5 Forex Currency Trading Myths
5 Forex Currency Trading Myths
5 Forex Currency Trading Myths
A lot of material has been written on Forex, and sadly, a lot of it is written by people who have never traded in their life. These authors couldn't tell resistance from support even if their life depended on it.
Nevertheless, they still write and populate various myths they've seen on internet, or heard from people who know people who traded currencies in the past.
I have collected top 5 myths of Forex trading.
You can make fantastic living from Forex, investing minimum amounts of money, because Forex is a multi trillion dollar market. Wrong. While it indeed is a multi trillion dollar market, make no mistake - if you start small and don't control your risk, this market will eat you alive and won't even notice. Instead, you should focus on preserving your capital while working out the details of trading on Forex.
There's a secret strategy that will make you incredibly rich overnight. Wrong. While you need a strategy, and there are a lot of good and bad ones around, trust me when I say that there's no magic bullet. You should test every strategy real time on your demo account to make sure it fits your risk profile and trading habits, and then implement it on your real account. But no strategy ever will be 100% correct all the time, and that's why you must control your risk at all times.
95% of people lose money on Forex, and if you don't buy our product "X", you will be among them. Wrong. I don't even know who came up with that number, since I have yet to see a real statistical research about this. True, a lot of people lose money due to their greediness and impatience, but to tell you the truth, Forex isn't that difficult either. And one more thing - there are a lot of fake promises out there, always do your due diligence before you shell out your money for another Forex product. However don't be overly afraid either - there are a lot of genuine advice both paid and free around. Just research before you buy.
Trading is all about your mental state. Wrong. While trading psychology is extremely important, no mental state in the world will help you if you cannot tell your support from your resistance. While it is possible to make money with nothing but trendlines and mental stability, in such case, you have to know your trendlines really good. Bottom line - mental state is all good, but always learn your tools too.
You can always earn money on Forex, because it is a huge market that is open 24h a day. Wrong. While it indeed is a huge market and all that, a lot of times market is just going sideways, and you better know the difference, because sideway markets kill accounts. Plain and simple. So, first you must wait for a trading condition according to your system, and then enter market. Never ever enter market if you don't know why you should do it.
These are 5 most popular myths I've came across recently. There are a lot more of them around though, so be careful, always do your research, test your ideas on demo, and you will be profitable in Forex.
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