Females make better traders ?

BSD

Veteren member
3,819 985
I think girls have the one big advantage that they don't let their ego get involved in the individual trade quite as much as most men do.

An Analysis of the Profiles and Motivations of Habitual Commodity Speculators

The focus of this study is the habitual speculator in commodity futures markets.
Responses to a 73 question survey were collected directly from retail commodity brokers with offices in Alabama. Each questionnaire recorded information on an individual commodity client who had traded for an extended period of time.

The typical trader studied is a married, white male, age 52. He is affluent and well educated. He is a self-employed business owner who can recover from financial setbacks. He is a politically right wing conservative involved in the political process. He assumes a good deal of risk in most phases of his life. He is both an aggressive investor and an active gambler. This trader does not consider preservation of his commodity capital to be a very high trading priority. As a result, he rarely uses stop loss orders. He wins more frequently than he loses (over 51% of the time) but is an overall net loser in dollar terms. In spite of recurring trading losses, he has never made any substantial change in his basic trading style. To this trader, whether he won or lost on a particular trade is more important than the size of the win or loss. Thus he consistently cuts his profits short while letting his losses run. He also worries more about missing a move in the market by being on the sidelines than about losing by being on the wrong side of a market move; i.e., being in the action is more important than the financial consequences.

An Analysis of the Profiles and Motivations of Habitual Commodity Speculators


Now we all know the majority of traders are net losers, and the majority it turns out are men.

;-)

A girl by contrast who doesn't have her ego tied up in the individual trade like guys, who doesn't feel a need to be "right" on individual trades to prove something to herself, will focus far more on what is far more important, the long term bottom line which doesn't have to do anything much with winning percentages, net profitability, and let go of the individual trade as the meaningless drop in the bucket it is compared with the ocean of future potential trades.
 

cuotes

Active member
236 29
Thanks Martinghoul & BSD for those interesting links :)

WARNING: the next is a little bit long but I think it offers an interesting explanation to the question of this post.

I remember reading a report, several years ago, which said that women in general were more conservative when it comes to risk money.

Probably who wrote that didn't met to my friend's girlfriend, expending 500euros in a pair of shoes that she really didn't need.

Anyway, as we can read in the doc provided by Martinghoul, men tend to be overconfident.

Let's think just a little bit.
If you have a look at a playground, with kids playing there, you'll observe a curious phenomena.
Boys play noisy games, based in brute force and phisical ability, while girls play sitting down in a circle.

Let's look more carefully.
Boys are totally focused in a goal. They HAVE TO BE the fastest, strongest or more skillful in order to achieve their goals and eventually get social recognition.
Moreover, they don't need to talk too much, they communicate with grumbles and growls, and even striking each other.
They don't need to make long terms plans, just to take very fast short-term decisions.

Let's take a look to those boring girls... they are not playing. No fighting. Nothing seems to happen.

If you believe this, then you don't have the foggiest idea about how the world is.

In their small world, the little girls are fighting a much more subtle battle. They won't strike each other or compete in a phisical way. How they achieve their goals and social recognition?

Communicating. Talking. Chatting. Observing each other and having an overall vision of the situation.

In boy's reign, you will be punished with a kick, punch or whatever. In girl's reign the punishment for not achieving your goals will be other. The group will stop talking to you, and you will be relegated to oblivion. A much more severe penalty.

So... girls need to collect information, evaluate the situation and very carefully make long-term plans.

When all they grow up, everything will be the same. Boys need to collect girlfriends, money and success. Never is enough. They must be confident. If they are not, they should pretend to be. Boys can't show weakness or fear.

Girls are allowed to stop and cry whenever they need. And nobody expects anything outstanding from them.

This has been like this for many centuries. Nowadaysit is different, but you can't wipe out thousands of years in just two decades.


Now... just transfer this social situation into trading.

D'you get the idea?
 

Calinor

Active member
184 20
To say women make better traders is a bit pointless. Trading is just like other specialties. It requires a mix of passion, intelligence, dedication, concentration and a host of other things, just like academic subjects, and a multitude of other skills in life.

It is well known that average woman is better than the average man, at most of these specialties, however the tail is filled by men. In other words, jokes aside, an average woman driver might be better/safer than an average man, but the formula 1 drivers will all be men. An average woman might be a better cook, but the michelin star chefs are nearly all men. At GCSE or A-levels the average girl might be better than the average man at most subjects, but go and look at some universities and you'll see the departments, particularly those that require extreme concentration and intelligence (physics, maths etc) are dominated by males.

