Seven Myths about Forex
It’s hardly possible to find a person that has never heard of the Forex market, as FX-related advertising has literally seized nearly all the information channels. This sort of invasion has surely triggered a great response from the audience, resulting in spreading myths among both potential traders and those, who have already taken up this business. The present article is targeted at breaking the most common stereotypes and prejudices around the Forex trading.
Myth 1: Forex is scam.
Hundreds of people strive to plunge into the Forex environment after being promised mountains and marvels just within a few days or weeks. Naturally, unlucky fellows get disappointed at having failed to make a fortune. So, they start blaming the entire world in their bad luck, including Internet, brokers, big daddies but not themselves.
Myth 2: Forex – is it a casino?
People, prone to gambling, associate Forex with a sort of casino. On hearing the word “bid” those crazy gamblers get hooked by a desire to “bet” their money aspiring to make huge profit. If taken apart, Forex surely provides certain risk, thrills and chills, which eventually lead to sizable losses. But, basically, Forex is a hard job, not a game.
Myth 3: One should be an expert in economics to succeed in Forex.
As practice shows it’s not by far the main criterion for a trader’s success. Real achievements are made by those, who spend hours on end analyzing charts, testing different trading strategies and making deals, rather than those, who have deep knowledge in this sphere, but lack any experience. Even a single indicator is enough to secure the normal flow of trading. It definitely proves that it’s not an education that helps to yield income at Forex in the first place. The success in trading depends on your ability to build up your own unique strategy.
Myth 4: Trading efficiency is achieved through neglect of personal life.
Forex is distinguished by its 24/5 availability. You are free to regulate the frequency of trading and the time for making a deal due to the timeframe system. What is more, there’s no need to keep an eye on charts round the clock. You can hit the jackpot within a single minute. Just compare the profit of a scalper and a long-run trader and you’ll see no huge difference.
Myth 5: A good deal of traders incur losses through brokers’ “scheming”
According to statistics, 80% of accounts appear to be failing. What is the reason? Such problem may be caused by the PR campaign, selling the idea of easy money that could be made without prior experience in e-trading and good understanding of the market mechanisms.
Myth 6: Investments are associated with high risks.
Actually, it’s typical of any business. Only 15% of companies follow a “prosperity” scenario from the very start. It reminds a trading account lifecycle – the percentage is very much alike. The risk will be justified if the investments are wisely managed. You will anyway make higher profit by trading at Forex than by depositing your funds in a bank.
Myth 7: Make money – piece of cake!
It’s the most frequent delusion, haunting lucky newbies. Being new to Forex, but having made some progress, they do believe they are inborn profs, possessing a rare gift called intuition. However, they are doomed to failure unless change their views.
Myths originate from ignorance. It’s always worth double-checking before getting down to business. But one thing is obvious – only hard work makes your way to success.