Why Trading Is a Great Career for Women

Trading Is A Great Career For Women

While women are more averse to risk, evidence suggests that their more cautious approach to life could indeed lead to better trading results.

Thus, trading might be the best career for women. According to a recent study, female traders were more prone to buy during a falling market and lose out in the short term. However, they usually experience major gains in the long term. This was because they bought when the stock was low.

The result is that women see returns of as much as 43% on individual stocks and as much as 21.4% on a portfolio with 28 stocks. Men, on the other hand, tend to buy and sell fast. Besides that, they trade in the opposite direction as men, leading to overall losses.

How Men Differ From Women

Deaux and Farris observed in 1977 that men were more likely to inflate their confidence levels when acting in an arena dominated by men. Various trading models show that overconfidence leads to excessive trading to the detriment of traders. There have also been studies that support this theory. In one study conducted in 2001, it was shown that aggressive trading, a preserve of men, usually led to under performance when compared to women.

Thus, trading might be the best career for women. This principle also applies to Forex trading. If more women start to share their positive results in online trading, more women will sign up.

Rising Stars; Female Traders

In the UK, female traders account for just 10% of all the online trading market. Of course, closing this gender gap will take a long time. However, it is still a major milestone from when there were practically no women in the forex trading world. As brokers continue to see a reason to engage female traders, it is likely that they will continue to target this segment of the population more. As a result, it will lead to more growth in the forex world.

Also Read: Audacity Capital Wins Excellence In Professional Trading And Excellence In Trading Innovation Awards For The International Investor Magazine’s 2020 Awards

Besides that, there are signs the industry is taking action on the gender gap. Most major hedge fund companies are seeking to recruit female traders, especially young women for graduate schemes and fellowships. It will ensure that trading for women becomes more common. Another reason why trading for women will continue to increase is that online platforms now allow them to do it with more ease.

When women become financial traders and trade better than men do, these women could be the start of hedge fund managers that become financial traders full time and reel in even more women.

Funded Traders

In the past, women might have had a hard time convincing companies to hire them and trust them with an account. However, women can now get funding for traders with ease after completing a training program. With funding for traders, it will ensure they have the financial security to do it full time and share their stories of success with others. One way of empowering women is giving them financial freedom and online trading is one of the easiest ways to do it.