Being a trader is still a masculine dominated profession. According to a recent study only 1 out of 7 online traders are female. But this figure has already increased since 2017’s results – which found out that 1 in 10 were female. As a result of those statistics, you can assert that female traders are becoming more and more prevalent.
In comparison with men, women has lots of traits who are quite useful for the job as a trader. For example the trait that all women tend to possess by nature is to protect. That’s why female traders might then potentially have a long-term orientation, and may possibly take on lower risk trades. We talked with the German attorney, bestselling author, consultant and expert of international capital markets, Sandra Navidi, about the work as a trader and how it is to be a female trader.
What is the difference between a trader and a broker?
A broker is always a business mediator who gives the trader access to the markets for a fee. In our case, in addition to information
and training offers, the trading platform, the quote and the payment options are available to the trader. The broker is required by the regulatory authorities to behave in any market situation strictly neutral to the dealer and not to pronounce any trading recommendation.
Why is it still the world of a man?
This question is very difficult to answer. In many areas of society and economics, equality has not yet fully arrived, or at least is capable of development. The financial industry is traditionally more conservative and is moving very slowly in such matters.
Are there cultural differences?
Whether there are more or less women in the North American or Asian financial markets, I cannot say. However, American society probably has a fundamentally different relationship to failure. While Germans tend to equate failure with total failure, in the US this is no reason not to try it again. Especially in the financial markets, as a trader, you are repeatedly confronted with setbacks and losses.
Female intuition should be an advantage.
Intuition certainly plays a big role in the selection of instruments, but not exclusively. Making decisions based only on a gut feeling is certainly not the way to go. Nerve strength, discipline, well-planned procedure and strict risk management are prerequisites for successful trading. In these areas, I see women more at an advantage over their male counterparts.
Moreover, women have been underrepresented in the financial markets in the past. As “newcomers” you have the chance to introduce completely new methods and behaviours and to break up existing structures. I think, all in all that would be a positive effect for the whole industry.
If 9.6 Million Online Traders Were 100 People, courtesy of BrokerNotes
Which studies are necessary to become a trader?
Training or studying in the field of finance is certainly an asset, as it offers future traders easier access to Forex or CFD trading. But it is not necessary. A fundamental interest in the financial markets or economic issues as well as the willingness to learn again and again should already exist.
The optimal entry into trading is not age-dependent, but it depends on a trader’s respective personal situation. I recommend starting with a trading demo with accompanying tutorials to familiarize yourself with the markets first. Beginners should take the time to get acquainted in peace and without real risk.
How important are languages?
Even if there are sufficient information offers in the national language in the German-speaking area, good English skills are always an advantage. A whole range of specialist terms are in English and often have no really fitting German equivalent. It also gives you better access to international news sources. This can be particularly beneficial for instruments traded on foreign markets, such as the DOW or the S & P500.
What significance does the mathematical analysis have?
For example, in longer-term equity trading, fundamental data, such as company news, are very important for the investment decision. Daytrading with Forex or CFDs works differently. In highly volatile markets, technical analysis or mathematic probabilities provide the foundation to invest in a particular instrument. The market movements are based on patterns that can be analysed with appropriate know-how in the chart.
Also, in Forex and CFD trading, it is possible to bet on rising (“long”) or falling (“short”) values. This offers the trader significantly more entry options than the classic investor, whichwould not be found alone with fundamental data.
Are there any magic formulas in the trade?
The magic formulas are strict risk management, discipline and a clear trading plan. Every trader should be aware in advance of the total amount of capital he will use to trade, the level at which he trades and the risks he intends to take. Losses are commonplace in trading and should always be part of the planning.
When trading it is extremely important not to deviate from its own specifications during ongoing trades. Once a trader recognizes that his plan does not work out, a trader should interrupt active trading and peacefully review his goals and methods.
What is the golden rule?
Self-reflection. As a trader, I have to be aware of myself and my situation. A trader should never be satisfied with himself. Therefore you have to question yourself constantly. Not for nothing it says “a trader fails not at the markets, but always to himself”.
What are my goals, where do my weaknesses lie or what puts me under stress are aspects that you should check again and again. In addition to the fundamental question of capital, this also includes the family and professional environment. What do my relatives and friends think about my interest in the financial markets? Do I have enough time to deal with the relevant things of trading, besides my other obligations?