Dale Gillham:
Our company has experienced a marked increase in the level of female investors in the past five years and proportionally they are the more successful investor.
Women are as ambitious as men, but come from a more conservative place than men, as they tend to be more concerned with family and home. They are slower in the application on investing and trading of the markets which is a distinct advantage as it allows them more time to develop their skills and gain experience. As they develop they take on more, whereas men often invest or trade in things where they have yet to develop the knowledge, skills and experience.
With the ability to trade and share market from home or anywhere in the world, more women have entered the market in greater numbers. Some are doing it to supplement their income, whilst others want to spend more time with their families rather than at work. While he said conventional roles were obviously changing some traditional elements saw women and men differ when it comes to their approach in the market. These key differences in their strategy are why women are more successful in the market place.
In essence men are the risk takers. The fact that they have been targeted as the bread winners of the family in the past has meant that men feel the need to plan for the future more so than women. While women are now entering the investment circuit for the seemingly untraditional family place, their conventional family ties of being at home means they take more caution with their money.
When thinking about investing, there are three key factors to be taken into consideration.
The first is to identify what you are trying to achieve; secondly is the risk factor taking into account your ability to be comfortable with the outcome and thirdly, whether you are knowledgeable and posses the skills to manage the risks. It is these key elements that men and women tend to approach differently.
Men tend to focus more on what they can make where women tend to think about what they can lose.
A women’s general need for safety “to keep things simple,” is another reason why women tend to excel in the market, he believes.
The risks they take are lower. In saying all that about one in ten men invests like a woman and one in ten women invest like the men.
Inarguably, more women have entered the process of investing and share trading in the recent years.
And the strengths that women display in their approach to the share market that men lack are due to their newness to the environment. A woman generally will be open to learning and asking questions, as they like to understand something before moving on. Their natural tendency to avoid risk (thinking of home and family) allows them to more accurately assess risk and plan for it.
And while this caution can lead to women’s success, it can also lead to women stifling their strengths in the market. The negative side of this is that they hold themselves back by putting unfounded barriers in front of themselves. And while men are more eager to take risks, he adds they tend to be more decisive, and will be interested in investigating new products, investments and technology.
So therefore the chances that men take can lead them to explore new avenues and ways to find success.
In addition to the approach to trading and investing, the aftermath is also different for the sexes he said.
This influences yet again their future successes and perhaps is one of the leading factors in why women are more successful in the market. Women keep doing what works and do not have the desire to change. Men, once they get success, will often experience failure as they change what is working. Given this men will experience more false starts to their trading career than women.
For more information on Dale Gillham or Wealth Within visit www.wealthwithin.com.au.
