Forex and stocks trading has long been a “boy’s club,” as the industry has traditionally been dominated by males. But thanks in part to electronic retail trading, that’s starting to change. Women are entering Forex trading en masse, and they’re well-positioned for lucrative careers in the field.
In Japan, for example, women make up 25% of the retail Forex trading system, according to TIME. And in Australia, female traders make up 10% of the day-trading workforce. Over the next decade, those numbers are expected to rise dramatically, with an even greater number of women starting trading careers.
The reason is simple. Currency trading offers a prime opportunity for female traders. For starters, the hours are flexible with trading available 24 hours a day, 5 days a week. That makes it possible for anyone – from career women to stay-at-home-mom – to start trading in their free time. Further, research has shown that women are more risk-averse, less stubborn, and more likely to stick to a strategy, all of which are critical for Forex trading success.
Balancing Confidence, Managing Risk
Forex trading is fast-paced, and it requires the trader to properly manage risk. Yet, an abundance of confidence can lead to greater risk-taking, which is detrimental to successful trading. Studies have shown that men are overconfident in the high-speed world of stocks and Forex trading. Overconfidence in a trade, though, can often lead the trader into over-leveraging a position – which can quickly cause losses to add up.
Alternatively, women are more cautious in investing, according to a number of studies. In fact, sometimes they’re too risk-averse. The key is finding the middle ground – between overconfidence and being overly cautious. In Forex, though, erring on the side of caution, especially when the trader is still learning how to trade profitably, is more beneficial.
Strategy is Key to Day-Trading Success
The key to day-trading success is using and sticking to proven Forex trading strategies. Research has shown that women are much more likely to stick to their Forex strategies. For one, women are less stubborn, which can help them exit or take profit before the trend reverses on their position.
Plus, research has shown that women are more likely to open fewer trading positions. This is important because juggling too many open positions is difficult, especially for beginners, and it can quickly cut into profits. Excessive trading is commonly associated with reduced profit margins over time for retail traders.
Learning Forex Trading by Networking
To generate wealth in Forex trading, you must have a strong base of knowledge regarding the foreign exchange, brokerages, and analyses. Women and men, though, tend to differ in how they prefer to learn about the markets. Men, for example, typically study on their own, through research and reading. Women, on the other hand, typically do better by learning in small groups and through networking.
Investing in the Foreign Exchange makes a lot of sense for women. The hours are flexible, the money can be very lucrative, and the research is clear that women make great Forex traders.
About the Author
Emma Kopinska is a highly creative marketing professional with six years of experience delivering global campaigns across a variety of industries through multi-channels to both B2B and B2C audiences. Later she has joined in Learn To Trade Australia as Marketing Manager in 2014.