Recent studies have determined that women are better financial investors than men. They tend to make fewer investment mistakes, says Donna Greenwood from http://www.qropshelpcentre.co.uk.
According to the article, “Why Women are Better Investors than Men”, some men tend to make bad decisions, politically, personally and financially. As a result they can tend to self-destruct. The article maintains that there’s some evidence that suggests women are better at most things, including investing.
Investing is the act of committing money or capital with the expectation of making additional income or profit from the investment. Since people can only work so many hours at their jobs or careers to earn money, many people are attempting to put their money to work for them in order to maximize their earning potential. Generally, investing is done by putting money into stocks, bonds, mutual funds, real estate, or many other things. Investing could also include starting one’s own business.
Investors can face risk, especially in bleak economic times. According to the article, “Investing 101- What is Investing?”, the average investor should follow the smart strategy of saving regularly, keeping investment expenses down, and being in the market for the long term..
The article by Ted Schwartz, “Women Make Better Investors than Men, Why?”, claims that women are less inclined to make emotionally driven investment mistakes. Richard L. Peterson, a psychiatrist, studied the role of emotions in making investment decisions. Peterson’s research is based on brain scans of subjects that depicted emotional changes in color-coded images and spikes in fear or greed which were indicated by increases in blood oxygen levels. The increase in blood oxygen levels stemmed from enhanced uncertainty or new information during hypothetical or simulated investment scenarios.
Peterson’s study of thousands of investors concluded that because women are more in touch with their emotions, they’re more able to control the impact that their feelings might have in investing decisions, and thereby avoid mistakes that men may tend to make. Quoting Peterson, “Mistakes happen when there is too much emotion, causing investors to overreact to new information by buying or selling when they shouldn’t. We see this in the brain imaging. But we also see that mistakes occur when there isn’t enough emotion.” His research has been published in leading academic journals.
Regina Lewis’ article, “More Proof that Women Make Better Investors than Men”, claims that women are more risk adverse while men display a desire or willingness to “go for it”, despite the potential risks. Women investors tend to have more self control and lack the investment overconfidence frequently displayed by men. This lack of overconfidence can be advantageous.
In addition, Lewis claims that women age better than men, and mellowing with age has positive investment benefits. Women remain calm in investment situations, possess a higher degree of acceptance, and typically display more satisfaction. These positive characteristics of women investors seem to be accentuated over time.
In conclusion, female investors were more likely than men to have a greater desire for self-control. Women investors tend to trade less and earn more. Men, on the other hand, have a greater need for discipline when it comes to investing. Men tend to be overconfident in investment management.