There is a guy I work with who can be found at his computer, online trading, in between his appointments with real estate clients and his shifts at his other job. So he is working two jobs and making sure that his money has the most value. This is amazing and smart. And almost exclusive to men. Why is that? Financial expert Jean Chatzky says that regardless of how confident we women are in our accomplishments at home, in the workplace, and beyond, when it comes to stock trading, mutual funds, or dealing with investing our money in any way, we don’t trust ourselves to make the right decisions. In her book “Make Money Not Excuses” she stresses that “By not investing, you rob yourself of a huge shot at getting rich.”
And apparently there is no reason for us to not trust ourselves. Women who do trade tend to make more money on investments than men. Here is what we do right…
*Women are less likely than men to hold a losing investment too long.
*Women don’t wait too long to sell winning investments. Men often do.
*Women are more likely than men to diversify.
*Men trade more often than women so their transaction costs bring down their investment returns. Women buy and hold to their advantage.
Guess what else? We make fewer investment mistakes because we tend to learn from and not repeat the ones we do make! So what’s our hold up?!
When I was younger I started to dabble and I’ll be honest, it was just scary. I was not confident with the math, the language, the people at the bank… it was very overwhelming. I ended up cashing out almost as quickly as I opened. Maybe if there had been stock trading services on the internet such as First Trade back then, maybe I would have felt more comfortable being involved with an online broker … feeling more secure and connected with the ability to access my accounts and browse opportunities at my leisure.
The statistics above were provided by two professors at UC-Davis, a top public research university. Are you surprised to find that despite our initial hesitation to invest that we actually are very good at investing our money? Do you invest YOUR money? Why or why not?