Women Trading in the Forex Markets

Women Trading in the Forex Markets

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    Alvexo Blog Women Traders

    When one thinks of the stock market and trading, the assumption is almost automatic in that it is predominantly run by men.  This may be the case, however there are many reasons to want more women stock traders than men.  Increasing the number of women in the stock market is said to be the solution to reduce risk-taking decisions and market bubbles. Men are prone to be impulsive and spontaneous in part due to higher testosterone levels, unlike women who are more thought driven and less likely to make hasty decisions.

    There has been documented proof that women have less risk taking behaviors than men. Utilizing data collected from trading simulation software run by Financial Skills, it was shown that in a situation where both men and women lost money, men lost more than women.  Men were more likely to exceed specified trading limits, and were 2.5 times more likely to break the rules than women. This can be a major detriment in the stock market world since one small impulsive move can lead to significant loss. The data also showed that men tend to generate higher volumes of trades and therefore created higher expenses for the banks when it comes to settlement costs and brokerage fees.  Companies want more profit and less risk. The successful 5% of people who make their money off the rest of the 95 % call themselves the Smart Money.  The Smart Money comes from trend trading, which are trades that are cautiously thought out and given the chance to mature over several days or even months, not by making impulsive trading decisions.

    More women are seeking alternative ways to increase their earning potential.

    The way in which the economy has been changing, more and more women are seeking alternative ways to increase their earning potential. In recent years, more women have been holding high powered positions in companies. There are no limits to where women can go, and what may have been formerly known as a typical male job is now fair game for women to take over.  So, not only are women entering the stock market, but also the Foreign Exchange market as well, or Forex Market for short. Similarly to the stock market which predicts whether a company’s value will go up or down, the Forex Market predicts whether a specific currency will lose or gain in value compared to another currency. The Forex Market is currently the largest market in the world. On a daily basis, $4 trillion dollars are traded on the Forex Market which puts the US Stock market in second place, only valuing up to $400 billion.

    The female Forex trader is becoming more prevalent now than in the past, however the numbers of women in the Stock market and Forex Market are still low, and more women are being encouraged to join in. This is due to the noted value women can bring to the market. A woman is likely to be successful as a trader, even better than a man, if she is already tenacious and motivated to succeed because she will have the other characteristics common to women more so than men: level headedness, administrative/organizational skills, and caution. Women tend to study determinedly before even attempting a move.  Women focus their attention on avoiding losses and earning profits rather than spending time to boast and brag about winnings like men, which is also why you do not hear much about women Forex/Stock traders as well.

    Women flock to the Forex Market

    Women flock to the Forex Market because of lack of career opportunities in the highly male dominated business world. They are finding the convenience of making trades online or on their mobile phones in between taking care or their children at home and other household chores. Trading is all about following what is trending…which can be compared to shopping.  People buy what is currently in style. In order for women, or anyone for that matter, to be successful in the Forex Market, that person will have to be confident, goal oriented, and have the ability to learn.  There are a lot of women who simply lack the confidence to get started and end up missing out on what could potentially be a life changing opportunity for them.

    Women traders have an advantage over men because women have the ability to use their intuition in making trades on how much, and when to trade.  Also women are known to be better at multitasking. With all of these traits, women have an excellent chance of success in this market, and maybe soon it will no longer be known as a “man’s world.” Women in the United States make up a little over 50% of the total labor force, but are not always given equal opportunities. Women are often overlooked or scrutinized when it comes to being in positions of power. However, if more women built up the confidence to venture out or seek the advice/know-how of other successful business women, there would be no limits to what can be achieved.

     

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