Myths About Forex Trading
Due to so much online news, and currency trading information available, it’s no wonder that there’s so much myths about trading the forex. I have bad news for you: the myths don’t actually exist, period.
I’ll start with the number one myth: that forex trading is hard to learn. This is simply not true, since anybody can be successful at it. Sure, there are tools and strategies involved, but they can be learned by any average beginner through the internet the minute you click “Go”. It’s just a matter of selecting a trading system and sticking to it.
Another myth is that forex traders lack the discipline to successfully operate in the market. This is simply false, since even the most experienced traders sometimes make mistakes due to lack of patience, but it’s still very important for you to have clear, smart, and unemotional trading rules. If you are to stick to your trading system rigidly, you will realize much better than a beginner exactly how much money you stand to lose on each trade.
A third myth is that forex traders can’t predict the market, so therefore, they are swamped by unexpected financial chunks. In other words, they sense some kind of emotion involving the value of the currency pair they’re trading, and jump in to predict and profit from it. What they fail to realize is that the only way to be sure of this is to make sure that you understand exactly what you’ll be doing on any reasonably active trading day.
Bill is convinced that forex traders are motivated by something more “basic” than greed or fear. He credits this to human nature, and imply that fear or anxiety are nurture-based. Since so many forex traders tend to see the financial markets not as an end goal, but rather a means to get there, one could argue that it’s not surprising that a lack of emotional control is one of the main causes of this.
Moving on, I wanted to talk about another myth that has been rampant in online forex for some time now: the myth that you need a lot of money to start trading. When I first started trading, I was under the wrong assumption, which was that I needed a lot of money to make money in the forex market, which is partially true, because ludicrous claims are made to the effect that you need a fortune to make a fortune in currency trading. Unfortunately, I’m not entirely convinced that this is a fact. If you are going to start trading the forex seriously, then I believe that you should go for a modest and realistic trading goal that you can work towards.
If you decide that you want to make $150,000 per year from trading, then I would recommend starting with a small initial investment, say $150. If you invest your full-time salary in forex, and succeed, then you really should consider yourself a successful forex trader, not a millionaire. You should not set your ultimate goal as $150,000 per year. Rather, aim to make $75,000 per year, or something equally impressive.
If you’re making money on a regular basis from forex trading, you can absolutely trade more, and increase your risk as you grow more experienced. Now, I know what you’re thinking: If I make this much money in forex, with no effort, who the heck will stop me? Well, you could stop depending on mommy, that nice stable job, and start collecting ten cents an hour. But that isn’t exactly the way most people work these days. Let’s face it: If you’re making that much money and trading in the forex market, you have to be doing something right.
What you’ll find is a growing community of people all over the world who are making money in the forex market, even though they don’t know much about it. They have made their money by knowing a specific aspect of the forex market that anybody can learn, execute correctly, and profit from. These people all swear by their own system in trading the forex. They’re not trying to tell you how to trade your forex. They’ve spent the time and effort to learn it for themselves, and you can do a lot better than them.