Seven Myths about Forex

FXOpen

a calculator and a pen with FXOpen logo

Seven Myths about Forex

It’s hardly possible to find a person that has never heard of the Forex market, as FX-related advertising has literally seized nearly all the information channels. This sort of invasion has surely triggered a great response from the audience, resulting in spreading myths among both potential traders and those, who have already taken up this business. The present article is targeted at breaking the most common stereotypes and prejudices around the Forex trading.

Myth 1: Forex is scam.

Hundreds of people strive to plunge into the Forex environment after being promised mountains and marvels just within a few days or weeks. Naturally, unlucky fellows get disappointed at having failed to make a fortune. So, they start blaming the entire world in their bad luck, including Internet, brokers, big daddies but not themselves.

Myth 2: Forex – is it a casino?

People, prone to gambling, associate Forex with a sort of casino. On hearing the word “bid” those crazy gamblers get hooked by a desire to “bet” their money aspiring to make huge profit. If taken apart, Forex surely provides certain risk, thrills and chills, which eventually lead to sizable losses. But, basically, Forex is a hard job, not a game.

Myth 3: One should be an expert in economics to succeed in Forex.

As practice shows it’s not by far the main criterion for a trader’s success. Real achievements are made by those, who spend hours on end analyzing charts, testing different trading strategies and making deals, rather than those, who have deep knowledge in this sphere, but lack any experience. Even a single indicator is enough to secure the normal flow of trading. It definitely proves that it’s not an education that helps to yield income at Forex in the first place. The success in trading depends on your ability to build up your own unique strategy.

Myth 4: Trading efficiency is achieved through neglect of personal life.

Forex is distinguished by its 24/5 availability. You are free to regulate the frequency of trading and the time for making a deal due to the timeframe system. What is more, there’s no need to keep an eye on charts round the clock. You can hit the jackpot within a single minute. Just compare the profit of a scalper and a long-run trader and you’ll see no huge difference.

Myth 5: A good deal of traders incur losses through brokers’ “scheming”

According to statistics, 80% of accounts appear to be failing. What is the reason? Such problem may be caused by the PR campaign, selling the idea of easy money that could be made without prior experience in e-trading and good understanding of the market mechanisms.

Myth 6: Investments are associated with high risks.

Actually, it’s typical of any business. Only 15% of companies follow a “prosperity” scenario from the very start. It reminds a trading account lifecycle – the percentage is very much alike. The risk will be justified if the investments are wisely managed. You will anyway make higher profit by trading at Forex than by depositing your funds in a bank.

Myth 7: Make money – piece of cake!

It’s the most frequent delusion, haunting lucky newbies. Being new to Forex, but having made some progress, they do believe they are inborn profs, possessing a rare gift called intuition. However, they are doomed to failure unless change their views.

Myths originate from ignorance. It’s always worth double-checking before getting down to business. But one thing is obvious – only hard work makes your way to success.

Source: digitalcashpalace.com

 

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Market Insights

Fed Signals Tapering Is Just Around the Corner FX Markets Prepare for the Jackson Hole Symposium Jobs Data in the United States - Why It Matters for the Retail Trader Financial Wars in 21st Century Oil and CAD Correlation Explained

Latest articles

Commodities

Brent Crude Oil Price Hits Highest Since 1 May

As the chart shows, yesterday the price of Brent crude oil rose to $84.40, which is the highest level since 1 May 2024.

The demand for Brent crude oil was driven by the following factors:

1. The holiday season

Shares

Nvidia Becomes World's Most Valuable Company

According to the NVDA chart today, the share price rose yesterday to a new all-time high, surpassing $135 (after a 10-to-1 split). This pushed Nvidia's market capitalisation to $3.34 trillion, overtaking Microsoft, which is currently valued at $3.32

Forex Analysis

Market Analysis: AUD/USD and NZD/USD Sight Steady Increase

AUD/USD is attempting a recovery wave from 0.6590. NZD/USD could gain bullish momentum if there is a clear move above the 0.6150 resistance.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

· The Aussie Dollar

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.