So yeah, an average woman probably is better than an average man starting out in trading. But I bet you'll find as with the other specialities, that the top end of traders, the real superstars and market wizards are 90% men.
 

Martinghoul

Senior member
2,690 276
As a man I agree with you, Calinor...

However, if I am being impartial, there's two problems with your argument. Firstly, there is the strong possibility of survivorship bias. Secondly, it could be that what you're seeing is caused by society's unequal incentives rather than some fundamental evolutionary difference between males and females.
 

Calinor

Active member
184 20
It could be Martinghoul. These things are complex and there are many reasons and factors. However, in today's society I don't think a woman is prevented from becoming a world-famous professor of physics or a world famous trader. I mean surely Stephen Hawking had a lot more to struggle with than your average woman does. But he still made it. Part of being that good is a strong desire and commitment to succeed no matter what the difficulties are against you or the costs. This applies in all fields. The universities could be filled with women, and we know year after year girls do better than boys at GCSE and even A-levels (though the gap starts to narrow there), but they just aren't. Maybe when men are happy to single-mindedly spend years devoting themselves to some specialty in their 20s, women might have other incentives and just not want to do that. But that is about commitment to a specialty, and I believe that is required to become a true star at anything. It shouldn't be seen as sexist, because I'm actually saying that on average women are better than men at most things. Just at the top end it is mostly men.

I think there are fundamental differences between men and women in how their minds work, and I don't think this is controversial. But I do take your point. And regardless of society's unequal incentives or the reasons for it, the fact remains that in most specialties, it is men that dominate. In my personal experience (this will sound like a men are from mars thing) I can only concentrate on one thing properly at a time, and if I'm deep in concentration, I can barely even hear when someone talks to me. It just doesn't register. Whereas the women that work with me can handle many things at a time without a problem. But I can concentrate for longer and have a deeper understanding than they do. Ever noticed when you're deep in concentration and someone asks you for something and it is almost irritating? It is irritating for me because I just can't handle two things at once. Of course the last part is just my own experience, but the rest I think is more general.
 
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Martinghoul

Senior member
2,690 276
For sure, I actually happen to agree with you, as my personal experiences have led me to similar conclusions. I was only trying to be skeptical about the statistical inferences that we all implicitly make.
 

Bint_Crusher

Established member
728 33
It does not matter how different mindsets work. Rules are rules and those who trade without rules will lose over time. Who is better at following rules? Disciplined groups like Armies and Navies or bimbranic subtle behavouristic thinking, observing females. I would love to be regarded as a "Turtle" harping back to the Teenage Ninjas, any women care to join me?

I know what my money is on.
 
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arabianights

Legendary member
6,721 1,380
female whats? bananas?
 

tenbobtrader

Guest
450 140
To say women make better traders is a bit pointless. Trading is just like other specialties. It requires a mix of passion, intelligence, dedication, concentration and a host of other things, just like academic subjects, and a multitude of other skills in life.

It is well known that average woman is better than the average man, at most of these specialties, however the tail is filled by men. In other words, jokes aside, an average woman driver might be better/safer than an average man, but the formula 1 drivers will all be men. An average woman might be a better cook, but the michelin star chefs are nearly all men. At GCSE or A-levels the average girl might be better than the average man at most subjects, but go and look at some universities and you'll see the departments, particularly those that require extreme concentration and intelligence (physics, maths etc) are dominated by males.

So yeah, an average woman probably is better than an average man starting out in trading. But I bet you'll find as with the other specialities, that the top end of traders, the real superstars and market wizards are 90% men.



women laugh at mens ego, they are also aware its very important so would think very carefully before ever damaging it


they are aware average is good enough, last 10% is pointless and just ego

........... off shopping :)
 
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dick_dastardly

Established member
843 152
What's all this about the male ego, women have ego's too.

Like the old saying goes........

" When a husband is in the wrong he should always admit it. When his wife is in the wrong he should keep his mouth shut "


dd
 

Bint_Crusher

Established member
728 33
Women have exceptionally fragile egos. They spend half their lives looking in mirrors and looking for approval on their appearance.
 

cuotes

Active member
236 29
Also men has fragile egos.
They don't need a mirror for approval.
They just need those pricey cars, golden watchs and stunning chicks for approval :)
 
 
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