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The Female Effect: Why Women Make Better Traders Than Men

Why Women Make Better Traders Than Men? Is it their prudent appetite to risk? Their humble lack of ego? Or their ability to multitask? In any case, the female effect is real. Here’s why women typically make better traders than men:

Gender bias – the boys club

Let us ask you this – what’s the first thing you think of if we said Wall St, stockbroking, trading, or investment banking? We bet the first thought that comes into your head is a group of alpha males. Cisgender men wearing nice suits trying to dominate the financial markets; the boys club. The fact of the matter is, this is largely true and it is a gender bias that has existed in the industry since the dawn of time.

As host Andrew Baxter claims, when working on his first trading floor in the city of London, out of 100 floor traders merely only 4 of them were women. Quite frankly, Andrew believes in his experience after 20 years of educating thousands of people is that women typically make better traders than men. There’s a massive disconnect as to where the industry sits in terms of gender bias.

The female effect unpacked

Taking an overarching generalisation here, there are a few reasons known as the ‘female effect’ which make women better traders than men. The first is their lack of overdeveloped ego – which is, unfortunately, something most men struggle to control. We don’t mean lacking the confidence to take a swing or pull the trigger. However, women typically have less of a tendency to peacock or beat their chest when it comes to their trading – leaving them with more consistent results.

Secondly, women typically manage risk much more prudently than men. Genetically, women are wired from the caveman days to manage the budget and nurture the family. The same way they typically nurture their nest egg of a trading account. In his two decades of education, Andrew Baxter has seen so many of his female clients have a ‘6th sense’ when it comes to that gut feeling of managing risk which has led to them to greater results.

Lastly, men can’t multitask – women can. As ridiculously obvious as that might sound given most men have heard that before (when they’ve listened). It’s true, and it really does make a difference to your trading. Most women always have this innate ability to maintain their attention span and balance activities better – leading to better results in markets.

A mode of independence – a driving factor

Historically, in most households throughout the world over time, the male has been the breadwinner and the female has kept the house and the family. The notion of a women having to ‘ask’ for money when she needs it to go and buy something can be awfully disempowering and rob many women of their independence. Enter – trading and investing.

Here is a medium that has no gender bias and the capacity for someone at home to generate their own income and profit, all the while allowing a woman to gain back independence. Not only does this motivation lead to more money and financial freedom, but it also leads to a more equal and healthy relationship which is just as important. This level of motivation and ambition is another reason why women typically make better traders than men.

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Host Andrew Baxter happily shares the story from many moons ago where he met a lady at an event who openly admitted she had an urgent need for more cash flow. As the protector of her family, when we say urgent in this instance – we sure as hell mean urgent. After starting with a mere $30,000 this trader managed to turn a profit of nearly $150,000 within 4 months of trading. As someone who had never traded in her life before.

This particular client of Andrews whom he worked very closely with learnt to trade the commodities market and make a hell of a lot of money over a very short period. After executing the plan to the letter, this took away the immediacy of this trader’s problem which is a great example of a female MEGA TRADER that we have seen throughout our time in education. Who knows – maybe you’re the next mega trader, to find out if you are, reach out to Andrews team at Australian Investment Education.

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