A lot of individuals delve into the trading world with the misconception that there is a highly positive correlation between intelligence and trading success. It is nothing short of an axiom that trading is a very intricate profession- a mystery that can only be unraveled on complete analysis. In addition, the grandiloquent terms associated with trading, especially in its fundamental aspect, such as quantitative easing, intervention, down grade, inflation, Gross domestic product, demand and supply, etc, help to bolster the above thesis.

Yes, a trader needs to be mentally alert in order to successfully analyze currency pairs; however, success in trading requires a whole lot more. It is important to note that individuals who have attained “financial maturity” tend to be more successful in the art of trading.  

Financially mature traders are the wise ones that recognize the worth of their equity. They understand the effects of loss and profit on their capital; therefore, they put all aspects of trading into perspective. As a result, they pay close attention to key aspects of trading such as risk management, money management, and psychology. With this type of approach, they stand the chance of growing their equity in the long run.

Being intelligent is a very nice quality in that it can fasten the learning curve of a trader. Nevertheless, most smart individuals that I have come across in this field just have ample skill in fundamental and technical analysis, but lack solid trading results. Why? It is most likely because their intelligence has a negative effect on them, thus exposing bad trading habits which finally lead to their failure.

For example, such traders believe that they have what it takes to tame the markets. As a result, they become overly confident in their trade calls, increase their risk which, in turn, will trigger a cascade of negative trading habits that will eventually lead to their failure.

Successful trading requires a balanced proportion of intelligence and financial maturity.  It requires a trader to put all aspects of trading into consideration before thinking of placing a trade. A trader needs to demonstrate their analytical prowess, and also take caution of the probability associated with trading. This implies that you can be a nerd but still find it difficult to make consistent profits from the market especially if you are ignoring certain crucial parts of the art. Become a genius by learning from other peoples mistakes.
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