Why women make the best stock traders

Knowing when to sell Ideally, traders try and sell when the price is high, even better when the price is unjustifiably high. But these opportunities do not arise every day and not all traders are equipped to detect them. For example, in Finland, females waited until 1998 to increase the rate at which they sold Nokia stock to men. Around that time, Nokia had not increased in price by 10%, or even 100%, but by 5,000% (yes, 50 times) due to pressure from US institutional investors. Similarly, in 2007–08, when Nokia once again boomed following it’s collapse in 2002, the rate at which female investors sold to men increased again. Their pessimism was justified as this boom preceded the global financial crisis collapse premium trading signals. And we are here to reveal it all. Join Investmentals Premium now for best Trading Signals, combining almost all of the Technical Indicators and Years of Back-tested Data, along with Premium Money-Related blogs and AdvanceAnalysisd Market . Although male trading activity increasingly dominated female trading activity over the 17 years we studied, female trades were more successful. Female traders managed an annual internal rate of return of 43% on their Nokia holdings, and 21.4% across the 28 stocks. The males, meanwhile, had correspondingly high losses — negative returns of -43% and -21.4% on their completed trades.

Why is there a difference? Our study shows female traders are far more “contrarian” than their male counterparts. They tend to buy stock following severe price falls and sell to males following substantial price increases. Females appear to lose money in the short-term (buying as prices fall, for instance), but gain in the longer-term following severe price reversals. Because of our ability to track trades over a long period, based on actual buy and sell trades, we can see that it is not valid to conclude from short-term price declines that females suffer losses. On average, females buy cheap and sell dear, indicating they are far more informed than males. This apparent contrarian trading strategy has the added effect of stabilising markets. In fact, the very large collective profit of 19 billion Euros that Finns made by trading with foreign (largely US) funds over the period of our study is due to the destabilising trend-following behaviour of the foreign institutions. These foreign institutions were easy pickings for both smart and informed Finns, whether they be households or domestic funds, indicating that traders are better off investing domestically in markets that they better understand and have an information advantage. To confirm this, we pitted males located in the Greater Helsinki region — near lots of company headquarters, against males located in the rest of the country. We similarly pitted females against other females based on their location. This experiment showed that locals tend to profit. But this didn’t hold across genders. Female traders located in Greater Helsinki profited even from trades with males in the same region, while females in the rest of the country also profited from their male counterparts. A striking feature of all our analysis is that Finnish households don’t behave in the manner that is depicted in standard finance texts. When they invest their own money they don’t diversify by holding the a representation of the “market”. In fact, on average the number of shares in their portfolio is only 3.4. Contrary, also, to popular belief, households trade very little compared to institutional investors. Very small and focused portfolios ensures far better management of the timing of trades. More

Why don’t super funds time markets?

The past financial year has been one of the most volatile on record for stock markets, yet almost every Australian super fund has delivered similar returns. This not only demonstrates that super funds very rarely make large calls about when to buy and sell, it also gives an insight into what we should do when making our own investment decisions. Back in mid-February stock indices in Australia and overseas were at all-time highs. As COVID-19 took effect stock markets collapsed about 40% in less than five weeks.

Then over the following three months amid massive injections of stimulus, both monetary and fiscal, many of those markets rallied by close to 40%. A super fund prepared to trust its judgement on timing could have done very well indeed, selling “going underweight in shares” as the news of COVID hit, and then buying “going overweight” when the market hit bottom. In fact, few did. The data insights firm Chant West reports that most so-called growth funds (exposed to growth assets such as shares) did much the same thing, recording a median loss of 0.6% over the year, gaining 6.4% in the seven months to the end of January and losing it in the five months that followed Advanced market analysis. Why don’t super funds time markets? Super funds are hesitant to aggressively time markets because it is both challenging and risky. Even with the benefit of hindsight it is difficult to identify all the reasons why a market moved in a particular direction. It is harder in real time, when a judgement needs to be made about whether a movement will continue. No single person or firm has access to all information, both public and private, and knows how to weigh each piece of information through time. It’s even harder for us Consumers find it even harder to time markets. Institutions have better access to information and insights, and the people who run them generally have better qualifications and experience. And we are misled about how consistently they can get it right. Investment funds usually don’t mention the managers who under-perform, and the media loves winners.

Everything you need to know about CBD oil

CBD is one of many cannabinoids (compounds) in the cannabis plant. Researchers have been looking at the possible therapeutic uses of CBD. Two of the compounds in marijuana are delta-9 tetrahydrocannabinol (THC) and CBD. These compounds have different effects. Until recently, THC was the best-known compound in cannabis. It is the most active constituent, and it has a psychological effect. It creates a mind-altering “high” when a person smokes it or uses it in cooking. This is because THC breaks down when a person applies heat and introduces it into the body.

CBD, in contrast, is not psychoactive. It does not change a person’s state of mind when they use it. However, it may produce significant changes in the body, and it is showing some significant medical benefits. Where does CBD come from? CBD comes from the cannabis plant. People refer to cannabis plants as either hemp or marijuana, depending on how much THC they contain. Over the years, marijuana farmers have selectively bred their plants to contain high levels of THC and other compounds that suited their interests. However, hemp farmers rarely modify the plant. CBD oil comes from these legal hemp plants. How CBD works All cannabinoids produce effects in the body by interacting with cannabinoid receptors, The body produces two receptors: CB1 receptors are present throughout the body, particularly in the brain. They co-ordinate movement, pain, emotion, mood, thinking, appetite, memories, and other functions. CB2 receptors are more common in the immune system. They affect inflammation and pain.