Article What Traders Can Learn From Women

T2W Bot

Staff member
1,467 68
One fascinating realization I have come across during my years as a private trading coach and instructor is how different female and male traders can approach, analyze and trade the markets. Without offering outrageous generalizations, it has been my experience that women possess a particularly logical mindset that can give them a substantial advantage in market speculating. Simply, the trading method I developed and use quantifies the supply/demand and human behavior relationship that ultimately determines price in any market. It is based on a very objective and mechanical set of criteria. In other words, the goal is to learn the method and then simply follow the rules. The female mind has a much easier time doing this than the male mind. Here is an example of how this works.
I recommended a trading idea to buy AMD at a certain price based on anticipatory analysis. One of my female students took the trade and did well with it, while a male client saw the trade but did not enter...
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0007

Senior member
2,367 653
I can't take any article that claims women have a logical mindset seriously.
Have to disagree. You may be right in the case of Essex-girl (and I don't know what proportion of women come into that category), but the ladies can be very logical (doctors, scientists, lawyers, academics, aviators) and one big advantage they have over us blokes is that they find it easier to admit when they are wrong.
 

mikeeg

Member
97 13
"It is clear to me that females in general don't worry all that much about things that are not in their control"...

Most women I know worry about everything that's out of their control !
 

BSD

Veteren member
3,819 985
I'd say quite often women are wiser than men, as women are more often right-brainers than not.

Right-brainers are more results oriented than more process oriented left-brainers.

Applied to trading women are in this to make money, while many men prefer proving themselves and their clever analysis right.

Most market participants are losers, and most participants are men.

Read through many boards and it's not hard to see that most men are chasing after a holy grail, after a system that is 99% right.

Correlation, anyone.

;)
 
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Adamus

Experienced member
1,898 97
Most market participants are losers, and most participants are men.
so the sample is probably too small (of women and of winners)

I don't know any women speculators.

Was there more than one in Market Wizards?
 

arabianights

Legendary member
6,725 1,377
I'm also skeptical about the claim most market participants are losers. That is certainly very unlikely to be the case if one takes the winners' clip size into account and remove hedgers from the equation.
 
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BSD

Veteren member
3,819 985
Well there are some studies.

But just look around boards, hehe.

"An analysis of the profiles and motivations of habitual commodity speculators


W. Bruce Canoles 1, Sarahelen Thompson 2, Scott Irwin 2, Virginia Grace France 3 *
1Merrill Lynch, Meridian, Mississippi
2Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign, IL 61820
3Department of Finance, College of Commerce and Business Administration, University of Illinois at Urbana-Champaign, 340 Commerce West Building, MC-706, 1206 South Sixth Street, Champaign, IL 61820-6271
*Correspondence to Virginia Grace France, Department of Finance, College of Commerce and Business Administration, University of Illinois at Urbana-Champaign, 340 Commerce West Building, MC-706, 1206 South Sixth Street, Champaign, IL 61820-6271


ABSTRACT

The focus of this study is the habitual speculator in commodity futures markets.

The speculator's activity broadens a market, creates essential liquidity, and performs an irreplaceable pricing function. Working knowledge of the profiles and motivations of habitual speculators is essential to both market theorists and policy makers.

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; that is, being in the action is more important than the financial consequences.

Participating brokers confirmed that for the majority of the speculators studied, the primary motivation for continuous trading is the recreational utility derived largely from having a market position.

© 1998 John Wiley & Sons, Inc. Jrl Fut Mark 18:765-801, 1998"


LINK:
Wiley InterScience :: Session Cookies

This the part that is SOOO typical of board losers posing as successful wannabes waffling on about hit rates:

"He wins more frequently than he loses (over 51% of the time) but is an overall net loser in dollar terms.

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."



:LOL::LOL::LOL:
 
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