Biggest Forex Trading Myths The exceptional yields of the forex trading with a minimum investment of money make it incredibly appealing. The new and inexperienced forex traders, without much of a stretch, can be recognized at whatever point they are found in the trading markets, playing out their trades. Vast numbers of these dealers more likely than not taken thorough instructional courses and workshops to clear their forex trading concepts or misconceptions. When trading is dealt with as a business, it can help you in reaping tremendous rewards and advantages.

Much the same as some other business, there are a few myths identified with the forex trading. These myths can create a wrong and unnecessary sense of fear, greed, pride, and excitement in the forex trader’s mind. Therefore, a comprehensive knowledge of these myths will help you in keeping yourself safe from these permanent psychological imprints and will even save you a lot of money.

 

Forex is a quick way to get rich.

This is one of the most common myths circulating. A forex trader can either trade for a short term or long term. Due to the 24 hours availability of the market, many traders think that if they get into forex trading, they will instantaneously get rich in a brief period. Although forex trading has many advantages, it doesn’t mean that you will get rich in a very short period. Successful traders focus on long-term trades, and they are in it for the long haul.

 

Forex is suitable for short-term trading only 

This is another myth circulating in the forex market. Rather than thinking of it as just a trade, the traders should consider it as a business. A trader should not make up their mind that forex market is only suitable for short-term trading. On the contrary, long-term trades are less risky and yield huge profits. In any of the financial market, the trends tend to follow a direction for a more extended period. The patterns following a path for a shorter period are always short lived.

 

Forex Market is Rigged 

Lack of regulatory authority for a forex market initiated the myth that forex markets are rigged. Forex trading is even considered as a scam by many people. This is definitely not true. Forex market is a vast market which is very competitive. There might be some scams run by the brokers in their capacity, but on the whole, a forex market is 100% legit.

 

Trading with 100% accuracy is possible.

This myth doesn’t even have any basis. Even the best in the business cannot predict with 100% accuracy. So is the case with forex market, i.e., none of the predictions can be made with 100% accuracy. There always is a margin of error which should always be kept in mind while conducting your trades. According to researchers, accuracy above 70% is hard to achieve.

 

Complex Strategies work better than Simple Strategies.

This is another outrageous myth. The traders think that the more complex a strategy is more fruitful the outcome will be. On the contrary, more straightforward procedure yield better results. The success of the approach depends on the trade that you are about to make. Any trading strategy, whether simple or complex, will fail if it doesn’t have all the necessary ingredients. But if you include too many rules in your strategy, it will give you a lesser number of signals and will also be inflexible.

 

You can make money by following others signals and advice.

You can use others experiences to learn and grow, but you can never use other signals and advice to make your trade. Therefore, a trader needs to train his mind to follow his strategies and make trading decisions based on educated guesses and calculated risks. Since it is your money that you are investing, therefore the decisions should be based on your strategies and your indicators rather than on someone else’s speculations of advice.

 

Biggest Forex Trading Myths Forex Trading is Easy

This is one of the biggest myths resulting in enormous losses for the forex traders. Forex trading requires exceptional analytical skills, money management techniques and quick decision making and a very disciplined approach. Without all the skills as mentioned above, it will be complicated for a forex trader to survive in the forex market. These skills help you in predicting the movement of the market and forecast the trades accordingly.

 

Conclusion

These myths of the forex market will help you in taking more vigilant decisions. These myths can easily confuse a forex trader and will force him into making mistakes that can result in massive losses. Therefore, if you want to be a successful forex trader, keep yourself away from these myths.

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