From Which Planet Do They Come from? Biases in Trading Strategies: Does the Gender Matter?

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Alain Finet
Julie Laznicka
Hugo Palumbo

Abstract

Using a qualitative design based on experimental finance, we analyzed to which extent behavioral and cognitive biases could develop in a differentiated way according to the gender of investors. To do this, we considered a sample of 17 students in a two-hour continuous trading situation. Our results, which were collected through descriptive socio-demographic data, reading trading journals, and answering closed questionnaires, confirm the findings of many studies devoted to this issue. They show that women trade more carefully, with higher levels of diversification than men. Beyond this result, we also demonstrate the importance of women's greater use of heuristics, which raises the question - not necessarily resolved in the scientific literature - of the influence of intuition and instinct on decision-making processes. This twofold observation seems even more important given that women's financial portfolios were the best value in the deteriorated stock market context of the experiment. We also argue that the chronic male overrepresentation in trading rooms could be a facilitating factor in the development of speculative bubbles.

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How to Cite
Alain Finet, Julie Laznicka, & Hugo Palumbo. (2025). From Which Planet Do They Come from? Biases in Trading Strategies: Does the Gender Matter?. The International Journal of Business & Management, 12(12). https://doi.org/10.24940/theijbm/2024/v12/i12/BM2412-002 (Original work published December 30, 2024)