For the longest time, the trading and investment market has been completely dominated by men. Even to this day, many seem to think that trading is mostly for men and that it's something that women should not and do not want to partake in. But what if we told you that there are several female traits that allow women to excel in trading? Would you believe us?
Well, even if you don't believe us, we advise you to check out the following post about how women are starting to outperform men.
Women Handle Risk Differently
It has been said that women are more likely to avoid risky situations than men, but a recent study indicates that this might not be the case. Instead, it seems like women are better at judging risk and comparing the potential outcome.
For example, most women tend to avoid risks that don't provide a big enough reward such as extreme sports, fast cars, and potentially dangerous dares from other peers. However, when the rewards are good enough and the goal is achievable, women take the same risks as men.
In other words, women are more selective of the risks they expose themselves to, and that is a trait that makes them excellent traders. In fact, it seems like women are much better than men at finding good trading opportunities and at the same time are also better at avoiding poor investments.
Women Are Quick to Learn and Find Great Role Models
Another thing that sets many women apart from men is that they tend to be quick learners and they also prefer to study and master a skill before putting it into action. So, while a lot of men sign up for a brokerage account and get started trading right away, women tend to research more platforms and then learn the basics of trading before depositing real money.
Perhaps this is why many of the trading platforms suitable for beginners are seeing better conversion rates.
Not only does this make them better at trading, but it also helps women avoid a lot of the necessary losses that are associated with new traders. It's a win-win for them in other words.
Moreover, women are better judges of character, and when it comes to picking a good role model to look up to and follow, they usually do better than men.
Women Handle Stress Better
Certain studies indicate that women handle stress more efficiently than men and that they are also better at multitasking, two skills that are of the utmost importance when trading.
We all know how stressful trading can be, and anyone that excels at operating under pressure will have a great advantage over most other traders.
Are you still not convinced that women make great traders? Then take a look at these two incredibly successful female traders.
- Adena Friedman
Besides being an incredible businesswoman with a resume that would impress anyone, Adena Friedman is an excellent trader and investor. Not sure who Adena Friedman is? Well, on January 1, 2017, Friedman became the first ever female to be appointed as president and CEO of Nasdaq. In fact, Friedman became the first female to ever head a major, global exchange.
- Abigail Johnson
Since 2014, Abigail Johnson has been the president and CEO of Fidelity Investments and the Chairman of the sister company Fidelity International. And despite rumors of nepotism since she is the granddaughter of Fidelity Investments founder Edward C. Johnson II, Abigail Johnson has proven to be an incredibly skillful trader, investor, and businesswoman on multiple occasions. And if her high-profile position in the trading world isn't enough to convince you, then maybe her $16 billion - mostly investment-related - net worth will do the trick.
