Why Women Are Better Investors?
Hello everyone. Do you know that in accordance to Fidelity's 2021 Women and Investing Study, women’s investment returns outperformed men’s, based on their 5.2 million customer accounts from January 2011 to December 2020. In addition, a survey by ET Money from March, 2021 shows that women investors have generated better returns than men every year from 2017 to 2020.
Thus, faster look around for your female friends who are investors, and they may already generate a huge profit return from their portfolio!
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Let us see why women tend to outperform men in stock market.
Women trade less frequent. Women trade 45% less often than men, and interestingly, this is enough for women’s returns to outperform men. Lesser trading frequency means women is less likely to overtrade. When we overtrade, it will be very difficult to monitor all the positions, and we could be mentally fatigue and make many mistakes. When the trade is less frequent, it also means that women holds the stocks for longer term. Women are also apt to stay calmer than men in down markets.
The statistic also shows that time in the market (stay invested) is more important than timing the market (aim to buy low sell high). If we miss any top day, our return will be affected a lot.
Let us see why men tend to overtrade:
Many men are over-confident. Men tend to read many financial “news” and “hype”, then get sucked in all the hype and emotions of the moment. Men also tend to “show off” their portfolio and return. Thus, traders who are overtrade can go through severe frustration, anger and panic the moment the trader experienced losses and bad calls in the trades. Consequently, they will make more revenge trades to cope the previous loss, which causes even more losses. In addition, overtrade also means we need to pay extra commissions on the investment and results in a poorer investment performance.
How about women?
Interestingly, as women are generally less confident in investing, they tend to spend more time researching their investment choices. This prevents women from chasing ‘hot’ tips and overtrade.
However, the fact is, many women still need to take care the family, housework, take care children or babies and need to do many other stuffs after working hours! They simply do not have enough time to look for news or even log into their trading accounts.
What we can learn from women:
Guys, time to help your mother or wife to do some housework, take care children or babies, or any other tasks to reduce their burden, so your time is occupied to minimize the risk of over-trading!
There are many famous and successful female investors as well. Cathie wood is one of them.
Who is your favourite female investor or trader? Comment below to let us know!
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Jay-Jay : 女性是更好的投資者,因為她們可以更容易地消除投資中的情緒。
Casperwolf : 這對我來説是完全有道理的。我能在男人身上看到,在我自己身上也能看到。沉迷於媒體炒作、熱門信息等等,我認為這很能説明問題,雖然女性的交易量比男性少得多,但她們的表現仍然好於男性。這篇文章很有趣,一點也不令人驚訝。
101644863 : 我完全同意我妻子是比我更好的投資者
JM investor 樓主 101644863 : 我也是,哈哈
JM investor 樓主 Casperwolf : 我完全同意你的看法,我過去經常受到新聞和炒作的影響,直到我找到了自己的投資方式,無視新聞
JM investor 樓主 Jay-Jay : 是的,絕對同意你的看法!