High Heeled Traders

In every  Trading workshop I go to, I would count how many women are in the class and we would usually make up 10%.  I wondered  why – like it’s hard?! On the other hand, in my playgroup, and favourite cafe  when they see me checking stock quotes on my phone,  many get interested  seeing how it can let me earn an income while doing what moms do (bring kids to school, play at the park)  and want to learn about Trading.  And why not,   Trading is simply Buying and Selling.  And my belief is that women do this a lot.  In our world, this is called Shopping.    I admit the main activity is the BUYING, intended  for keeps – but we do Sell or otherwise get rid  of something that has  less or no more value.    Anyway, considering  women  shop a lot, I thought we would be natural traders!  We just don’t realize it.

In fact, this could be you:

1.       You search high and low, visiting several shops, or shopping centres even  – looking for an item selling below  value for some reason.  Anyway, considering  the whole scheme of things, you want the item and is selling at a steal.  You’re a Bargain Hunter.  In Trading, this is called Value Trading.

2.       You like to buy what is in fashion.   Buying Blue?  That is soooo last year!  You would only go for what is in the new style.  You’re in with the Trend.  In Trading, this is called Trend Following  or one who follows Seasonal concept  in which weather patterns  (a prevailing trend)  dictate what would have a high demand with prices sure to move up (or down).

3.       You buy what is not in season because you  know it would be back  –In Trading this is called Contrarian or  to a certain extent Band Trading (like rubberband – stretch and go back)

4.       You buy when you see a  “window of opportunity” or loophole, or in shopping terms these opportunities  are called “Sales”– in Trading this is called Arbitrage.

So you see, there are many concepts that work in Trading or Shopping  that women do and do well.  In Trading, there is money for everyone.

The other thing that should help understand  this whole Trading exercise is that, it is like shopping for  Shoes.  Yes, Shoes!

1.       We should know what we are after .  “Oh I really need  strappy sandals  for a wedding”.
Same as in Trading, start by having  an Objective.  Say you want  to “consistently achieve 3% of capital per month (total of 36% per year!) . If you don’t know  what you want, where you want to go, YOU CAN’T GET IT RIGHT!

2.       We buy what is a good fit.  Usually,  you wouldn’t buy  a shoe of a smaller size.  Like so in Trading, if a trade does not  feel  right for you but you went ahead being influenced by someone else, this tends to be a loser.   So  Trade only what fits you, your timeframe, trade only the stock/industry you know.

3.       We buy a lot!  Formal shoes, running shoes, many styles of sandals, boots,  according to color, material etc.     You have to have a range of shoe options.  Point is you have got to budget for all this kinds of “shoe  situations”.    You shouldn’t  spend too much on one shoe.   So this important  lesson in Trading is that you have to keep how much you risk  at an amount that does  not blow out your budget and be able to fund next opportunities.

4.       We buy  and wear shoes according to the conditions.   In winter  we would usually wear closed shoes so we don’t get cold, in the summer,  sandals are popular, to keep cool.  So in Trading, you have to have an idea of what the market is doing.  Are people optimistic and buying things in the hope of rising prices (Bull Market), or are people scared and dumping their assets before the prices go down more (Bear Market)?   Or are people not sure where things are going and there is a tug of war between the people who are optimistic against those who are not (Sideways market).    You need to determine Market condition before  deciding on action or strategy, or choose not to trade when market is too choppy.

5.       We buy it when we look and feel good. Easy when deciding for shoes but was  a surprise for me it also applies to  Trading.   No matter how much the trade looks positive from your analysis,  but when you don’t feel good about it (or afraid) that it won’t turn out right, worrying  could make you cut short  a profitable run, this is the worst you can do in profit-taking!    So before opening a trade, you need to feel good about it.  If not, don’t trade it.

I can probably go on and on and on, but the other important thing is,  as there is always another shoe…. as in trading, there is always another opportunity. Be patient and you  will find.

(Thank you to Via Uno Shoes!)


14 April 2011

This article has recently been published in an eBook by Emergen  Australias’ community of Young Leaders.


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5 Comments for this entry

  • Charmel says:

    Glad you liked the site so far, “Women are Natural Traders” is my central theme and pleased to let you know a lot of women feel the same way, and getting more interested to learn while having fun!

  • admin says:

    Posted this article at emergen.com.au International Women’s Day Blogging for a Cause. Comment from Cara Templeman —
    “Wow i really enjoyed reading this. A fun and easy to understand explanation of trading that also justifies womens shopping habits. Charmel you’re a genius!”

  • Thanks-a-mundo for the post.Really thank you! Great.

  • admin says:

    Thank you and I’m glad you found this useful. Let me know other Trading info you’d like so we can enrich the content of this blog! cheers!

  • Lexie Baston says:

    I have to admit that i sometimes get bored to read the whole thing but i think you have a unique blog. Cheers !

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