In recent years, trading currencies have been easily
accessible to all kinds of traders all over the globe. The Internet
made it possible for the average person to participate in
country-wide, international, and global markets. The largest single
market in the world – the forex market – is no exemption in this
rapid growth.
With the rapid growth of investing and trading around
the world, how much of the numbers are made up of women? Only 15%
of traders in investment banks are women, and annually, the number
keeps on falling. Only 6% are women in Brevan Howard and only 7%
are women in BlueCrest Capital Management.
Despite these poor numbers, studies have shown that
there’s significant development in women traders’ performance
compared to men. Some personalities in the world of finance can
even go forth and claim that women make better traders than men.
Why so?
Women find it easy to deal with mistakes.
Trading is a profession where mistakes can be extremely
costly. Although, it’s inevitable to make mistakes, it’s still
important to be able to deal with them in a constructive and
professional manner. Studies show that women excel in accepting
and moving on from a mistake compared to men. Unlike women, men
generally tend to put themselves in a position where they have to
prove something. Women, on the other hand, just want to learn, do
the right thing, and let life go on.
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Women handle emotional turmoil well.
They say that women are too emotional for most types of
work. This can’t be more wrong in the world of trading. Women are
actually the more disciplined and more in-control traders on the
floor. Women do not think about scenarios where people will
ostracize, criticize, and demean them for actually having human
emotions. They can solve problems because they can acknowledge the problem’s existence in the first
place.
Women have no problems with not trading if they think it’s not wise
to trade.
Women are less prone to overtrading. Overtrading
is a condition where traders cannot stop trading after spotting
opportunities everywhere in the market. It can cause physical and
mental exhaustion, emotional fatigue, and worse, irrationality.
Irrational traders are losers. Winning traders know when it’s not
healthy, wise, or just profitable to trade.
Women stick to the strategy and follow procedures
consistently.
Like what’s implied above, women, generally, do not put
themselves in a position where they have to prove ourselves. Why?
Because women do not recognize any need to prove themselves. As
traders, women prefer to follow strategies their seniors teach
them, stick to it, and learn more if mistakes happen here and
there. Men, on the other hand, are likelier to prefer “having it
their way.” In this light women manage their trading schedules better since
they’re able to follow better trading strategies.
Women measure their ability to control the situation
first.
Women, throughout history, have been measured by the
thing they cannot control or the things they cannot do. This kind
of “conditioning” developed a “test the waters” attitude in women
that is very, very crucial in trading. Women do not commit to
things that they cannot measure because immeasurable things are
uncontrollable things. Men, although more risk-hungry, are more
likely to jump into trades head first, exposing them to large
risks.
With all these points, we can say that women are in a
great position to start a career in trading currencies. These
points are not made to discredit men’s ability to trade profitably.
Rather, they are made to point out the advantage the female
personality offers in trading.
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