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 a 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.
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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