Vince Stanzione : Why women are better financial traders

When I first started out working for a large bank in foreign exchange (FX) back in 1985 we didn’t have any female dealers, the few women that worked on the dealing floor were in admin and operated telex machines as many FX deals were made and confirmed this way and no men could type fast enough.
Fast-forward 28 years and while the majority of people I teach how to spread bet and trade and those opening spread betting accounts are men, I am pleased to see a good number of new female students achieving excellent results and beating their male counterparts.
The ratio of men to women is still around 85% in favour of men so there’s still some way to go to reach equality but it’s far more common to see female traders and I encourage more women to take up trading.
The big factor leading to more women trading is the internet and the fact that you can trade without having to speak to an arrogant male dealer – and trust me the majority still are which can be very intimidating. The excellent online platforms mean that everything can be done without ever having to pick up the phone.
Women are still in the minority but they have a few tricks to teach the men so for the male readers try to pick up some tips from your female counterparts.
Here are five possible reasons why women generally do far better at financial spread betting and other areas of trading.
Men hate to be wrong
As a trader we have to realise that many of our trades will be wrong and it’s just part of the business but generally men hate to be wrong and are more prone to “blind hope” that a trade turns around.
The correct approach is to follow a trading system or strategy, trade a relatively small part of your trading capital and cash in losses quickly rather than stubbornly sticking with a bad trade.
Remember you can have more losing trades than winning ones and as long as you keep the losing trades small and the winners big - you’re still ahead.
Women traders are better in a crisis and less emotional
Contrary to popular belief I have found female traders to be far more disciplined and less likely to panic than their male counterparts.
Detaching the emotional side of trading from decision making is a very desirable trait to have. From my experience the reason men panic more is normally that they have overextended their accounts and allowed little margin for errors so price movements are exaggerated.
My experience with women traders is that they never risk everything on one trade and normally keep higher cash balances/reserves.
Women can say NO
Sometimes the best trades are the ones you do not make, women are more selective and picky with new trading opportunities where as the men are quick to jump in and make a trade just because they want to be part of the action.
Also women were happy to let winning trades run longer where as men had to fiddle often causing them to take profits too soon.
Women read the manual!
As part of my course I produce a 200-page workbook (Making Money from Financial Spread Trading) and two DVDs, yet many of the men never read it or if they do they just go straight to the trading system pages and ignore the rest.
The DVD has a trading quiz and I deliberately placed the answers in a different section of the workbook which would require you to read the workbook or check the contents page, yet many men email to say that the answers are not in “their” copy.
Not only do women read the manual they are by and large the only ones who also email for help and clarification. Women also keep better trading records and keep trading diaries.
Women do more research – men dive in
Overall women spend more time researching a trade and asking questions and are less likely to trust a news headline or market “guru” tip without doing far more digging before going ahead.
While this can mean that sometimes women enter a little late into a trade overall it is better and more profitable to do so and make a little less and play it safe.
Men tend to like to learn from experience, often sharing trading war stories on chat forums whereas women will try and find out enough up front to be able to sidestep them.
Summary
Regardless if you're trading using financial spread betting, contracts for difference, options, margined FX or just buying and selling via a broker, then if you want to improve your results and you do not possess the requisite X-X chromosomes then maybe instead it's time to think more like a woman.
More from Vince Stanzione on the basics of how to spread bet here.

Vince Stanzione Make Money Trading Markets

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Enterprise and Entrepreneurial Management

Course overview

The BA (Hons) Enterprise and Entrepreneurial Management is one of the UK's leading degree programmes for aspiring entrepreneurs and entrepreneurial managers. 

Designed and delivered by leading academics, alongside world-class entrepreneurs through the 'entrepreneurs in residence' scheme, with Walter Herriot OBE as its Director, this three-year degree programme is designed forentrepreneurial and enterprising students who think outside the box and who want to make things happen. More than just a degree, this programme gives students the right mind-set for dealing with an increasingly uncertain and unpredictable world.

Key benefits:
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<!--[if !supportLists]-->·         <!--[endif]-->Study in Cambridge; one of the UK's leading locations for enterprise and innovation

<!--[if !supportLists]-->·         <!--[endif]-->Benefit from small class sizes and 1-to-1 mentoring

<!--[if !supportLists]-->·         <!--[endif]-->Learn from real-world practitioners

<!--[if !supportLists]-->·         <!--[endif]-->Network with leading entrepreneurs and investors

<!--[if !supportLists]-->·         <!--[endif]-->Gain work experience in local entrepreneurial businesses and boost your employability prospects

<!--[if !supportLists]-->·         <!--[endif]-->Set-up your own business

In addition to this, all students on the course will be allocated an entrepreneur as a mentor for the three years of the programme. This ensures that the students do not only graduate from the Lord Ashcroft International Business School with the skills, abilities and attitude to take control of their own career, they will also have a ready made entrepreneurial network.

