MBG Markets-In foreign exchange transactionsIQAndEQ

For many of usforeign exchangeFor traders, whether emotional intelligence or intelligence is important, I think everyone has their own judgment in their hearts. But in my opinion, for usForeign exchange transactionsAs for individuals, IQ determines whether their views on a market trend are correct, while emotional intelligence determines whether they are making money in a market trend.

Why do you say that? I don't know if everyone has this situation. Originally, they had a very accurate view of a certain market trend, but in the actual trading process, they couldn't make a lot of money, either because their positions were too low or they were eliminated early, and they couldn't make the profit they wanted.

Next, let's talk about emotional intelligence and intelligence in the process of foreign exchange trading.

Of course, first of all, you need to understand what emotional intelligence and intelligence are?

Intelligence quotient, which refers to a person's level of intellectual development, is usually expressed in terms of intelligence quotient, abbreviated as IQ in EnglishIQ. IQ reflects a person's cognitive ability, thinking ability, language ability, observation ability, computational ability, and rhythmic ability. That is to say, it mainly reflects human rational ability.

Emotional intelligence, which refers to the ability to recognize and manage one's emotions and handle interpersonal relationships, is usually expressed in emotional quotient, abbreviated as EQ in EnglishEQ. Emotional intelligence reflects a person's ability to feel, understand, apply, express, control, and regulate their emotions, as well as their ability to handle emotional relationships with others. It mainly reflects the individual's ability to grasp and handle emotional issues.

In short, intelligence is a prerequisite, emotional intelligence is a guarantee, and the relationship between the two is complementary and indispensable. Compared to the two, emotional intelligence is more important than intelligence.

Once everyone has the concept of emotional intelligence and intelligence, it will be easier for us to understand how they affect our transactions.

In the process of foreign exchange trading, the analysis of fundamental and technical aspects, as well as the interpretation of data and intelligence, are closely related. They determine whether your interpretation of the market is close to the market and in line with market rules. In other words, 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 ever-changing market.

When it comes to which one is more important for our foreign exchange trading, I believe that intelligence and emotional intelligence are equally important and complement each other. If at the same level of IQ, emotional intelligence should be higher than IQ, because it determines how much profit you make.

Imagine an investor with high intelligence who, through thorough basic and technical analysis, has a clear understanding of the development trend of the market, but is indecisive and indecisive in practical operations. When holding positions, their mentality is unstable, and when the exchange rate rises, they become greedy, while when the exchange rate falls, they panic. How can we profit from this? Similarly, if a person has high emotional intelligence and misjudges the direction of the foreign exchange market, even if their mindset and fund management are done well, they cannot make a profit.

So why do I say again: if at the same level of intelligence, emotional intelligence should be higher than intelligence?

To be honest, when it comes to foreign exchange trading, each of us has a high IQ, otherwise we would have already left this market. According to statistics, if we extend the time, even top foreign exchange traders find it difficult to surpass their winning rate50%. Since we cannot increase our winning rate infinitely, we need to make up for it in terms of investment philosophy, psychological quality, and fund management, which is emotional intelligence.

Finally, I would like to share with you a sentence that I really like. Any trading market can make people impatient, and frequent chasing up and down can easily lead to choking water. Only a calm and calm personality is your greatest wealth, which cannot be bought by real gold or silver.