Why Women Trade Better Than Men?

Several recent studies suggest that women trade better than men when it comes to the forex market. So what is the evidence and what is the exact reason behind female investors' extensive activity over the male investors? Let's unlock the answer!

28 February, 2020, | AtoZ Markets – In the forex market, most of the traders are men. However, the involvement of women traders in the forex market has been increased recently and they are performing well. A study by Hargreaves Lansdown, the UK's biggest retail investment platform, found that women investors had the edge to return on average 0.81% more than men over a three year period. It also points out that the continuation of this pattern for 30 years would end up with a portfolio worth 25% more than men.

This raises the question about why don't more women invest? Public perceptions of women's investment are less positive than men. In the US, the latest Women and Money Survey by Fidelity Investments found that only 9% of people believe that women are better at investing than men. There are fewer high-profile female investors and fund managers around the notoriously male-dominated industry.

The activity of trading and making investment does not require an extensive amount of physical activity. Therefore, both males and females can trade besides their daily activities. It is easy for women to raise kids and earn money by sitting in front of a laptop. Moreover, in the present world, discrimination between men and women has been decreased. So forex trading became a good source of income for women.

Do Women Really Trade Better Than Men?

If you have gone through the above section, you probably have got some statistics about the effectiveness of women's activity in the financial market. Moreover, HM Revenue & Customs' (HMRC) statistics show that women favour cash over stocks and shares. So, the question arises, are women interested in the forex market?

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A separate study by YouGov found that 55% of UK women said they did not hold an investment, compared to 37% of men. Of them, just 21% of women said they held investment, compared to 35% of men. So, there is a gap between the situation. Women are very effective in forex trading, but they are not interested in this sector compared to men. The possible reason might be that women want a safe and secure place for their money which is not possible by making an investment in the forex market.

As technology increases, the retail traders' involvement in the forex market has been increased. Among the retail traders, there are at least some women. So the consciousness about the beauty of the forex market may encourage women traders to get themselves involved in the forex market. 

Why Are Women Better Traders?

Yes. Women are better traders than men. The trading activity is perfect for women. The forex market is an international market, and people can operate their trading from anywhere in the world. Therefore, the overall process suits women most. Reading across the various researches, here are the reasons why women trade better than men:

#1 Women are Better Students

Trading at Lucci's degree takes limitless hours of study and devoted research. The same holistic approach to gain knowledge of that helped many women via elementary school will serve them of their trading careers as well. They're commonly extra attentive, greater persistent, and greater keen to analyze than are men. So now that she's ringing the registered trade after an alternate, maybe the teacher's pet isn't so dorky after all.

It is very important as it is the first step in the journey of a trader. Most of the retail traders invest money and start trading without understanding the trading strategy. Women will do better in the industry as they can cover this step easily.

#2 Women have Great Multitasking Skills 

Yes. Women have great multitasking skills, and they do it better than men. Female traders juggle multiple positions and monitor forex pairs, precious metals, commodities, and penny stocks on multiple time frames. You may feel sorry to see the complete analysis while you are still logging into your platform.

Multitasking is also a must-have skill for new traders who work their day jobs. You need to be able to switch your trading decisions quickly when you're still learning. There is a difference between trading and investing in the forex market. A trader needs to change trading decisions with the rhythm of the market while an investor sits and waits to reach the price to the target level.

#3 Women are Better at Trade Management

Some studies have shown that male traders are 2.5x more likely to break trading rules than women. Moreover, the same study shows that male traders were more erroneous to take short positions than women traders. More than 58% of women placed short trades correctly, at the time of the study, compared to less than 53% of male traders. 

As we know, trade management is the most vital part of a forex trader. Trading is not just like opening a good trading entry and waiting for the profit or loss. The main difference between successful and unsuccessful traders is that successful traders know well how to manage risks to maximize profit.

#4 Women-Express Their Feelings  

Sometimes stereotypes exist for a reason. Women really do talk more than men about their emotions. Talking about feelings is the best-reserved activity for dissecting The Notebook. It can have a powerful effect on trading activity. By making conversation about the trading activity may help to eliminate the same mistakes over and over again. By doing this, a trader can make him/herself expect in the industry. 

So men should reach out and have conversations about trading life. If you're too shy to take the phone, create your trading journal first. Besides the broker, you should know yourself how many bad trades you have taken today. 

#5 Women Eat and Exercise Well

Yes. Women are better at eating healthy food with a good social life. Moreover, they take better care of themselves. Therefore, all these healthy things we preach will make you better traders. If you are healthy in the food, you are able to make healthy, wise and polite decisions that are most important in the forex trading. Many retail traders do revenge trading when they are making consecutive losses. A healthy diet and exercise may help traders to avoid such mistakes.

Maybe it's not fair that women maintain unrealistic beauty standards, which make them more inclined to eat a salad over pizza. However, maybe it's not fair that this gives them a naturally healthy mind. A healthy body can create a healthy mind, therefore,  a healthy bank account.


We are living in a world where new investment ideas are welcomed by people. If we look at Bitcoin or other cryptocurrencies, we may see that it has already opened a new world for investors. Bitcoin has become the digital version of gold among traders. Why is this happening?

Because people in the present world are more open-minded, therefore, they can welcome new things which were hard several years ago. In this situation, the involvement of women in the forex market will be highly appreciable. A good trading system with good trade management skills may make you sisters, or wives a good trader. Moreover, forex is an international market. So there are no country restrictions for trade. A trader with good knowledge can beat any investors from the world's dominating countries. Overall, women can trade better than men.

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