Newbies or traders who are inexperienced in forex or people who have never tried to trade forex are the ones who make the most misconceptions about forex trading.
Here we list 10 myths about this field, where you are also responsible for correcting this myth to others because the reality of forex trading is not as people out there think.
1) Get Rich Quick
This is nothing but advertising in the forex industry. Advertising that says "you can make money easily with forex blah blah blah" and all sorts of other things infused with luxury and wealth. This is completely wrong. Forex trading requires patience and the search for knowledge that never ends. If you believe this forex can make you get rich quick, and feel the difficulty when you really have entered this forex arena. But it can be easier if you get the right mentor.
2) Forex For Short Term Trade Only
Big leverage has made scalping traders more and more popular nowadays, but it is not a way we should prioritize. It should be noted, the long-term trend of the currency is heavily influenced by fundamental factors and we can trade this long trend. Long-term traders such as "swinger and position traders" are often calmer where they do not need to monitor charts regularly and reduce the risk of heart disease for older traders.
3) Fraudster's Forex Market!
As usual, we always hear this statement from traders who always lose. Worse yet they blame the brokers who caused their losses. It is not fair because of your own weakness, you blame others. The forex market is one of the largest financial markets in the world, and it is influenced by many factors. Every day billions to trillions of money move in the forex market due to trading, investment transactions, tourism— therefore, as traders we have to do forex trading like a business. Nothing is easy, it is a high-risk market and you must also analyze like a professional.
4) Forex is a Scam!
Hahaha. This is the funniest. Remember the news of VenusFx, GWGFX, FxUnited, and other scam programs that cause losses of up to USD80-100 million. Actually, it is not forex that is a scam, but these people (scammer) who tarnish the name of forex. They created a get rich quick scheme using the name forex. They are not trading. This is actually your own fault if you are scammed in the name of forex because there is nothing as easy as making money as rocking a leg at home. Often the scammer will say "make money as easy as ABC, by sitting quietly shaking legs and all sorts of other things".
5) Can Profit All The Time
Although there is a technical set-up taught by forex mentor as a set-up that is definitely profitable. Do not believe this, nothing is certain in forex. You can only reduce the risk of loss in this area with a potentially profitable technical set-up instead of definitely profitable. If you also believe in this ‘definitely profitable’ thing, it will only end with the search for techniques that are “Definitely Profitable” (holy-grail) throughout your life that actually do not exist.
6) Can Profit Easily Trade News Time
Usually, the rapid movement after a high impact News report such as NFP news can cause you to say in your heart, "can make a lot of profit". In fact, this trade news is difficult, because of its rapid movement at the time the news report is released unless you make a complete analysis in terms of technical and fundamental factors.
7) More Trade, More Good
You definitely think, if trading once a day can make a profit, it means that trading 10 times a day can maximize profits. Try first, then know how difficult it is to consistently make a profit. The fact is, we need to minimize trade and focus on only a few currency pairs that we understand, it is more fruitful. Unless you are an experienced trader and focus on scalping techniques.
8) The More Complex The Technique, The More Power
Traders often start with ‘simple’ techniques and get small results. Therefore, they consider that if the ‘simple’ technique was added with indicators and more factors, they can increase the profit. It does not always happen like this. Instead of focusing on adding indicators, you should focus on the ‘simple technique’ and pay attention to the ‘fundamentals’ and ‘risk management’. It is better.
9) Forex Can Be Controlled In A Short Time
Haha. There is nothing easy in this world. Again stressed, try first to find out. It should be the beginning of the first year or so, used to seek knowledge and practice with the next demo account starting with the minimum capital real account. This is the best, to make sure you really are
