Are Women Naturally Better Traders? // Ep. 34

In This Episode

• Why men have a wider range of performance
• Reminisces of a Stock Operator
• Where Walter goes for trading entertainment

Are Women Better Traders?

Although the title of this episode might sound sexist, that is not our intent. We take an experiential look at what we have seen as to the differences between women and men in trading.

Walter shares his opinion on how psychology plays into it and Hugh shares this experience on the traders he has met in real life.

Read the Transcript:

Hugh: Hi, Walter. What do you think about men versus women in trading? Do you think that generally women are better traders from the beginning or do you think men are? What do you think about that?

Walter: There's this idea in Science. I understand it from Psychology but I'm sure they have it in Biology too. Which is, you are born with this range. You're going to be a height like your genes are basically going to determine pretty much the upper and lower limit. 

So you might be six, three or you might be five, eleven but you're going to be between five eleven and six three or something like that. Depending on your nutrition and things like that. So I guess you know, how much you stretch your spine or whatever. I don't know how you get all around.

Hugh: How much yoga you do.

Walter: Yes. The way I kind of look at this with the women versus men sort of thing…

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Walter: On average and I know we're talking about averages and stereotypes and all that.

Hugh: Sure.

Walter: On average men have a wider range. Here's why I say that because sometimes you'll find a Jesse Livermore — and you guys can look up who he is. You can go read Reminiscences of a Stock Operator. I'll put the link in the show notes for this episode. He was crazy. He took risks to the max. 

Actually you could argue that George Soros is the same way. George Soros is very similar. The upper limit is when you just go hog wild. Now, Jesse Livermore also killed himself. George Soros is to be determined. So you may not want to be you know Jesse Livermore; you may not want to go into that. 

So that's the other thing, is that George Soros and Jesse Livermore they're at the upper edge because they got so wild with risk. Then, you can also have the lower limit down at the bottom where these people, same thing. They get crazy with risk. they're doing revenge trading. 

All this crazy stuff and they end up blowing out. Whereas, I think women have a tighter range. So I think women typically don't let ego step in and kind of dictate what their position size is for any given trade. They are typically a little bit more measured. I actually think that women in general should be running the world. 

I actually think we would have fewer wars. There'd probably be more wisdom in terms of you know what I mean? I just think the countries would get along; that's another story. So I think that they have a tighter range. They are probably more likely to make money overall. But also, they may not have the extreme highs and lows that you get when you get these wild cowboy guys you know stepping in the markets.

Which is like you know they're there, man. You can see them and you can see them today. You can go on Twitter. I had no idea that Twitter was such a spot for traders but it is especially the stock traders. It's crazy. I've only really realized that in the last six months. It's entertaining. It's actually entertaining to see these guys try and blow themselves up. It's crazy.

Hugh: There's actually some good opinions there too.

Walter: Yeah, absolutely. What do you think?

Hugh: For me, at least the most consistent traders I've ever seen and I would argue even the most successful have been women. The ones I've met actually and that's a very small population size; obviously but I do know of a couple women who can make a living basically with a five or ten grand account. 

They'll double that up every one or two months and then they make a living off of that. They don't want to trade anymore but I'm on a pure percentage return that's fantastic. I think they do have a little bit more of a calm head. 

They generally look at things more objectively and they don't go, they don't put that testosterone I guess in it. Try to like go balls to the wall or whatever. There are fewer women trading but I think when they do decide to trade, they end up usually being pretty good.

Walter: Absolutely.

Hugh: Okay, cool. Thanks, Walter.

Walter: Thanks.

Hugh: All the information in this podcast is for educational and informational purposes only and is not trading or investment advice.

SHOW NOTES:

Reminiscences of a Stock Operator by Jesse Livermore

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