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title: Do Women Make Better Traders Than Men? | TIME
description: Rana Foroohar explains why  hedge fund giant Paul Tudor Jones was wrong when he said women, especially mothers, are too emotional to be good traders
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# Do Women Make Better Traders Than Men?

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<!-- video src="https://cdn.jwplayer.com/manifests/3n9w1U3T.m3u8" -->
## Video: Do Women Make Better Traders Than Men?

[Watch (HLS stream): Do Women Make Better Traders Than Men?](https://cdn.jwplayer.com/manifests/3n9w1U3T.m3u8) (2:20)

![Do Women Make Better Traders Than Men?](https://cdn.jwplayer.com/v2/media/3n9w1U3T/poster.jpg?width=720)

_Published 2013-05-29. Rana Foroohar explains why  hedge fund giant Paul Tudor Jones was wrong when he said women, especially mothers, are too emotional to be good traders_


---

Jul 27, 2023 3:35 PM UTC

---

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### Rana Foroohar: Surprising Deficit Numbers Highlight Growth

---


## Transcript

[ MUSIC ] You may have heard hedge fund giant Paul Tudor Jones's recent comments that that there will never be as many good female traders as male traders because the experience of having childbirth is simply too emotionally distracting for them. To be fair, Paul Tudor Jones also said in that speech at the University of Virginia, that folks who are going through a divorce of either gender could also be distracted and see their performance slack on the job. But the key point here is that traders, in order to be winners, need to stay at a distance from their emotions. Well, that's actually true over the long haul, which is what's so interesting and so flawed about Paul Tudor Jones' comment.

[ MUSIC ] There's been a lot of research about the connections between emotions and trading since the financial crisis, as regulators, academics, and politicians have really struggled to understand how we go through boom bust cycles and what could be done to make the market safer. [ MUSIC ] One of the most interesting studies has been done by a former Goldman Sachs and Deutsche Bank trader named John Coates, whose book, The Hour Between Dog and Wolf, looks at the biochemistry of the big trade. What's very interesting is that Coates found when he tested the testosterone levels of traders, that they went up in a snowballing cycle as they were trading more and more money.

Eventually, this would lead to bigger wins. But at some point, the wins would change to losses as their behavior became riskier. Coates argues that if we had more women on trading desks, the financial system would actually be safer. There are also a number of other studies that show that women, over the longer haul, tend to do better with trading than men because they buy and hold stocks longer. There are a lot of long term policy implications to this. [ MUSIC ] For starters, regulators are starting to look at ways to curb short- term trading by changing the compensation structures of traders.

Providing them pay for five years returns versus one year return. Experts like Coates say that that's likely to favor female traders and also older traders who are less likely to experience the testosterone- driven peaks and valleys that younger male traders do. [ MUSIC ]

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