% traded more frequently or "hyperactively" than women and concluded that the explanation for lower net returns (men vs women) was due to male overconfidence - leading to counterproductive trades... 

Why are only 20% of Investment Bank Traders are Women?
What is the one word you associate to Trading?.... "RISK"...

It is simple... Men take more risks than Women... We wouldn't be in an industry of $4 Trillion volume per day if women were sitting behind desks... We would have stagnant market movement in fact...
In a world where cost matters
Brokerages run on commissions & need volume....  Therefore, we have a natural conflict of interest... Albeit, women trade more profitably... but they don't break the rules enough... Are they crooked enough to play the Finance game?
So ladies... if you are already trading - well done! Keep it up & make full use of your time trading profitably whilst the volume is there - take advantage!.... Gentlemen... Pay attention... Learn something from these delicate flowers... Teach your girl/wife the skills & grow with each other... Do this together instead of letting her nagging you about your livelihood from trading... Take a holistic approach & reap the rewards...

I personally think our roles as Men is to protect our women & learn form them... We have a lot to gain...

You be glad to know that Women or Man you can trade your FX with Atom8 :)

Peace & Love
Anish 

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