It’s no secret that technology is the great enabler; it’s ability to empower us is now more prevalent than ever thanks to the internet and all its affiliated technologies. From online banking to blockchain technology to drop-shipping, the information superhighway is awash with opportunities and possibilities.
One such industry that has really taken off in no small part thanks to the internet is day trading, also known as online trading, and more so ever among women of all creeds. What used to be deemed as a boys’ club has become an all-inclusive club where anyone willing to put in the time could stand to profit.
Of course, like all financial traders endeavours, it’s easier said than done, but with all the tools and resources available online, many women have started to migrate towards this potentially lucrative vocation. In fact, in Japan 25% of day traders are made up of women while in Australia that number sits at 10%. But why has it all become so popular lately, especially amongst women?
A surge in popularity
One of the main most responsible factors in the proliferation of day trading amongst women is the flexibility. Day trading runs 5 days a week, 24 hours, allowing for anyone from anywhere in the world to set their own hours. Whether you’ve had to start working from home or you’d like to pursue a new business, or you’re a housewife, the type of flexibility offered by day trading means that it’s something that can easily be slotted in somewhere.
Then of course there’s the big role that technology plays, primarily in terms of the devices that Traders can use to pursue a trading career. PC’s tablets and smartphones can all accommodate the trading software, thus fostering in a climate of ease and convenience.
In addition to the benefits of technology, research has also shown that women tend to be less stubborn, more strategy-focused, and less prone to risk taking – all qualities that are vital to success in this game.
A good balancing act
The world of day trading is a fast-paced one comprising an array of markets that one can speculate on. Outside of currency pairing, there are stocks for major companies and commodities like gold, silver and sugar. For anyone who wants to get more knowledge on spread betting, the internet is littered with knowledge on the subject. With so much at your disposal, excitement can quickly mount and it is for this and a myriad of other reasons that traders must learn to properly manage risk. Traders Studies have indicated that men are prone to being overconfident, a trait that while not detrimental, is not ideal for day trading as it can aid in the escalation of losses.
Women Traders on the other hand, based on a number of studies, make for more cautious investors to the point that they might be too risk averse. One of the main objections is thus to find the ideal middle-ground.
Sticking to a strategy
As clichéd as it might sound, one of the pillars of success in the day trading game is for one to stick to a strategy. Once again, we’re going to rely on the results of research and in this case, it indicates that women are much more prone to adhere to a proven strategy and for a number of reasons. For one thing, women are less stubborn, which means that the likelihood of exiting a trade that might go sour is stronger. In addition to this, women involve themselves in fewer trades, thus electing not to spread themselves too thin and thus refraining from a sensory overload.