Top 5 Myths about Forex Trading
Forex is a market that allows you to make money by buying currencies low and selling them high. But perhaps you already know what Forex trading is. The Internet is full of information about Forex, but not everything you read is true.
There are many myths concerning the Forex market, and here are some of the most popular ones:
1. Forex trading is easy
Many people think that Forex trading is very easy — you need to read a couple of books, think of a good strategy — and you’re rich. But, of course, this assumption is far from being true. Forex trading is like a profession, and you’ll need a lot of time, effort and practice to master it.
2. Forex trading is like gambling
Some people think Forex trading is like gambling — you never know if you’ll succeed since everything is completely random. But, of course, in Forex, just like in any other financial market, you can’t be sure of anything in advance. Yet this doesn’t mean your success or failure is entirely random. As said above, many things in Forex depend on your efforts and skills, and luck isn’t that important here.
3. A difficult strategy is needed for success in Forex trading
The more complex the strategy — the better chances to succeed, some people think. It’s just a myth, of course. Success in Forex trading doesn’t usually depend on your strategy; after all, many successful traders use an ancient, almost primitive strategy. So, your traits, your self-discipline, and your management abilities are far more important than the strategy you choose.
4. Big investment is needed for success in Forex
There is a common misconception that one can’t succeed and profit in Forex trading if he doesn’t have a lot of starting capital. The truth is that lots of money won’t help you when starting. Just get educated and start with what you have.
5. Forex is a scam
This is one of the most common myths, and all those who failed once or got disappointed hurry to claim that Forex is a scam and all the traders are cheaters.
Of course, just like in any other field, there are many scams in this field, too, but this doesn’t mean the Forex trading itself is a scam. So be careful. If you don’t want to be cheated, choose reliable brokers and account managers and work only with those companies that have a widely known name and can be trusted.
These were some of the most common myths concerning Forex trading. So be careful and don’t think you can quickly become wealthy with the help of Forex trading. On the other hand, don’t think the Forex market is something to be afraid of, either. Just be rational and sensible – these traits will help you not only in Forex trading but also in all other life aspects.