Do Women trade stocks better than Men?

The answer is yes! How do I know this? Actually there is some scientific evidence to prove this is what a doctor friend told me. He explained that a human brain be it a man or a women is divided into two hemispheres typically known as a left brain and a right brain. The left brain is the side responsible for logical and rational thinking. The right brain deals with random, intuitive and creative thoughts. Both men and women are same with this regard.

But the difference between men and women is in structure that links the left brain and the right brain. This structure is called the Corpus Collosum. This corpus collosum is bulbous in women and is more tubular- shaped in men. Well if we consider that corpus collosum is the bridge between logical thinking and emotional thinking then the bridge is very narrow for men and the bridge is very wide for women.

Now let us look at this from trading perspective.

I trust that every trade begins in the left brain which is the logical side. We do some analysis and if a stock fits our analysis we take a trade. On placing the trade every trader be it a male or a female will move his cart to the right side of the brain to get a better view of the trade. From the emotional side of our brain we hope that the trade works in our favour. Because the bridge between the logical and emotional is narrow in case of a male who is trading, it is hard to run back to the logical side to continue evaluating the trade on the original criteria.

Instead the male stands on the emotional side hoping that the trade will work out in his favour even if it is falling apart. He might convince him that the trade will come back in profit. He may keep convincing himself that the loss is only 20%. This is called male chauvinism.

How does the bulbous corpus collosum benefit a female trader? Women have the ability to freely travel from the logical side to the emotional side and back. The difference is that if the trade “feels” like it is not working out, women have the ability to run back to the logical side to view the original criteria again and determine if they should remain in the trade or exit.

Women you should actually feel sorry for the men- They can’t help themselves.

Men, don’t worry I have a solution for you. The solution is the stop loss. We all know that a stop loss is designed to take you out of the trade automatically if it goes against you. Men we have to see the single act of placing a trade as both placing a trade button and placing the stop loss. Consider that you have not totally finished the act of entering a trade until you have put an auto exit, knowing you may not make it back to the logical side of the trade once it is placed.

Women wish Good Luck to Men!!!!!