‘We need more female traders’, the government’s commission on banking standards concluded in its recent report. It’s now well-documented that male-dominated trading floors led to excessive short-term risk-taking which spun out of control and crashed. In fact the few women traders who did operate pre-crash had better results over sensible time-frames.
So where will all the new female traders government is calling for come from? Well it looks like women have got the message that this is something they could be good at. There has been a huge rise in independent female traders, according to new research from financial experts City Index. Between 2001 and 2011 the number of female traders registered on their platform increased 14-fold.
City Index produced a handy infographic showing who those women are. The average age is 41, with the youngest aged 19 and the oldest 94. And while most are Directors already well engaged in the business world, there is also a surprising number of teachers, secretaries and housewives. In fact one of the top traders is a teacher who earns £160,000 from trading on top of a £32,000 salary. Nice work. But as they say in the footnote ‘remember spread betting and CFD trading can result in losses that exceed your initial deposit.’
If you are planning to trade, hold on to those female characteristics, they’re a real asset according to the experts. Here’s a reminder of why women are often more savvy about investing than men.
- We can admit ignorance. Women aren’t afraid to say when they are not sure.
- We find the help we need. If women don’t feel they know enough about something, we will find someone who does. Women are also much more likely to take up training to fill their gaps in knowledge. City Index training workshops now have 30% female delegates, compared to 100% men in 2001.
- We are more risk aware. As a result women are less likely to fall for scams and to make sure we don’t lose more than we can afford to lose.
- We do homework. Female independent traders are more likely to invest in companies they know a lot about. They investigate their investments thoroughly.
- We set goals. For men trading is often a competitive pursuit. For women it’s more likely to be a route to help them achieve goals in their life.