Nov 9, 2024
Written by:
John McDowell
Historically speaking, the world of stock trading has traditionally been dominated by men. But that heuristic is quickly changing. Women are increasingly breaking into the industry and making a huge impact. With older societal norms restricting women from education, employment, and property norms, it is no surprise that the modern push for equality is progressing women's contributions to stock trading.
In this article, we'll look at the key challenges, inspiring stories, industry trends, and advice for women entering the market today.
When you imagine a trading floor on the New York Stock Exchange during the Roaring Twenties, what comes to mind? Is it men and women both running about, calling out bids? Probably not. These trading floors have been dominated by men since 1792 when the NYSE came to be. That is with one caveat: during WWII, women were hired to fill positions by men who were sent overseas for war.
The very first seat on the NYSE filled by a woman came in 1967. Her name was Muriel Siebert. She was an advocate for women's rights and financial literacy, founding the Muriel Siebert Foundation to educate lower-class women on financial stewardship.
"Muriel Siebert dubbed the “First Lady of Wall Street,” was an inspirational figure in the world of finance, and her legacy lives on in the many women she has inspired to pursue careers in the industry." -- Workweek.com
It wasn't until the 1970s and 80s that women became a real presence on the trading floors of any of the major exchanges. Here are a few prominent examples:
This steady increase in women participating in trading and finance has paved the way for progress in the '90s and 2000s. As the influence of online trading and new platforms has evolved, female participation has grown substantially.
It is no surprise that women have held a smaller percentage of C-suite positions and board memberships in financial institutions than men. The wake of historical legal and social barriers to accessing financial services like bank accounts and loans hindered the progress of women for centuries. Add to that the stereotypes that women's financial capabilities and decision-making abilities are inferior to men's, and you begin to see why women might be discouraged from engaging in financial markets.
Society has often expected women to be the caretakers at home, managing the details of the children, the home, etc. The high-pressure, high-stakes environment of trading presented unique challenges for women who also felt the burden of family responsibilities. This isn't necessarily peculiar to finance, though. The balance of work and personal life for women has been an ongoing discussion and debate for many years. While other psychological and cultural biases may come into play here, fewer women indeed choose an education in finance and business than other career paths, which ultimately leads to a smaller pool of female candidates for senior roles in the financial sector.
Women are generally less impulsive in markets. According to a Wells Fargo study observing trends between 2012 and 2022, "women achieved higher returns while taking on less risk than men." In other words, women tend to be more conservative investors.
Here are some interesting statistics uncovered by The Motley Fool regarding women investing in the stock market:
While Muriel "Mickie" Siebert still carries the crown as the "First Lady of Wall Street," many other women have made their mark on the financial world as well. Here are a few women and their contributions that have paved the way for equality and representation on the modern Street.
Victoria is most known for her political activism and was the first woman to open a Wall Street brokerage firm in 1870. Woodhull, Claflin & Co., she served the likes of Cornelius Vanderbilt and attracted a lot of attention from the media. She ran for President of the United States in 1872 under the Equal Rights Party. Her boldness bucked the entrenched gender norms of her time.
Isabel Benham had a knack for analyzing railroad bonds. This eventually led her to great success as a fixed-income and corporate analyst. In 1964, she became a partner at the R.W. Pressprich & Co. bond house, the first woman to do so at any Wall Street bond house.
From the old days of Mickie Siebert and Isabel Benham, there are many women from the 90s to the 2000s who have changed the industry for women. Many of these women have left their mark on trading through major firms, trading desks, and successful banks and hedge funds. Here are just a few:
Kathy began her trading career at the age of 18. She joined Wall Street after graduating from the NYU Stern School of Business. At JPMorgan Chase, she became a recognized authority on forex trading. Later, she worked at DailyFX as Chief Strategist and FXCM where she created educational content and shared strategies for retail investors. Eventually, she cofounded BK Asset Management with Boris Schlossberg where she continues as Managing Director, focusing on forex pairs like EUR/USD, USD/JPY, and GBP/USD. She has several books to her name.
Known for her "Holy Grail" setup, a pull-back to the 20-period moving average, and her appearance in Jack D. Schwager's The New Market Wizards, Linda is a highly respected trader and author who's made her mark on commodities and futures trading in the late 20th and early 21st centuries. She began her career in the 1980s at the Pacific Coast Stock Exchange as an options trader but eventually became an independent trader, Commodity Trading Advisor, and hedge fund money manager of her own LBR Asset Management. Linda is a strong proponent of technical analysis and price action, often sharing her trades, ideas, and expertise on her social media channels.
