The Forex trading platforms has been around for some time and this has let to a lot of people formulating some more or less correct assumptions about the whole process. The following is a list of the most commonly known things that are not actually truthful. I suggest you to read excellent article about Top Ten Trading Psychology Myths as well.
1. Anyone can trade and it is simply. It’s true that anyone can get the platform and the information but creating profitable trades take a lot of time and skill.
2. I’m a successful stocks trader, therefore I will succeed with Forex. Again a false statement because this two markets are different.You need to be nimble for forex trading.
3. Since the market is open 24 hours per day I will earn money non stop . You can not be in every trade position all the time.The best forex traders wait for the best moment and then enter into trade.Trader sometimes lose and sometimes win.
4. If I follow other trader I will make profit. You’d better rely on your own knowledge.There are a lot of forex signal providers but just few of them is good.
5. I know broker which offers zero spread and no commission. False, because the spread fee is actually a masked commission in itself. Each forex broker earns money using spread value. Evan ECN brokers will take you fee per each transaction.
6. Forex is nothing but a scam. The fact is that there are a number of individuals who can be accused of scamming but this doesn’t go as true to the overall market. The platform in itself is secure and very transparent and most of all, legal. Most Forex brokers are regulated.
7. Predictions have to be very accurate for a successful Forex investment. The truth is that the monetary system cannot be predicted. Forex traders do not predict future – they make analysis and wait for right moment to trade.
8. Strategies have to be very efficient to produce income. It is somehow true a lot of experience will yield better result but on the long run successful Forex traders use their intuition and experience rather than a fixed set of skilled assumptions. No single strategy will work for sure without analysis.
9. A lot of capital is needed to get into the market. It’s true that the larger the amount investment the larger the sums that you can expect to gain. Sums as low as a few dollars will allow you to make an account so, definitely a large amount is not necessary but desirable.
10. The Forex market is rather a game and not a legitimate market. Depending on your number of previous transactions and experience you will notice that the investments will generate profit but also some losses sometimes. IF you lose you need to learn and practice.Forex is legitimate market.