The Forex trading myth
As you begin your journey into forex trading, one of the first things to note is the various forex trading myths that have arisen over time. Some of them came as a result of the early happenings in the forex market before online forex trading came into existence. Others are from amplification of some instances that in no way represents what the forex market stands for. Also, some misconceptions have arisen due to misinterpretation of some basic forex principles and methodologies within the circle of less-educated traders and investors.
In this piece, we aim to demystify some of these forex trading myths that have become popular over the years, especially for beginner retail traders who haven’t gained enough academic or professional experience. So, let’s get to it.
Forex Trading Is an Easy Money-Making Scheme
Among all the forex trading myths, this happens to be the most popular. A lot of newbies have the impression that forex is a “get-rich-quick” scheme. This has resulted in their improper preparation before venturing into trading. A large percentage of them fail to get the basic knowledge of forex trading since their focus is on getting some quick cash rather than learning. However, success in the market is first achieved through education, which takes some time and experience to grasp. The forex business requires serious planning, learning, patience, hard work, and discipline. Therefore, anyone who sees forex as a fast and easy way to make money from the start will head for the rocks.
The System Is Rigged
When a trader experiences consistent loss, he believes that the broker is corrupt, and the market is manipulated. Although that assumption is easy to make, it is untrue. The forex market is the largest financial market in the world, and millions of transactions are carried out on the platform each day. Therefore, any individual that takes a non-businesslike approach is bound to record losses. That is precisely the way every business is fashioned. This means that while you are taking a wrong approach to your forex business, another well-prepared individual makes more money from your mistakes.
You Can Get Every Trade Right
No doubt, the forex trading will challenge your ego, which is your unconscious desire to get things right always. Most traders become obsessed with the need to be right always, and some go as far as taking trades to enjoy the thrill of getting the right prediction. However, if you want to be a successful trader, this is among the forex trading myths you must never play along with. The truth is, losses are common, and the market is bound to go against your analysis at some point. So, you must accept this and learn from every loss you record; that way, you become a better trader.
While the forex market offers a lot of advantages, you need to position yourself to be able to tap into them. This means you need to be knowledgeable at all fronts. As much as you can, invest in gaining the required knowledge as this makes you unsusceptible to believing the numerous forex trading myths that exist.