Men and women have particular differences when it comes to everything. There have been countless debates on who is better than who.
In trading, new figures show that women trade better than men. Trading is an economic concept that involves the buying and selling of goods and services. A statistical evidence collected by Warwick Business School showed that women traders outperform men by 1.8% while trading less than them.
University of Leicester conducted a research on hormones and found that it affects the way men and women behave in the financial market.
Men tend to get impulsive and overconfident which lead them to have a difficult time learning different trading environments. Men’s testosterone levels are high especially when attempting to take new opportunities. This causes them to trade too much and are left with higher uncontrollable risks. Moreover, losses affect men negatively and provoke an emotional response rather than solving it analytically. Men usually invest in things that they see good for their ego.
There are particular areas where women are psychologically better than men. In preparation before entering the market, female traders first recognize the lacking knowledge they have. They follow a certain process and strategize in advance.
Furthermore, women deal with losses better than men, and search for ways on how to improve without their ego taking over. They have the ability to handle certain situations better and learn from their past trading mistakes.
Women have a more calculated approach in the market and do not let their emotions interfere with how they trade. This allows them to save and invest more money. Lastly, women trade better than men because they work towards a goal with passion and confidence backed up by thorough research and practice.
Also read: Swing Trading, The Most Profitable Technique
