The Biggest Myths Forex Traders Believe And Lose
In this article we will look at Forex myths which traders believe and experience losses. If you want to get wins, do not believe in the following 5 myths:
1. Forex Trading is Easy
Many traders are inexperienced and think that they can open an account and make money easily. They stick to a good system that they bought for $100 and think that they can win but since 95% of forex traders lose, you should understand that this is true.
2. Forex Scalping and Day Trading is a Way to Earn Money
Day traders lose always. This is due to the fact that all volatility in short time frames is accidental. You can not trade a random market and win.
3. Forex Robots Work
Financial freedom for $100! If you believe this story, look how it is in reality. The Forex expert Advisors lose often. These robots do not have long term track records of real wins and if you think that they will make money, you are shocked.
4. Forecasting Forex Prices in Advance is Possible
You can not forecast what thousands of people will do to a price for sure, so do not try. Just trade the reality of price change and leave those forecasts to the dreamers and losers.
5. Markets Move to Mathematics
Related to the previous point and as long as I have been trading, I see people who state they have discovered the hidden order of the market and then they vanish. In fact Forex markets are markets of probabilities and not certainties.
You just nee to focus on trading the odds and win having forgotten about perfection.
6. You Are Rewarded for Hard Work
It is not a 9 – 5 job and you do not get a salary, you are rewarded for being right and should work smart and hard.
7. You Get Rewards for Being Clever
Forex is a market where it is better to use simple systems. Complicated strategies have more elements to break.
8. You can trade breaking news stories
Traders track the news and watch how the markets move. Also, bear in mind all financial markets discount news right away. Do not trade news stories if you do not want to lose.
9. You should be on top of market actions 24 hours a day
You should track prices maybe once or twice a day and it’s true. You attain nothing by tracking the market.
10. Risk Reward is Simply Your Target – Your Stop
It is how traders delve themselves into thinking, they have a high reward low risk trade – but it is no more than an option and does not take into consideration the probability of the trade.
Avoid the above Myths!
If you want to get more wins find a simple trading system based upon trading the reality of value change, learn to use it in a disciplined manner and confidence that you can enjoy your trading success.
Due to hard times in the world economy Foreign Exchange market is a very popular way of making money. Those who are looking for productive strategy, might be interested in managed forex accounts. But please make sure to read about forex trading scams before going into forex trading.
It is a must to read unbiased reviews to decide “is forex trading a scam?” before you invest money into trading activity. This is important, don’t forget that we are living in the world where info quickly enhances the quality of our life.
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