Hirschhorn: Are Women Better Investors?

Video: Market coach Doug Hirschhorn, PhD, discusses the differences between the sexes when it comes to investing.

Traditionally, men dominate the financial services industry. But given the past year's events, many people find themselves wondering if that’s a good (or bad) thing.

In fact, there are five reasons why your wife or girlfriend may be a better investor than you:

  1. Awareness Women are generally more comfortable going through the process of gaining self-awareness than men. And self-awareness is critical to successful trading.
  2. Ego Typically, women get far less wrapped up in the “I/Me” involved in the decision-making process. Remember, trading is about making money, not being right.
  3. Strategy Men react, while women tend to reflect. It’s reacting that leads to impulsive trading and sloppy mistakes. Reflection, on the other hand, leads to game plans and process.
  4. Growth Women are often more comfortable going outside themselves to find information. They have a growth mindset and are more open to learning from their mistakes.
  5. Stability Let’s face it, men are driven by greed, while women are more likely to be driven by comfort and stability.

It really is enough to make you wonder: If more women were running the show on Wall Street, would we be in a better economic environment today?

Think better, invest smarter.


Doug Hirschhorn is the chief executive officer of Edge Consulting, a firm specializing in “Peak Performance Coaching.” He holds a Ph.D. in Psychology with a specialization in sport psychology, and has offices in New York and South Florida. His client list includes elite athletes as well as many of the largest banks, hedge funds and financial institutions in the world. Doug is presently at work on his new book, 8 Ways to Great (Putnam, 2010).

Have a question for Doug? You can reach him through his Web site, DrDoug.com

Disclaimer: Doug Hirschhorn's expertise is in the psychology of achieving peak performance. He is not a financial advisor and does not make trading or investment recommendations or provide trading or investment advice. He is an expert on the mental game. Although Doug Hirschhorn has a Ph.D. in Psychology with a specialization in sport psychology, he is not a licensed psychologist and does not provide therapeutic, clinical or counseling services.