5 Forex Market Myths
Like any other business, the forex market has its share of associated myths. These myths can affect any trader, experienced or novice. Therefore, knowing, avoiding, and clarifying these myths can save you from unnecessary frustrations.
Below, we have analyzed some of the most common myths about forex trading, which will be useful for those who are considering entering the world of currency pair trading.
Nº1 - Trading Forex is Easy
Nowadays open account at an international broker and start negotiating the purchase and sale of currencies it is in fact very fast and easy. More use a method and be able to profit is not. Most novice traders believe that with little information it is possible to take the first step, others think that acquiring a ready-made strategy through robots is the solution.
The truth is trade in this market can, in fact, become easy for someBut only when the investor masters the best tactics and trains a lot. Try to learn about indicators that really work, train and simulate the application of each of them in a demo account - virtual accounts offered by brokerages with virtual money - and discover how to control the risks.
A good strategy, used by the smartest novice traders, pass by use signals provided by experienced traders (such as SinaisForex.com). Not only use, but study the positions they provide and follow attentively results.
Once this is done, you will be prepared to carry out negotiations with relative ease. The greater your experience the better your result will be.
Nº2 - I will get rich overnight
Many people believe that they will get rich just by investing in the Forex market. However, building a fortune from trading depends on hard work, dedication and patience. With the exception of lottery winners or heirs of fortunes, there is no other way to get there in any type of business.
With this in mind, the story of getting rich overnight is, in fact, a myth.
also you have to lose to know how to win. I say this because many investors give up on the market as soon as something does not go as planned. This is the type of market (like many others) where only the most determined and persistent will succeed!
Effort, persistence and determination, as well as a willingness to learn and not be afraid of making mistakes are the keys to success!
Nº3 - Trading Forex is very risky
Like any business or investment, negotiate Forex is also risky. Winning or losing is part of the “game”. The important thing here is to take a measured and limited risk, always with good risk management: distribute the amounts invested intelligently and know where to allocate more or less capital.
Of course, each case is different. For example: better financial condition allows greater tolerance for loss; more delicate investments require a more conservative and attentive management, etc ... With that in mind, use leverage safely, analyze your situation and find out how to best proceed.
Focusing on knowledge and learning how to operate in these types of markets is a minimum requirement for any investor.
Nº4 - Forex is a Fraud
Some traders, who have already experienced one-time non-profitable transactions, believe that Forex is just an illusion and a waste of capital. A lot too it is due to some ill-intentioned international stockbrokers, which, by operating in an irregular manner, ended up attributing the same bad reputation to serious companies in the market.
You can trust that there are many reliable institutions for working with trading. The best and safest brokers are in the United Kingdom (London) and the United States (New York).
You can also trust without Copy Trade Forex or Auto-Trading Systems, as well as certain EA Forex. It is just a matter of doing research and trying to see the legitimacy of the provider of these services.
Therefore, it is 100% safe to open an account with a Forex broker. Some companies even have a website, investment platform, graphics and support in Portuguese. To learn more see our Recommended Brokers, in which we have placed our trust for many years.
Nº5 - It is only for those who have a lot of capital
It is not at all like you think, Forex is a very affordable investment. With about 100 € to 200 € or R $ 425 to 800 you can start trading. My tip is: start small and have a future goal to achieve financial freedom.
After all, investing is a smart way to create new profitability opportunities in your life.