The top three female forex traders to inspire your trading progression

Forex Trading isn’t an instant route to riches. You can only trade with whatever capital you have to begin with, so everyone must start small and work their way up to the big money.

Gains come in small increments as well, so don’t expect your bank balance to swell overnight. Factor in the inevitable losses which will come with inexperience, and you can understand why novice traders get frustrated.

But slow progress is still progress, and just because you make a small profit rather than instant millions, doesn’t mean your trading career is doomed to failure. Here are some helpful suggestions on for beginners in the world of Foreign Exchange Trading and some tips from female professionals who have made it to the top.

Getting started

The Forex Market is the most traded market across the world. Because there are different centres based in places like London, New York, and Sydney, it is possible to trade 24hrs a day – when one market closes, another opens!

When you trade in Forex, you are betting on the relationship between two foreign currencies. The value of currencies is constantly in flux, making it possible to see several changes throughout the day. Because you are looking at the difference between two currencies, forex trades are always made in pairs. The most commonly trader pair is EUR/USD, but there are more than 80 to choose from, including more rarely traded currencies like Mexican Pesos. 

Top Tip: Start by trading major pairs – these are some of the world’s biggest currencies paired against the US dollar. Options include Yen, Euro, and British Pounds. You will need to research before you start, and choosing major currencies makes it easier to find information.

Know your markets

You can’t just launch into forex trading and expect to be competitive. The most successful traders spend their days analysing the wealth of information available for their market, and you should too. This will help you decide when to buy and sell. It can seem overwhelming at first, but once you start focusing on just your chosen currency pair, it will be easier to see the patterns.

You should consult charts of both current and historical activity, read the news for major announcements that could affect the economy, or use analytical tools specifically designed for traders.

Have a plan

Forex trading is a long-term game, meaning you should expect some short-term losses and factor these into your plan. Know where your bottom line is – the point at which you will sell out and start again – and make sure you stick to it.

You also need to decide on your risk tolerance level and make sure that any trades you enter into fit within this. You don’t want to ruin everything by being sucked into a deal that turned out to be too good to be true. Trading isn’t about being lucky, it’s about research and creating a plan that will work for you…as long as you always follow it.

Learn from the experts

Market trading has traditionally been seen as a man’s business, thanks to the bullish image of 1980s Wall Street. But an increasing number of women are making a name for themselves in forex trading, due to their smart analysis and ability to react quickly to market changes. Here are the top three female forex traders with their tips on how to be the best.

1) Kathy Lien

Kathy follows the fundamental school of thought when planning and analysing the market. She started out at just 19 and by 23 she had launched her own website and was well on the way to becoming one of the leading global forex experts. Keen to help others emulate her success, she has written a number of books sharing her advice for success. She also writes for leading forex websites and shares her insights with novice traders everywhere.

Kathy’s Top Tip: Create a strategy which includes withdrawing profits along the way, rather than keeping all your money in one place. By taking little amounts out you are reducing the risk of losing everything if the market takes a downswing.

2) Linda Bradford Raschke

Linda has been a commodities trader for 40 years, carving out a place for herself in the business long before the other women on our list. She is president of LBR Asset Management, a Commodity Pool Operator, and takes the time to give lectures and coach aspiring traders in order to extend her legacy.

Linda’s Top Tip: Build reactivity into your strategies. It’s impossible to accurately predict the future of the markets, and no matter how much you think you know the way the market is going to move, sometimes you will still get caught out. Having a plan on how to react to different outcomes can stop you from making a bad choice on the spur of the moment.

3) Raghee Horner

Not content with the existing methodology behind analysing the markets, Raghee invented her own – the 34 EMA Wave method. She has spent the last three decades furthering her understanding of how the markets can move and helping to pass this knowledge on to other traders. Raghee is the managing director of Futures Trading and continues to share her excellent analytical skills with others.

Raghee’s Top Tip: Find a way of trading that works for you. Some people rely on numbers, others on current affairs and anticipation how the markets will react to news stories. There’s no ‘one-size-fits-all’ approach, go with your strengths.

Hard work often pays off

It takes a lot of time and research to become a successful forex trader, but these women are proof that your hard work will pay off in the end. Getting advice and inspiration from those in the business is a great way to set yourself on the right path, so if you have aspirations to become the next successful female trader, make sure you learn from the best.