Written by Katie Gomez

Women breaking into jobs and careers previously seen as boys’ clubs is something we’ve seen in the 21st Century. Women make up more than half of the world’s population and have countless skills and abilities that are rarely utilized due to outdated societal constructs that favor males in careers such as law, medicine, business, and finance. Stock trading is a prime example of a male-dominated industry that women have struggled to infiltrate. However, women have slowly but surely made considerable progress in changing that narrative. 

While many women understand the importance of investing, many of them choose to trust in brokers and delegate their funds to them to handle. That said, some women have recently served as inspiration for women everywhere to start taking control of their financial future and learn how to trade for themselves. In this article, I will review what women bring to the table as stock traders. Finally, I will conclude by introducing a few female traders that stand out, showcasing how their journeys and successes compare to that of their male counterparts. 

Although the Forex Market is predominately made up of male traders, statistics show that there has been a significant rise in women trading on this market, with Fullerton Market studies showing 41.8% of women would consider themselves experienced or well-versed in market trading, just shy of 12% lower than that of male traders.

Women actually gravitate more toward Forex over other styles, such as day trading or swing trading. In a recent study conducted by Broker Notes, researchers found that “women tend to act more risk-averse than men, and these trading types may be classed as higher risk than binary options and investing” (Taylor, 2023).

Do men and women trade differently?

While some think the concept of gender and success in the market might be mutually exclusive, it can play a crucial role in market performance. One of the most significant differences between genders is that women tend to be more risk-averse. While many traders believe this to be a detriment, their more cautious tendencies could make them better traders than many men. In addition, women are better at controlling impulses and thinking long-term regarding their investments. 

For example, in one recent study by Lu, Swan, and Westerholm, female traders were more likely to buy when markets were falling, losing out in the short term but resulting in significant gains in the long term. Conversely, they could hold out and purchase stock when prices were low, resulting in as much as a 43% return on individual stocks and nearly 22% for composite portfolio performance. Since the same principles hold true in Forex trading, female traders often gain positive results.

Additionally, many women tend to possess more of the psychological qualities that make a successful trader. Women have the recipe that helps them make better trading decisions, react to the market more positively (whether winning or losing), and move on quicker. This recipe of a successful trader comprises patience, critical thinking, broadened perspective, and resilience. Ironically, women have been deemed the more irrational and emotional gender, yet their reactions to the market prove they surpass men in emotional regulation. 

Women traders are likelier to follow and stick to their plans because they think long-term. Like following an actual recipe, they follow directions rigidly, unlike men, who prefer to wing it or fluidly follow more impulsive strategies. Women proceed to trade logically, no matter how their trades are doing, because they don’t let their emotions, like fear or greed, influence their decision-making process. This level-headedness allows women to see their mistakes more clearly, review their plans, and direct their energy to decide their next move. 

On the other hand, male traders have a tendency to overtrade or “revenge trade” following a loss or streak of bad luck, showing less control over their emotional response than women. More often, male traders struggle to step back, analyze what went wrong, and learn from their mistakes when their emotions have sent them into a spiral. 

Remarkable Women Traders & Their Relative Strengths

1.) Kathy Lien

As the co-founder of BKForex.com and Managing Director of FX Strategy for BK Asset Management, Lien started her investing career when she was 18 on Wall St. While others celebrated their 21st birthday by going out to the clubs, she was busy launching DailyFX.com to work with G20 currencies. Lien currently writes for high-profile websites such as Investopedia. 

Kathy is also the author of some insightful Forex Trading books, such as The Little Book of Currency Trading, Day Trading, and Swing Trading, the Currency Market: Technical and Fundamental Strategies to Profit from Market Swings, and Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game.

2.) Kiana Danial

Danial is another successful trader, entrepreneur, author, and expert personal investing and wealth management coach. In addition, she is the CEO and Founder of Invest Diva, an internationally recognized firm dedicated to educating women and other minorities on finance. Not only is Danial an example of an accomplished woman in the financial industry, but she also makes it her mission to help other women join her. She won several awards for her accolades, most notably her NY Business Women of Influence Honoree in 2015.

3.) Raghee Horner

Horner is a renowned female trader known for creating the GRab and Wave Premium Indicator. Additionally, she is the acting Managing Director of Futures Trading Horner and content writer for Simpler Trading.

Horner owes her success to a more simplistic and sustainable trading style focusing on technical and fundamental analysis. This trading style allows her to identify objective and systematic strategies to apply to various trades in her portfolio. Horner is a prime example of how women traders tend to take a more straightforward yet more effective approach to their strategies, which usually leads to success. Focusing on consistent effort leads to long-term gains, while more erratic and impulsive trades only lead to immediate gratification. This trading style helped her become an expert in spot currencies, futures, equities, and options throughout her career. (Fullerton Markets, 2021). 

4.) Jennifer Fan

Jennifer wore many hats during her trading career, which started when she was a teenager. After graduating from the Stern School of Business at just 19 years old, she started working for Wall St. By her mid-20s, she had founded Arbalet Capital, managing the hedge fund. In 2012, she was listed in the annual Forbes edition 30 under 30. She is now the CEO of the private wealth and asset management firm called Family Office. 

To wrap up, the market is ever-evolving and women are increasing their participation in it. Learning to trade is more accessible than ever with current technology and resources, and women have the innate skills to succeed. Although it’s not always visible, the overall number of traders—of all genders—is growing exponentially. In this era of social media influencers, we see more successful female traders and their shared wisdom than ever (via Tiktok, Twitter, Instagram, etc.). If you’re looking for more inspirational trading content, check out some of these Instagram favorites:  Hither Mann, The Forex Chick, Rezekifx. and HannahForex.