Forex Trading Basics – 5 Common Myths!

Forex Trading Basics - 5 Common Myths!

Successful currency trading looks easy, yet few succeed and 95% of all traders lose all their money and this is despite the fact that trading currencies successfully is a learned skill. The reason why so many traders lose is they believe conventional wisdom about successful trading but if you want to enjoy currency trading success don’t do what the majority do.

Let’s look at 5 commonly held beliefs about currency trading which the majority believe and by believing these myths, they end up in the majority of losers.

It’s Easy to Make Money!

95% of traders lose, so it’s pretty obvious that making money in FX trading is not easy. The rewards of currency trading are huge and you wouldn’t expect it to be easy to make money however the good news is – everything about successful currency trading can be learned by anyone and for the effort you have to make, the rewards are enormous. Most new traders however believe they can make money with no effort and believe the myth of making money on autopilot with a cheap Forex robot.

Trusting Sure Fire Forex Robots

There are a huge number of laughable Forex robots which promise financial freedom for a hundred dollars or so and no effort is needed on your part! Who wouldn’t want a lifetime income, for the cost of a night at the bar? It looks too good to be true and is and anyone who buys these systems, soon losses their money.

    Hard Work and Intelligence will Increase Your Odds of Trading Success

    You won’t increase the odds of success in FX trading by working hard, you’re only judged on the money you make and that doesn’t mean hard work, it means -working smart and learning the right information. Also, the best currency trading strategies are always simple and anyone can learn one of these. Being clever can be a disadvantage because, clever people make their strategies too complex and if a system is too complex, it will have too many elements to break.

    Believing Forex Markets can Be Predicted

    Buy low sell high goes the conventional wisdom and you need to predict where prices go in advance but this is yet another dangerous myth to believe. You can’t predict lows or highs in advance and while many traders like to follow far-out theories like – Gann, Elliot Wave, and Fibonacci which all say markets move to science and can be predicted they can’t. Currency trading is an odds game, so you should trade the reality of price change and not try to predict price moves in advance; if you do try, your predictions will be about as accurate as your horoscope!

    Market Timing is the Key to Success

    You don’t need to buy the exact low to make money, You simply need to follow market action – and wait for confirmation of a trend change. Of course, if you do this you will miss the exact low or high but that’s impossible to predict anyway so trade with the odds on your side and don’t worry about the little bit of profit you have missed, focus on the big profit ahead of you. Forex trading is not about perfection and buying the exact turn, it’s about making money and that means waiting for moves to be confirmed and trading the odds.

    Why You Can Win at Forex Trading

    From the above points, it’s obvious that you can win with a simple system, based upon trading price action which anyone can learn to do. If you want to become a Forex trader from home and make money, you can learn all you need to know in a few weeks and soon be making big profits in around 30 minutes a day.

    Leave a Reply

    Your email address will not be published. Required fields are marked *