 

Business Licenses and Permits: Getting Your Papers in Order

You'll have to deal with a fair amount of paperwork before opening your new business. In addition to registering your business and finding out whether you need a tax ID number, you may need local, state and federal business licenses and permits. This is a basic checklist of items to consider as you set up your business.

If you have a limited liability company, a corporation or a limited partnership you will need to register your business with your state authorities. If you form a sole proprietorship or a general partnership, you generally don’t need to register your business entity with the state.

In most cases a sole proprietorship registration is handled through the county and/or city where your business is based, and there may be state and city permits or licenses required for operation. If sole proprietors opt to incorporate their business or to form an LLC or a limited partnership, then state registration is required. Businesses usually register with their state's department of corporations, division of corporations or the secretary of state.

Federal Employer ID Numbers

Businesses that are incorporated or structured as a partnership, LLC, C Corporation or S Corporation must obtain a federal employer identification number (EIN) that will be used as its taxpayer identification number. Under certain circumstances, a sole proprietorship must also have an EIN, but usually, sole proprietors can use their Social Security number as their business taxpayer identification number.

Register Your Business Name

Business names are registered with state or county authorities. Your business name will be registered with the state when you register an LLC or incorporate your business.

When sole proprietors register their businesses with local or state authorities, their names become their business names by default. Sole proprietors can also apply for a fictitious name -- also known as a DBA, which stands for “doing business as” -- with their city or county clerk's office, which means they are registering their business under something other than their real names.

For example, Jane Doe applies for a business license. Her company will be registered as Jane Doe unless she decides she wants to use another name. If she wants her company to be called Jane Doe Creations, she will have to register for a fictitious name.

Before you register your business name, check to see whether someone is already using the name in your jurisdiction. If you're thinking of creating a Web site for your business, be sure to choose a unique business name so that it isn't confused with another company. Check online to see if a Web domain with the name you want for your business is available.

How did you name your business?

Choosing a name for your small business is one of the most important -- and exciting -- steps you took when you started your business, and everyone has a different process for reaching their perfect business name. How did you come up with the name of your business? 

In inventing the products that we have it was the norm to have a name that others could relate to. Now we square off with each other and write the epics of the experience we encounter.

How I named my business

The name of my business is The Reading 'Room' for Kids, LLC. As the name implies, the purpose was to name a special reading space just for kids where they can come to do their homework and get tutoring without the stigma attached. And, since all homework involves some type of reading exercise, I knew I would be covering that base. Finally, the word "room" in reading 'room' implies a second meaning which is the 'room' to expanse knowledge. I love the name of my business.

The KanDo Organization a/k/a KDO Svcs

Early on I was into alliteration, and so using my first initial rather than a "C" for Kan was created. Since I pride myself on being helpful to attorneys and small businesses as an executive-level virtual legal assistant, adding the "do" for getting things done was easy. Thus KanDo was born. Then I married a man whose initials were D.O., so adding his to mine = KDO Professional Services--his company name. 

Accounting Agency

I named my business "Nad" because my name starts with N... my daughter's name starts with A... my husband's name starts with D. But also in my native language, "nad, nada" means "hope."

Naming Our Business

There are two of us, and we're married, and we're writers, so stringing our names together and tacking Communications on the end, seemed an easy solution to naming a business.

How to Start a Business

Deciding to start a business can be one of the most exhilarating decisions you make in your life. But there are a lot of moving parts and many different elements to consider.

Here are 10 steps that provide an overview of the basic steps required to start a business successfully. Take one step at a time, and you'll be on your way to small business ownership.

Step 1: Get Inspired

All businesses start from a common point - an idea. You may have dreamed of starting your own business for years, or inspiration may have hit you unexpectedly. Regardless of the source, the first step of starting your own business is coming up with a business idea.

Step 2: Do Your Research

You've identified your big idea, now it's time to balance it with a little reality. Are you really ready to start a business? Take this starting a business quiz to gauge your readiness and see what you need to prepare yourself for business ownership.

The next stage of research you conduct in your small business start-up process will help you figure out if your business idea has potential. 

