There is no doubt that women’s trading habits are different from those of men. We all operate under the same set of trading rules, but the results are not always the same. Each individual thinks differently which influences our approach to trading and investing.
Trading involves aggressive investing behaviour and high risks. Women have a reputation for being conservative investors. Therefore, it may seem that it is not the perfect mix.
Does this mean women have no place in the trading industry? Not quite. There are female traders who are considered to be successful traders.
Trading is one of the proactive ways that you can make money from the financial market. Investors are looking for long-term investments and profits that gradually grow over time.
On the contrary, Traders want to make quick returns by buying and selling financial instruments in the market. Trading can be done in the form of stocks, foreign exchange (Forex) and other products.
Being a successful trader, regardless of gender, is far from easy. Trading platforms like IG.com provide traders with the tools they need to make smart financial decisions. It takes a combination of skill, instinct, a deep knowledge of the market, and the right attitude to become a successful trader.
If your finances can afford a higher risk tolerance and higher returns, then do not let anything hinder you. Get to know the trading habits that have made powerful women.
The New Savvy (TNS) sat down with two female traders who shared with us their secrets.
TerraSeeds Binni Ong: Trading slowly and being consistent
Binni Ong is the Co-founder and Chief Strategies of TerraSeeds Market Technician Pte Ltd. The company provides online training through OnlineForexMaster.com.
There are participants from more than 40 countries attending their free online Forex courses. In return, this continually strengthens Binni’s trading habits. The 40-year old trader shared her ideas and experiences – some of which can be seen in her trade diary: The Alien Room.
TNS: How long have you been trading Forex for? What do you focus on as part of your trading strategy?
Binni: I have been trading Forex for the past 14 years and equities for the past 20 years. Our trading strategies, Tflow®, can be applied to any instrument – equities, Forex or commodities. It measures the price action and time duration of a trade. This allows us to spot explosive and big movements in the market.
This strategy is suitable for traders using any timeframe. However, it is more suited for swing traders where each trade can last for 1-3 days with a target of 100-300 price interest points. The method mainly uses our proprietary Box Theory to identify the direction. Along with the integration of applied Elliott Wave and advance Fibonacci as a timing tool for trade execution.
TNS: What are some of the common mistakes that you typically see new traders making?
Binni: Some traders easily believe that by learning a concept or strategy, they could trade successfully and win money. They forget that trading requires experience which has to be accumulated over time. Instead of mastering a technique, many traders become course-seminar junkies where they pick many techniques which they forget.
Too many inputs are being considered; From the news, fundamental to the technical. This makes their analysis messy or lacking a clear-headed approach. They believe in get-rich-quick schemes involving robots ‘secret techniques’ but lose sight of long-term training, mastery, and growing the right trading psychology.
TNS: How do you think being a woman makes you are better trader/investor compared to men?
Binni: I take things slowly. I am not adrenaline-charged like my peers. When I started trading, I went on smaller trading sizes than most of my peers who are male traders. My profits are much smaller (likewise losses). Although, it did keep my account in a comfortable shape while my experience bank was building.
I was able to hit some great trades consistently while some of my male peers have flashes of brilliance then bomb out suddenly. I was also very busy with my 2 children – being a stay-at-home mum. Instead of day trading, I take a longer view of markets.
This makes me very profitable compared to those who have lots of time staring at the screen.
They end up losing more money because of short-term noise. I spend about an hour or two analysing trades only, with the rest of the time distributed between business building, family, and exercising. I think that trading, like raising children, should not be impulse drive. My approach is long-term – never-say-die. There are many like-minded women in my trading community who are doing very well.
SG Budget Babe Dawn: Knowing yourself and the market
Dawn, or SG Budget Babe, is a 27-year old finance blogger. Through her blog, she documents her efforts to achieve financial freedom before she reaches her mid-40s. She uses trading as one of her strategies to achieve her financial goals despite the rising cost of living in Singapore.
TNS: How long have you been trading and what do you focus on as part of your trading strategy?
Dawn: I’ve been investing in bonds and equities since 2014. My previous “investments” were limited to choosing my funds in my ILP. Eventually, I cancelled it after a few years when I realised there was no point paying someone else such high distribution fees. I could just invest directly.
My trades range from a holding period of a few months to a few years. I focus on capital gains. I believe that time is on my side.
TNS: What are some of the common mistakes that you typically see new traders making?
Dawn: Buying or selling based on emotions. It takes conviction to buy when everyone else is panicking over the market, and stay out of the markets when sentiments are bullish. It is easy to say “buy low, sell high” but the real-world application is not as easy. Learning about yourself and how you behave in the financial markets is the most important skills if one wishes to be successful.
TNS: How do you think being a woman makes you are better trader/investor compared to men?
Dawn: Most females tend to be more detail-oriented than our male counterparts by nature, and we are often also more sceptical. This can work in our favour when we evaluate a counter before putting our money in. We are also less inclined to take big risks or gambles, so that can serve us well too.
What trading habits can we learn from these female traders?
So what are the women trading habits that we can take from these successful female traders?
- You have to know yourself to understand your trading behaviour. To be specific, you need to understand how you will react to the market. It will help you prepare yourself, so your emotions will not rule your decisions.
- Be detail-oriented and do not be impulsive. There are times when impulse-driven decisions are okay – but not when you are trading. Always know the costs of your decisions and weigh the effects of your investment.
- It is okay to take lower risks. Take small steps if that is where you are comfortable. You do not have to take big risks even if that is what your peers are doing.
- In the beginning, focus on experience rather than profits. Focusing on the small profits and losses will make you feel discouraged. Instead, you should focus on the experience that trading is giving you. Learn from each of them so that you can improve your decision-making process in the future.
- Have a life outside trading. While you need to study the market, it is not a good idea to focus too much on its every move. You will feel stressed, and the overload of information might cloud your mind and lead you to make rash decisions.
Trading wisely requires you to have the right tools and requires you to trust the right platforms. IG Asia Pte Ltd holds a capital markets services license from the Monetary Authority of Singapore that allows them to deal in securities and leveraged foreign exchange trading. Get to know more about using their platform to use their tools and resources to trade in the financial market actively.
This article was sponsored by IG, the world’s No.1 CFD provider (by revenue excluding FX, 2016). All views expressed in the article are the independent opinion of The New Savvy
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