Beware the Trader Housewife

If I had a dollar for every time I've heard the following excuse over the years, I would be a very wealthy lady: "Oh, I couldn't possibly trade; I'm just a housewife." Initially, my blood would boil, and I would feel outrage start to bubble up within. Then, gradually, I would look down on these poor, misinformed, downtrodden women and feel the need to boost their self-esteem.
But, as the years continue to creep by, I have started to look more deeply into this entrenched belief of theirs. As a trader and a woman, I have tried to understand why being a housewife, or, for that matter, a woman, would be seen as a "disadvantage" to becoming a successful trader.
It is true that, even in the year 2010, the vast majority of this industry is male. This includes the plethora of testosterone-filled dealing rooms of stock broker houses, the business development managers and consultants of the big banks dealing in the equity markets and the institutional and debt capital markets worldwide.
Over time, I've had the privilege of operating in each of these venues. While the composition is mostly male, there is a growing influx of females. Do these females see themselves as being less than their male counterparts? Do the clients of these strong and confident women question their ability, feeling cheated by having to deal with the supposed "fairer sex"? Not only is the answer to these two questions a resounding "no", I have actually seen these women in such demand that the industry is desperate for more women to join their ranks.
One example of female genius in the stock markets is Margery Teller. As a floor trader in the Euro Dollar pit of the Chicago Mercantile Exchange, Margery accounted for an estimated 10 percent of all Euro dollar trades in 2002. The exchange was so impressed with Margery's prowess, they offered financial incentives to the other traders to take up the slack.
When asked why she chose floor trading as a career, Margery replied, "I'm just an idiot savant...It's the only thing I can do." It is rumored that her colleagues had so much faith in her abilities, fellow floor traders refused to take the floor if Margery was not present.
So, let me ask, "Is there a physical or psychological reason why females can't trade successfully in the markets?" While there have been countless studies on this subject, let me draw on a recent study by Cambridge academic, John Coates, a Wall Street trader turned neuroscientist.
Following the sub-prime fiasco, John Coates completed a study of a select group of traders. What he found was startling. After taking saliva swabs from a selection of male and female traders, he repeatedly tested their testosterone levels with each winning and losing trade. At some point, the testosterone levels of the males reached a level where they became over-confident and took unnecessary risks with their trades.
On the other hand, he found that women have only 10 percent of the testosterone men have and has drawn the conclusion that, if more females were included on trading floors, there would be more stability and less risky trading behavior.
So, is being a housewife or a female an excuse for not trading? Absolutely not! Let's look at this from a different angle.
When I first started trading, I was a housewife. I had taken time off to start a family and, although not in paid employment, I was extremely busy chasing after two small children. I had never traded the stock market in any form but launched myself blindly into the world of trading anyway.
I had one factor in my favor; I had time on my side. In between household tasks and running to the grocery store, I would sit at my computer reading, studying and testing my strategies and systems. This time was invaluable. While my fellow male traders may have had fancy university degrees or large trading accounts accumulated from corporate positions, I had "time" to perfect my craft.
So, prospective female traders out there: Stop making excuses! Having a university degree, a huge trading account or even a love for and strength in mathematics does not matter. There is no reason, physical or psychological, why there can't be more female traders on the markets. The only thing holding us back is ourselves.
I will leave you with one last thought, "Beware the trader housewife." We are rising up, and the markets will be a better place for it.