Why You should Trade With Your Spouse Permission

13 Nov 2023

Let's talk about John, who loves to make quick stock market choices. He used to decide alone and felt good about it. But after marrying Emma, who likes to think things through, they started making these choices together. This change brought something unexpected – John started doing better in his trades.

Understanding the Effect of Asking Your Spouse Before Trading:
A study by experts Terry Odean and Brad Barber looked at how asking your spouse before trading affects how well you do.
papers.ssrn.com/sol3/papers.cfm?abstract_id=139415

Table: How Well People Trade with or without Spouse's Permission

This table shows us something interesting. When men checked with their wives before trading, they were more careful and made better choices. But single men, who traded a lot and didn’t ask anyone, didn’t do as well.

For women, it was different. Those who had to ask their husbands didn't do as well as women who made choices on their own. This might mean that when husbands get involved, they could add pressure or confusion, affecting women’s trading in a not-so-good way.
This study makes us think differently about trading alone. It shows that talking things over, especially in marriages, can actually lead to smarter choices in the stock market. It also reminds us that sometimes, sharing decisions can be better than going at it alone.

So men, if you just had a series of bad trades, you might do better by consulting with your spouse.

And for single men who had bad trades you might need to get yourself a woman.