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Author Topic: The Most Common Forex Myths  (Read 901 times)

Offline Robian

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The Most Common Forex Myths
« on: January 28, 2019, 02:40:34 PM »
Surfing on the Internet you can see a lot of offers to earn on Forex. Most of these ads tell us how easy is making money trading in the foreign exchange market. Having seen such tempting advertisements, many people are rushing to become traders dreaming of fast and easy profit.

Financial markets have become extremely popular, the number of Forex myths covered it is growing. I repeatedly met various statements regarding earnings on the Internet too. Today I want to tell you about the most common Forex myths and misconceptions.

Forex myths: what is true and what is not?

#1 Forex is a get-rich-quick scheme


Making money on the Internet is as easy as one-two-three! It was the statement I came across the web as soon as I decided to become a trader. Sounds good to be true. Traders who succeeded on Forex will tell you that trading takes time and experience to master, but certainly, it is not a get-rich-quick scheme. If it was possible to grow the account from $500 to $1 million in several months everybody would do it, wasn't it?

The way to a professional trader is not close, but achievable!

#2 To trade on Forex you need a huge initial capital

If earlier the foreign exchange market was opened only to large financial institutions, today everyone can try Forex trading. In order to start trading, you don`t need to be a large financial organization or Rockefeller, you can trade even with $10 on deposit. It is possible due to financial leverage.

#3 Demo trading prepares me for live trading

Demo accounts are great for getting to know how the trading platform works, learning basic trading concepts as well as testing a trading system. I do not recommend staying on demo accounts too long. It’s better to practice for a while and go to real trading. Cause there are no emotions when you trade with virtual money. And it is one of the main obstacles of the trader. The trader does not feel a real risk of losing real money.

#4 Copying trading manners is the key to profitable trading

Many novices think that if they will follow the actions of successful traders, they will quickly succeed and get rich. But even if a successful trader has a really effective strategy, this does not mean that it will work for you. You should develop your own skills, assess the situation on your own, and don`t entirely rely on others.

#5 The more complex the strategy, the more indicators are used, the more efficient trading

Traders are used to thinking that the more complicated the strategy is, the better results they can obtain. They believe that the more indicators they insert, the more accurate entry points they will find. But it is not usually the case. If you add a lot of tools, indicators, they just would get you confused. It will be difficult to straighten out the mess of indicators.

#6 It is impossible to combine trading with job

Another popular Forex myth: a trader must sit at the monitor around-the-clock. Partly this misconception appears because of short-term trading. But, if you`re not a scalper, it`s not necessary to spend 24 hours at the monitor and stare at the charts every second. Moreover, it does not guarantee you profitable trades.

Many traders have regular jobs, which take most of their time. Forex is open 24 hours a day, and they allocate time from their daily schedules for trading and trade when convenient. In addition, the trader is not tied to the location, he can trade anywhere.

#7 When a trader is having a rest, the profit is doing its best

There are a lot of offers on the Internet suggesting robots and expert advisers. They promise that the robot will trade profitably, while you do not have to do anything, just download or buy the robot, set it into the terminal and watch how he earns. An attractive description does not guarantee that the robot is really efficient and bring you the long-expected profit.

If you know such programming languages as MQL4 or MQL5, you can write a robot on your own, taking into account the technical and personal psychological aspects of your trading.

#8 News trading can bring a stable profit

Trading on the news is one of the most popular strategies among traders. News traders open orders during the important news releases and to earn on the growing volatility. It seems to be easy. Nevertheless, there are certain risks. It is necessary to understand that during the news releases the market can behave very unpredictably. At the same time, slippages and requotes may occur before the publication of the news.

I have also heard the opinion that the more trades, the better. You should understand that your profit depends not on the number of transactions, but on the discipline, the competent strategy, as well as on the risk and money management.

Such misconceptions confuse a lot of people, and they begin thinking about whether it is worth to start trading. So, learn to distinguish truth and Forex myths, do not form your opinion from other people`s stories.
« Last Edit: January 28, 2019, 02:44:53 PM by Robian »

Offline Eliza Abrams

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Re: The Most Common Forex Myths
« Reply #1 on: February 01, 2019, 02:34:52 PM »
Unfortunately plenty of bucketshops out there will try to sell people the idea that Forex is, indeed, a get rich quick scheme and many naive people sign up exactly for that reason.

Offline Ggeyda

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Re: The Most Common Forex Myths
« Reply #2 on: March 17, 2019, 11:47:21 AM »
This is very interesting article and I think that everybody should be aware of this 8 points. There is so many misunderstandings of this market probably coming from people who dont have enough knowledge and only seeking easy money

Offline Eliza Abrams

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Re: The Most Common Forex Myths
« Reply #3 on: March 18, 2019, 02:14:06 PM »
Also, regarding myth #8, I couldn't agree more. If you're a newbie especially, avoid trading the news on a live account.

Offline drunkfx

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Re: The Most Common Forex Myths
« Reply #4 on: March 18, 2019, 05:37:12 PM »
Surfing on the Internet you can see a lot of offers to earn on Forex. Most of these ads tell us how easy is making money trading in the foreign exchange market. Having seen such tempting advertisements, many people are rushing to become traders dreaming of fast and easy profit.

Financial markets have become extremely popular, the number of Forex myths covered it is growing. I repeatedly met various statements regarding earnings on the Internet too. Today I want to tell you about the most common Forex myths and misconceptions.

Forex myths: what is true and what is not?

#1 Forex is a get-rich-quick scheme


Making money on the Internet is as easy as one-two-three! It was the statement I came across the web as soon as I decided to become a trader. Sounds good to be true. Traders who succeeded on Forex will tell you that trading takes time and experience to master, but certainly, it is not a get-rich-quick scheme. If it was possible to grow the account from $500 to $1 million in several months everybody would do it, wasn't it?

