The Rise of Female Traders: 3 Things you could learn from the fairer Sex

When you think of successful traders you often think of testosterone driven men wearing suits frantically shouting at one another across a crowded trading floor. But increasingly more and more women are becoming successful traders, some have attributed this increase to the decline of sexism in the workplace etc. while others have focused on the traits which seem to make some women particularly successful traders. What is most striking is not the increase in the number of women succeeding in the big financial centers of the world such as Wall Street and the City of London but the increase of the number of women making it on their own day trading. Attend any day trading seminar or event and you will see a new breed of women who are eager and determined to make serious money from the financial markets. Today I want to outline five features I often see in women traders than can often translate into trading success. 

1. Emotional Detachment 
Women are more able to emotionally detach themselves from their trading performance than their male counterparts. The number of times I have seen male traders behave like failed trades are some affront on them as a person is almost comical. If a trade goes against you it doesn’t reflect on you as a person and it probably doesn’t even reflect on you as a trader (if trades often go against you, it probably does). Most women realize this and therefore do not get as caught up when a significant trade goes against them. On the other hand many men react to such a loss by increasing the scale or the size of the trades in order to make up for such losses.

2. Risk Aversion 
While no trader can be completely risk adverse, a degree of risk aversion is essential for any trader hoping to have a long and profitable career. Many studies have shown that on average women are more risk adverse than men, which leads to women taking on less risk. This I believe is something that can help women be better traders than men (as long as they are not overly risk adverse), some men come up with what they think is a great trading idea and jump head into a trade. While many women give such a ideas more thought and consideration before plunging in and may take up a smaller position while they wait for their hypothesis to be proven. Many male traders could benefit from becoming slightly more risk adverse than they currently are.

3. Networking 
Women are often better at networking and build long standing relationships with other than men. While this is not an obvious advantage, I would contend that women’s superior skills in this  area can be very advantageous. Financial trading is a fast paced world with new trends and developments occurring every day, one of the best ways of learning about such developments is by talking and staying in contact with an extended group of peers who can help give you useful insights and tips. Good networking skills can give you a one up on traders who do not have such a good network of well informed peers. 


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