Trade Like a Man - Control Risk Like A Women

26. July 2009 by Dan Walkow, CFA, CMT.

When stressed, studies show men tend to take on more risky bets and gamble whereas women, when stressed tend to pull back and control risk.

Generally speaking I think this to be true, as I reflect back over 30 years of working with investors. My own sense is that women could be a little more aggressive and men should temper the tendency to hit a home run on speculative stocks.

Most investors focus on the “investment return” side of the equation losing sight of the fact that investing is a two-sided coin where risk and return are joined at the hip.

Risk management is a crucial part of sucessful investing over the longer term, do you have a risk management framework?

For more on risk management and using a concept called “risk bucketing” sign up for our email newsletter . It’s free! Check the study out here.

——–Stressed out, dude? Don’t go to Vegas.

New research, to be published July 1 in the journal PLoS One, shows that men under stress may be more likely to take risks, correlating to such real-life behavior as gambling, smoking, unsafe sex and illegal drug use.

In contrast, stressed women moderate their behavior and may be less likely to make risky choices, the study found.

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