In order for a small business to be successful, it must solve a problem, fulfill a need or offer something the market wants. Some of the questions you should answer in your market research include:

·         Is there a need for your anticipated products/services?

·         Who needs it?

·         Are there other companies offering similar products/services now?

·         What is the competition like?

·         How will your business fit into the market?

Don't forget to ask yourself some questions, too, about starting a business before you take the plunge.

Step 3: Make a Plan

You need a plan in order to make your business idea a reality. If you intend to seek financial support from an investor or financial institution, a formal written business plan is a must.

Even if you don't anticipate seeking financial support, a simple business plan can give you clarity about what you hope to achieve and how you plan to do it.

In general, your business plan should outline your business goals and the motivation behind them, as well as your plan for reaching your goals in terms of marketing and funding.

Step 4: Plan Your Finances

Starting a small business doesn't have to require a lot of money, but it will involve some initial investment. There are a number of ways you can fund your small business, including:

·         Financing

·         Small business loans

·         Small business grants

·         Angel investors

You can also attempt to get your business off the ground by bootstrapping, using as little capital as necessary to start your business.

Step 5: Choose a Business Structure

Your small business can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. The business structure you choose will impact many factors from your business name, to your liability, to how you file your taxes.

You may choose an initial business structure, and then reevaluate and change your structure as your business grows and needs change.

Step 6: Pick and Register Your Business Name

Your business name plays a role in almost every aspect of your business, so you want it to be a good one. Make sure you think through all of the potential implications as you explore your options and choose your business name.

Once you have chosen a name for your business, you will need to check if it's trademarked or currently in use. Then, you will need to register it. A sole proprietor must register their business name with either their state or county clerk. Corporations, LLCs, or limited partnerships typically register their business name when the formation paperwork is filed.

Don't forget to register your domain name once you have selected your business name.

Step 7: Get Licenses and Permits

Paperwork is a part of the process when you start your own business. There are a variety of small business licenses and permits that may apply to your situation, depending on the type of business you are starting and where you are located. You will need to research what licenses and permits apply to your business during the start-up process.

Step 8: Set Up Your Business Location

Setting up your place of business is important for the operation of your business, whether you will have a home office, a shared or private office space, or a retail location.

You will need to think about your location, equipment, and overall setup, and make sure your business location works for the type of business you will be doing.

Step 9: Choose Your Accounting System

Small businesses run most effectively when there are systems in place. One of the most important systems for a small business is an accounting system.

Your accounting system is necessary in order to create and manage your budget, set your rates, conduct business with others, and file your taxes. You can set up your accounting system yourself, or hire an accountant to take away some of the guesswork.

Step 10: Promote Your Small Business

Once your business is up and running, you need to start attracting clients and customers. You'll want to start with the basics by writing a unique selling proposition (USP) and creating a marketing plan.

Then, explore as many small business marketing ideas as possible so you can decide how to promote your business most effectively.

Once you have completed these business start-up activities, you will have all of the most important small business bases covered, and be ready for small business success.

Technology-Related Business Ideas

There are many technology-related business ideas out there that allow tech savvy business owners to use their technical experience to build a successful business.

Here are ten technology-related business ideas, including the pros and cons, and a list of resources for each idea to help you get started.

1. Blog Consulting

If you are a blogging expert and love to learn and explore all things related to blogging, a small business as a blog consultant could be a very lucrative business, allowing you to support all types of bloggers in getting their blogs up and running. Explore if this is the right business idea for you.

2. Computer Repair and Maintenance

If you have a technical background and an expert understanding of computers, a small business as a computer repair and maintenance service could be a great business idea for you.

3. Computer Training

Are you exceptionally savvy with computers and software, and want to help others boost their comfort level with computers? If so, a computer training business might be a great business idea for you.

4. Data Entry

There are a lot of legitimate opportunities available for data entry businesses. If you are an exceptional typist with an eye for detail, explore what it takes to start a data entry business.

5. Desktop Publishing

Desktop publishing involves using a computer and specific software to create visual business documents and marketing materials. Do you have what it takes to start a desktop publishing business?

6. eBay Consulting

An eBay consulting business may be the perfect business idea for an eBay pro who wants to help others use eBay effectively and generate a significant income. Learn if an eBay consulting business is the right business for you.

7. Internet Research

Do you have a knack for quickly finding relevant information on the Internet? If so, an Internet research business may be the perfect business idea for you.

8. Social Media Consulting

If you are a social media specialist and love helping others create a social media presence, then you may be an excellent fit for a social media consulting business. Learn the pros and cons of starting a social media consulting business.