Why Women Make Better Traders
Women Are Better Traders. Let me explain: First, women are generally more risk averse than their male counterparts, and therefore they really subscribe to the “low risk” approach that is one of the hallmarks of successful trading. This risk aversion also helps with patience in waiting for the right opportunities. A possible drawback to this however, is that sometimes the dislike for risk can cause a female trader to be timid when taking trades. This challenge can be easily worked through by basic skill building, and coaching.
Secondly, women tend to be better planners and thus are more detail orientated. For trading this means mapping out trades that follow a stringent set of rules. And yes, women tend to follow rules better. Ladies work better when given checklists and precise instructions as opposed to men who like to second guess and think they can reinvent the wheel. Or worse, they think they can do it on their own without anyone’s help. A classic example of the differences between the sexes is that when a man gets lost in an unknown location he’ll try and find his way out alone, but when this happens to a female she always stops and asks for directions.
The last attribute that women possess which can help in the trading arena is that they aren’t as ego driven as men. In other words, the need to be right in their trades is not as prevalent in women. They will cut their losses when the trade doesn’t work unlike some men that will hold on until the market proves them right. Some married men would strongly argue this point but we’re only talking about trading here.
Here at Online Trading Academy our top instructors and students happen to be women so we know firsthand the power of the female persuasion, and we’re very proud of that fact.
To be sure, not all females become great traders, and not every woman fits the mold so please do not send me emails regarding how you disagree with the title of the piece. I guess we men can benefit from getting in touch with our feminine side. After all, keeping our egos in check and getting more organized and accepting that we will be wrong sometimes are not bad attributes to possess as a trader , male or female for that matter. No wonder some women are just darn good traders.
I was having this discussion with my wife recenly and asked her if she thought that women made better traders because they lack ego or have more brains. She looked at me and said, “More brains,” and I, as any good husband simply said, “I totally agree.”
Until next time, I hope everyone has a great week.
I hope you realize that in order to be a successful Forex trader, you will never shop around for
Subscribe to our FREE Newsletter and Get FX News & Trade Ideas Delivered to Your Inbox Daily
Written by Gabe Velazquez, Online Trading Academy Instructor
Gabe got his start in the markets as a broker trainee for Paine Webber, a mere 3 months before the market crash of 1987. He witnessed the gut wrenching fear of investors during that time period and the wild speculative euphoria of the late 90′s. That experience brought to light the importance risk management plays in trading and investing. In fact, it’s greatly influenced the way he trades today.
He spent 15 years as a stock and commodities broker, conducting technical analysis seminars through-out Southern California. After many years of managing other people’s money, Gabe now concentrates full time on trading his own portfolio and teaching. Students will benefit from his first hand experience of daily involvement in the market. He brings with him an acute awareness and understanding of how the markets really work. Articulating this knowledge clearly, succinctly, and with enthusiasm is something students can appreciate. This gift for communicating was honed through many years of public speaking.
He currently holds a series 7, 63, 9 and 10 (securities and options principals license.)