Anna Coulling also deserves a spot in this category for her content on volume and price analysis (VPA). We're big fans of her seminal work, A Complete Guide to Volume Price Analysis. She is a prolific, best-selling author on price-action trading and a jolly British lass. She's a self-taught trader who built her skills through years of personal study and experience, starting as a retail trader. Her emphasis on VPA is one of the best-known methods for understanding market trends and identifying entry and exit points.
Many young women are making their mark on the markets. During Covid-19, the stock market saw a massive influx of new traders, many of whom were women. Not only that, but you see the rise of social media influencers and trading community leaders. Here are a few worth following:
Shay Huang, known as Humbled Trader, is a Canadian day trader who shares funny, down-to-earth videos on YouTube. She has over 1 million subscribers there. Her tutorials on market analysis, honest reflections, and insights into stock trading, options trading, and risk management are very popular among budding traders.
Michele, aka Off Shore Hunter on X, is a swing and day trader who lives in Montana. She's a tough girl who loves to fish and loves her horses. Indeed, she carries a pretty tough track record in the stock market as well. So well, in fact, that she is semi-retired. For many years, Michele moderated the swing trading room in one of the most successful trading chat rooms of all time, InvestorsUnderground.com. She still posts many ideas on her X.com page with the handle @offshorehunters and is active in the Investors Underground community.
Mariana got her start with Timothy Sykes. As a Colombian-American woman, she is an inspiration to many women to get involved in trading, claiming it doesn't take much superficial knowledge of math or other advanced financial education. Mariana proved this by becoming Sykes's youngest female protege to reach the million-dollar milestone. In a two year span from July 2020 to July 2022, Hincapie amassed over $1.5 million in profits according to Profit.ly. ¡Qué chévere!
The rise in popularity of online retail trading technology beginning with E-Trade in the 90s and Robinhood and Webull in the 2000s has democratized the ability for more and more women to trade. The "good 'ol boys club" of Wall Street, which has its notorious exclusivity to men, is no longer a necessity to make millions in the markets. The growth of social trading platforms and online communities has made markets more inclusive.
Research reveals that women are increasingly drawn to sustainable and impact investing, more so than men. Women tend to be more inclined to focus on long-term goals, risk aversion, and decisions based on values or social responsibilities. Indeed, women view investing as a tool for positive change versus a way to generate returns. Similarly, women tend to place more importance on transparency and ethical business practices, as seen by research conducted by Calvert Investments and Morgan Stanley.
Women are controlling a growing share of global wealth, particularly through inheritances and entrepreneurship. As such, financial services must adapt to the specific preferences of women. Younger generations of women are increasingly mindful of their financial legacy and ability to plan for a comfortable retirement. This future looks very promising through advancements in technology and a more inclusive industry with easier access to trading knowledge and education than ever before.
Focus on education and skill development. If you are just starting, take online courses, attend webinars, and read market analysis regularly. Join a community or two and find one that fits for you. But, take your time and manage risk, especially early on. Mariana Hincapie didn't trade with real money for an entire year before she started with Timothy Sykes's Million Dollar Challenge. Keep that in mind. Here at Tradingsim, we offer the ability to practice and replay markets with live details, no matter what time of day. Study by replaying markets and testing your strategies.
Find mentors and join communities. No skilled trade is ever learned without watching and learning from those who go before us. Trading is no different. It takes mentorship, proper modeling, and scaffolding of the learning process to get to where you want to be. As you trial online communities, take each with a grain of salt. Ask for your mentor's track record, glean what you can, and above all, learn to trade on your own. Followers are rarely successful in this business.
Develop emotional resilience and confidence. Trading is stressful. It's inevitable. When half of your life savings can be deployed at the click of a button, the uncertainty of whether or not it will go up or down could wreak havoc on your nerves. Learn to trust in a process that you've tested well enough to know when it works. Celebrate wins and cut losses quickly. Learn from them. Reset, and refocus.
The world of stock trading has historically been dominated by men. Yet, it is seeing a significant rise in female participation. Could this shift be due to gender equality movements and heavier recruiting for female traders in the industry? Possibly so. With easier access to education and fewer stereotypes, women are making an impact in the financial world.
From early pioneers like Muriel Siebert to modern-day influencers like Humbled Trader and Mariana Hincapie, women continue to break barriers like workplace biases and balancing family responsibilities.
For aspiring female traders, find your niche. Find your trading home. Learn to navigate the ups and downs of the markets. And most of all, bring your lady friends to the party, and let's all make money together!
If you're just getting started, give TradingSim a try free for 7 days. Learn to trade the markets with virtual money before you risk your hard-earned cash.
Here's to good fills!
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