For many of our foreign exchange traders, whether EQ or IQ is important, I think everyone has their own judgment in their hearts. But in my opinion, for us foreign exchange traders, IQ determines whether your views on a market are correct, and EQ determines whether you make money in a market.
why do you say so? I don’t know if everyone has this kind of situation. Originally, the view on a certain market is very accurate, but in the actual transaction process, there is no way to make a lot of money, either the position is too low, or it is out of the game early, and there is no way to make money. desired profit.
Next, I will talk to you about EQ and IQ in the process of foreign exchange trading.
Of course, first of all you have to understand what is EQ and IQ?
IQ, that is, the level of intellectual development of a person, is usually expressed by an intelligence quotient, which is referred to as IQ in English. IQ reflects a person's cognitive ability, thinking ability, language ability, observation ability, calculation ability, rhythm ability, etc. That is to say, it mainly expresses the rational ability of human beings.
Emotional quotient, that is, the ability to recognize and manage one's emotions and deal with interpersonal relationships, is usually expressed by emotional quotient, which is abbreviated as EQ in English. Emotional intelligence reflects a person's ability to feel, understand, use, express, control and regulate his emotions, as well as his ability to deal with the emotional relationship between himself and others. It mainly reflects the individual's ability to grasp and deal with emotional problems.
In short, IQ is the premise, and EQ is the guarantee. The relationship between the two complements each other and is indispensable. Comparing the two, EQ is more important than IQ.
As long as everyone has the concept of EQ and IQ, it will be easier for us to understand how EQ and IQ affect our transactions.
In the process of foreign exchange trading, fundamental and technical analysis and data interpretation are closely related to IQ. It determines whether your interpretation of the market is close to the market and conforms to market laws. To put it bluntly, it means whether the analysis is correct or not. Psychological quality, correct investment philosophy and effective fund management are closely related to emotional intelligence, which determines whether you can persist in managing yourself in this unpredictable market.
To say which one is more important to our foreign exchange trading, I think IQ and EQ are equally important and complement each other. If you are at the same level of IQ, EQ is higher than IQ, because it determines the amount of your profit.
Just imagine, if an investor has a high IQ, through thorough basic analysis and technical analysis, he has a clear understanding of the development trend of the market, but is hesitant and indecisive in actual operations, his mentality is unstable when holding positions, and he is greedy when the exchange rate rises. The exchange rate fell and panicked. How can you make a profit in this way? Similarly, if a person has a high emotional intelligence, if he misjudges the direction of the foreign exchange market, no matter how good his mentality and capital management are, he will not be able to make a profit.
Then why do I say: If at the same level of IQ, EQ is higher than IQ?
In foreign exchange trading, to be honest, each of us has a high IQ, otherwise we would have already left this market. According to statistics, if we extend the time, even a top foreign exchange trader, in fact, it is difficult for his winning rate to exceed 50%. Since we can't increase our winning rate infinitely, then we have to make up for it in terms of investment philosophy, psychological quality, and fund management, that is, emotional intelligence.
Finally, I would like to share with you a sentence I like very much. Any trading market will make people irritable, and it is easy to choke when chasing ups and downs frequently. Only a calm and calm personality is your greatest wealth, which cannot be bought with real money.
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