Forex is the most popular and largest foreign exchange market on the planet. The realities are such that with a responsible approach to business, a trader almost always achieves visible success in this field. Moreover, the most stubborn hard workers begin to trade on a professional basis.
The content of the article:
- Forex myths and reality
- Myth 1: Forex trading is extremely easy
- Myth 2: the foreign exchange market is the most common scam
- Myth 3: Forex is no different from a casino
- Myth 4: any Forex earnings are accidental
- Myth 5: only the rich can trade Forex
Forex myths and reality
In fairness, it should be noted that the number of “burned out” is also quite large. At the same time, it does not matter at all what caused such an unfortunate failure.
Any failures in Forex invariably gather around them a lot of myths, misconceptions and legends. In this article, we will dispel the most popular ones. So let s get started.
Myth 1: Forex trading is extremely easy
If we consider the actions performed by the trader from a purely technical point of view, then we can come to the conclusion that there really is nothing complicated in them. Everyone can cope with installing a trading platform and choosing a strategy, but making it right is not so easy anymore…
Rememberthat a trader must be able to predict the direction of price movement, study the market and profit from it.
To comprehend all the basics of Forex trading, you need to spend a lot of time learning. There are no easy ways. If someone tells you that trading in the foreign exchange market is as easy as shelling pears, then he is lying!
Myth 2: the foreign exchange market is the most common scam
This opinion may be shared by inexperienced traders who have bought into the sweet tricks of scammers. Often, such people (or organizations) take advantage of the ignorance of newcomers and offer them win-win signals, strategies, secret schemes, etc.
To get what you want, you just need to replenish a deposit with a dishonest broker. After money find themselves in the hands of scammers, the connection with the client is cut off
It is because of such annoying cases that people get a fundamentally wrong impression of the foreign exchange market.
Myth 3: forex is no different from a casino
If this statement were true, then success in Forex would be too dependent on capricious fortune. In other words, almost everyone could be successful.
In reality, everything is completely different. Professional traders earn money steadily, and the “players” steadily lose it… If you don t have a clear strategy, then you are doomed to fail. It s too presumptuous to hope for good luck in the long run.
Myth 4: any earnings on Forex are random
Another naive delusion. Remember that Forex has nothing to do with randomness.
For exampleif you pay attention to short-term currency fluctuations, you might really think that they are chaotic.
But if you carry out observations for more than one day, then your opinion will change dramatically – even a very insignificant deviation will be of a logical nature – it will be associated either with external facts or with direct price movement.
Any changes in the foreign exchange market are in close contact with the world economy – there is no place for any accidents.
Myth 5: only the rich can trade Forex
Of course, if you have an impressive start-up capital, then it will be much easier for you to start trading. However, its success will entirely depend on your skills.
A large deposit in itself does not mean anything, as you can quickly lose it.
The main thing is not the size of the initial capital, but your knowledge… If they are available, even a very modest deposit can be multiplied many times over.
Now you have a much better understanding of the foreign exchange market, because you can distinguish between false and true. Don t blindly believe myths. In any situation, think with your head first.