Forex trading has become popular in such that it is has become a common thing such that people have their own myths and memes about Forex Trading and the The Market Place itself. the Forex market is the biggest market in the world with a daily turnover of 5.7 Trillion and still expected to increase in the upcoming years as more investors are getting in.
as any other Market, there are market related myths and memes people get to develop and believe in when its comes to trading and in this article you will learn the truth about Forex and the beliefs involved in trading.
as any other Market, there are market related myths and memes people get to develop and believe in when its comes to trading and in this article you will learn the truth about Forex and the beliefs involved in trading.
Know Economics or Finance to Master Forex Trading
Most Traders think that you should have a an Economics Degree in order for one to understand the markets and to be able to trade, this has become a popular myth as the markets is very much affected by economic events happening around the world.
having a pretty good knowledge in world economics can be very helpful to a trader but its not crucial for a trader to know economics as trading can be done with a lot more of strategies that will not need any economics knowledge.
Forex is Easy
Thats the mindset of everyone who gets in the markets, everyone comes in with a mindset of making some easy quick bucks from the markets, traders tend to think they will read a PDF with a golden strategy but thats not the case.
one has to invest in proper Forex trading knowledge in order to be able to grow in the trading business, people who come with a mindset of finding an easy way to make money usually get to lose big, invest in your trading education.
You Get Rich Quicker
The get richer quicker has become a popular myth in if Forex Trading as more traders get into the market place with the hope of getting richer quicker. this myth is true but only if the the trader understands what they are doing and possesses a certain degree of trading experience in the markets.
Recommended Article: The Reasons Why A Majority Of Traders Fail
You need a lot of Money in order to Trade Forex
Getting to trade the was pretty much expensive, Forex Trading was only available to the super rich individuals and Institutions as trading the market required on to have a $1,000,000 starting capital to be able to trade the financial markets. the retail traders did not have access to the market until the technology was improved giving more room to trade the financial markets with almost any amount of money starting from only $5.
You Must Trade Everyday to Make More Money
New traders believe that trading daily or having to sit in front of the computer is the best way of making money in the markets, they believe that successful traders sit in offices where they face a lot of screens all day while trading the markets. in general truth thats not so true, Forex is pretty much a very relaxed job that one can do full time or spare time.
Trading everyday is not a very good option as traders as the markets vary on daily basis which can open a trader to a lot of potential risks in the market place. Successful traders do not trade everyday and they do not sit on the computer screen all day but instead they invest their time in finding good trade setups and they execute few trades compared to the retail traders.
A Big leverage is better
Leverage controls how much much volume a trader can trade on their trading accounts, lower leverage can only allow small gains and small profits, the bigger the leverage in the account the bigger is the Risk and Reward on the trading account which can make more money and might also lose.
A very high leverage can increase the number of chances for a trading account to blow, the use of very high leverage is not good for a trading account because its increases the chances of losing in the market place.
The Markets move Randomly
They myth of the markets moving in a Rigid or Random manner has become very popular to people who think they understand the market, the market is not moving randomly but follows a series of patterns and Institutional order.
Forex Trading Is Similar to Gambling or Casino
Forex has been much known as gambling by a majority of people as this myth has been very common to people who dont know much about Forex trading, Forex trading is a skill whereby the person who knows to trade properly has always make money and the person who doesn't invest in learning it will come with a mindset of luck and will lose money.
Forex Trading is a business and should be taken with special care and remember as a trader not to follows a lot of negative myths that people think about Forex trading.
having a pretty good knowledge in world economics can be very helpful to a trader but its not crucial for a trader to know economics as trading can be done with a lot more of strategies that will not need any economics knowledge.
Forex is Easy
Thats the mindset of everyone who gets in the markets, everyone comes in with a mindset of making some easy quick bucks from the markets, traders tend to think they will read a PDF with a golden strategy but thats not the case.
one has to invest in proper Forex trading knowledge in order to be able to grow in the trading business, people who come with a mindset of finding an easy way to make money usually get to lose big, invest in your trading education.
You Get Rich Quicker
The get richer quicker has become a popular myth in if Forex Trading as more traders get into the market place with the hope of getting richer quicker. this myth is true but only if the the trader understands what they are doing and possesses a certain degree of trading experience in the markets.
Recommended Article: The Reasons Why A Majority Of Traders Fail
You need a lot of Money in order to Trade Forex
Getting to trade the was pretty much expensive, Forex Trading was only available to the super rich individuals and Institutions as trading the market required on to have a $1,000,000 starting capital to be able to trade the financial markets. the retail traders did not have access to the market until the technology was improved giving more room to trade the financial markets with almost any amount of money starting from only $5.
You Must Trade Everyday to Make More Money
New traders believe that trading daily or having to sit in front of the computer is the best way of making money in the markets, they believe that successful traders sit in offices where they face a lot of screens all day while trading the markets. in general truth thats not so true, Forex is pretty much a very relaxed job that one can do full time or spare time.
Trading everyday is not a very good option as traders as the markets vary on daily basis which can open a trader to a lot of potential risks in the market place. Successful traders do not trade everyday and they do not sit on the computer screen all day but instead they invest their time in finding good trade setups and they execute few trades compared to the retail traders.
A Big leverage is better
Leverage controls how much much volume a trader can trade on their trading accounts, lower leverage can only allow small gains and small profits, the bigger the leverage in the account the bigger is the Risk and Reward on the trading account which can make more money and might also lose.
A very high leverage can increase the number of chances for a trading account to blow, the use of very high leverage is not good for a trading account because its increases the chances of losing in the market place.
The Markets move Randomly
They myth of the markets moving in a Rigid or Random manner has become very popular to people who think they understand the market, the market is not moving randomly but follows a series of patterns and Institutional order.
Forex Trading Is Similar to Gambling or Casino
Forex has been much known as gambling by a majority of people as this myth has been very common to people who dont know much about Forex trading, Forex trading is a skill whereby the person who knows to trade properly has always make money and the person who doesn't invest in learning it will come with a mindset of luck and will lose money.
Forex Trading is a business and should be taken with special care and remember as a trader not to follows a lot of negative myths that people think about Forex trading.
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