Learn how Anand Sanghvi combines tape reading, options, and trading psychology in The Lucci Method.
We admit it – the crew here at Sang Lucci is lamentably bro-centric. That’s a problem, because women are often better traders than men. Some of our best students are women, and their numbers are growing in the SL Chatroom. We hope they continue to grow in number, because women bring so much to our trading community.
We’re not just saying this to be politically correct–the science also backs us up. What women lack in sheer numbers on the trading floor, they make up with a range of skills that can give them a big advantage.
So ladies, if you’re already trading, good on ya. You don’t need any justification to trade on with your bad selves. Just keep these tidbits in your back pocket, and make use of them next time someone’s surprised to hear that a delicate flower like yourself is working in a ‘man’s world.’
And gentlemen: pay attention, and see how imitating the fairer sex can actually help your trading. Or, instead of tuning out when your girlfriend nags you about livelihood, pull up a chart and get her involved. Just don’t get jealous when she racks up winning trades way faster than you did – there’s lots of reasons why women just make better traders.
1) Women are better students. Trading at Lucci’s level takes countless hours of study and dedicated research. The same holistic approach to learning that helped many women through elementary school will serve them in their trading careers as well. They’re generally more attentive, more persistent, and more eager to learn than are men. So now that she’s ringing the register trade after trade, maybe the teacher’s pet isn’t so dorky after all.
For proof, look no further than Maribeth Willoughby- the famed student and now top trader at our good friends, Bulls on Wall Street. Maribeth met Kunal Desai with a little account and even littler trading experience, but learned so quickly and well that they’ve now built an entire educational company around her success. Still don’t believe that women can trade aggressively, take hits, and live large? Follow this winning trader on Twitter, and you might change your mind.
2) Women are great at multi-tasking. And they do it better than men. Watch as female traders juggle multiple positions and monitor financials, precious metals, techs, commodities, retailers and penny stocks on multiple time frames – all while your sorry ass is still logging into your platform.
Multitasking is also an essential skill for newbie traders who still work their day jobs. You need to be able to switch into and out of trading mode quickly when you’re still learning. If this doesn’t come naturally to you, these tips might help.
3) Women are more risk averse. You might remember this ball-busting study which found that women make better investors than men, because they are more risk-averse. Men hold bad trades longer, and take bigger losses. Turns out testosterone isn’t always your friend.
4) Women have better role models. Women are still working on that glass ceiling. They have to be smarter, more polished, and certainly better-behaved if they want to succeed. No room for Gordan Geckos or Jordan Bilforts here.
Women CEOs are still too few, but they outperform their male counterparts, without making headlines for bad behavior, all while successfully managing their personal lives, too.
5) Women eat well. And exercise. And maintain a social life. And take better care of themselves. All of those healthy things we preach will make you better traders.
Maybe it’s not fair that women internalize unrealistic beauty standards, which make them more inclined to pick salad over pizza. But then again, maybe it’s not fair that this also gives them a natural edge. Just because women love their LULU pants, doesn’t mean that they can’t short the equity. Healthy body, healthy mind, healthy bank account.
6) Women don’t have big, swinging egos. Of course women are competitive, and of course they have egos. But in our experience, female traders have bigger motivations. Or at least they don’t peg their self worth to their bank accounts.
7) Women talk about their feelings. OK, sometimes stereotypes exist for a reason. Women really do talk more than men, at least about their emotions. And talking about feelings isn’t just an activity best reserved for dissecting The Notebook. It can have a powerful effect on your trading, too. Why do you think Lucci posts his thoughts everyday?
So men, reach out and have conversations about your trading life. If you’re too shy to pick up the phone, confide in your trading journal first. Don’t let your broker be the only one who knows what a bad day you’ve just had.
8) Women are just plain smarter. Women now score higher on IQ tests than men. And according to new studies, they’re getting smarter, at a faster rate than men are, too. And if we’re being honest? Yes, just about anyone can learn to trade. But being smart really helps.
Diagnosing the abilities of an entire sex is bound to be flawed. There are, of course, women who have no business pulling up an order screen. Trading isn’t for everyone. Gender probably has less of an effect on trading performance than other factors like education, family support, and self-esteem. But, given the gender disparities in the numbers, and given all of the wonderful assets women bring to the table, we really encourage more of them to give trading a shot.
Just don’t expect to see Lucci in fishnets anytime soon.
(Image Credit: J. Howard Miller)
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