By Sana Ameena, Student of Commerce
We are in the 21st century and women have come a really long way in terms of empowerment and leaving their signs in the world. Though it’s the 21st century still there are women outside with low confidence and believe they have less knowledge about finance than men when it comes to investing. Why is it so when most of the researches have proved that women are found to trade better and have better long term results than men? Of course men are also brilliant investors, however the majority of men were found to reduce their net returns by about 1% according to the 2001 study by Barber and Terrance.
A study in December 2009 by Vangard: During the 2008 and 2009 Financial Crisis men were more likely to trade and at the wrong time. “John Ameriks, one of the researchers in this study, told the New York Times in March 2010 that male investors tend to be overconfident and academic research suggests that men may think they know what they’re doing, even when they really don’t know what they’re doing”. Men hold on their losses longer than women and think stocks would rise back even when they keep on sinking.
Naturally men and women differ biologically and socially hence their psychology towards investment decisions also differ. Women most of the time follow the theory of “buy and hold” that is investing for long term they take less risk because of they worry about more losses, usually women trade less and earn more. Men do not ask for directions and women do, they make their decisions after hearing other people’s experiences and carefully place their investments. The various studies have proved women tend to make better investments. “Stock picking with men is too often about one-upmanship and bragging”, says LouAnn Lofton, author of Warren Buffet Invests Like a Girl: And Why You Should, Too.
The myth here is “It is always going to be a loss anyway”. The fact is with a little bit of caution and effort, just give it a shot and come out of your fears this will show what excellent investors women are. Do not bind yourself just fly as far as your mind lets you fly what you believe in, remember you can achieve. It’s time to take charge of your financial futures. Take time, study and gather as much information as you can be patient make little efforts, stock market is a huge field where you can sow your investments if it does not rain today it will definitely rain tomorrow and you can harvest a good investment at right time.
Photo credit: thinkpanama / Foter / CC BY-NC