The way to a professional trader is not close, but achievable!

#2 To trade on Forex you need a huge initial capital

If earlier the foreign exchange market was opened only to large financial institutions, today everyone can try Forex trading. In order to start trading, you don`t need to be a large financial organization or Rockefeller, you can trade even with $10 on deposit. It is possible due to financial leverage.

#3 Demo trading prepares me for live trading

Demo accounts are great for getting to know how the trading platform works, learning basic trading concepts as well as testing a trading system. I do not recommend staying on demo accounts too long. Its better to practice for a while and go to real trading. Cause there are no emotions when you trade with virtual money. And it is one of the main obstacles of the trader. The trader does not feel a real risk of losing real money.

#4 Copying trading manners is the key to profitable trading

Many novices think that if they will follow the actions of successful traders, they will quickly succeed and get rich. But even if a successful trader has a really effective strategy, this does not mean that it will work for you. You should develop your own skills, assess the situation on your own, and don`t entirely rely on others.

#5 The more complex the strategy, the more indicators are used, the more efficient trading

Traders are used to thinking that the more complicated the strategy is, the better results they can obtain. They believe that the more indicators they insert, the more accurate entry points they will find. But it is not usually the case. If you add a lot of tools, indicators, they just would get you confused. It will be difficult to straighten out the mess of indicators.

#6 It is impossible to combine trading with job

Another popular Forex myth: a trader must sit at the monitor around-the-clock. Partly this misconception appears because of short-term trading. But, if you`re not a scalper, it`s not necessary to spend 24 hours at the monitor and stare at the charts every second. Moreover, it does not guarantee you profitable trades.

Many traders have regular jobs, which take most of their time. Forex is open 24 hours a day, and they allocate time from their daily schedules for trading and trade when convenient. In addition, the trader is not tied to the location, he can trade anywhere.

#7 When a trader is having a rest, the profit is doing its best

There are a lot of offers on the Internet suggesting robots and expert advisers. They promise that the robot will trade profitably, while you do not have to do anything, just download or buy the robot, set it into the terminal and watch how he earns. An attractive description does not guarantee that the robot is really efficient and bring you the long-expected profit.

If you know such programming languages as MQL4 or MQL5, you can write a robot on your own, taking into account the technical and personal psychological aspects of your trading.

#8 News trading can bring a stable profit

Trading on the news is one of the most popular strategies among traders. News traders open orders during the important news releases and to earn on the growing volatility. It seems to be easy. Nevertheless, there are certain risks. It is necessary to understand that during the news releases the market can behave very unpredictably. At the same time, slippages and requotes may occur before the publication of the news.

I have also heard the opinion that the more trades, the better. You should understand that your profit depends not on the number of transactions, but on the discipline, the competent strategy, as well as on the risk and money management.

Such misconceptions confuse a lot of people, and they begin thinking about whether it is worth to start trading. So, learn to distinguish truth and Forex myths, do not form your opinion from other people`s stories.


Well, if you want to set reasonable trade targets like 1000-1500 USD monthly you do need decent amount of equity, to keep relative risk per trade low. Trading with wrong trading targets can confront your psychology and prompt to make trading mistakes.

Offline FxTS

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Re: The Most Common Forex Myths
« Reply #5 on: March 21, 2019, 07:25:15 PM »
For sure, trading requires substancial initial capital. There is nothing to expect while starting with $100 - such trader will take huge risks to earn sufficient profit and will fail soon. You need to have enough money to open the positions with unreasonable risks for your initial capital.
Another point is taking rest. There is an interesting thing called "overtrading" - this is about the situations when the trader spends too much time for trading at it causes underperformance. It will be better to someone to turn to the mid-term swing trading, watch their positions and let the profit grow.
Education, Exploration, Experimentation

Offline Eliza Abrams

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Re: The Most Common Forex Myths
« Reply #6 on: March 22, 2019, 02:59:03 PM »
I think a lot of newbies (and some experienced traders) have the unfortunate habit to overtrade and revenge trade and it just leads to losses.

Offline grobanjosh

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Re: The Most Common Forex Myths
« Reply #7 on: April 02, 2019, 07:15:54 AM »
Nice thread! It is so true! All this myths I had in my own mind before I started to learn trading!

Offline marcopiccollo

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Re: The Most Common Forex Myths
« Reply #8 on: April 02, 2019, 07:49:39 AM »
I think #4 is a bit uncorrect. I started like that. I looked how other really good traders do their profit and learnt a lot from this. BUT the thing is that if you just stop there you're not gonna grow. There's time to copy and there is time to make a new step and do it by yourself

Offline Eliza Abrams

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Re: The Most Common Forex Myths
« Reply #9 on: April 02, 2019, 03:08:55 PM »
I think it depends on the person, but it is generally good to learn how to trade by yourself and not rely on others.

Offline Ybendakin

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Re: The Most Common Forex Myths
« Reply #10 on: April 09, 2019, 09:16:53 PM »
Nice thread. I really think this should be made sticky so that every new trader should read it. Its important to get into trading with a clear focus and the right mentality. The reason why most traders fail is because they enter the market with minds that have been poisoned with these myths. Especially that get-rich-quick scheme

Offline Loperte

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Re: The Most Common Forex Myths
« Reply #11 on: April 20, 2019, 09:32:09 AM »
Copying trading might be good option for beginners, but just for a short time, in order to get some trading tips. It could be treated as part of learning process. However, relying only on other people trading is not good idea

Offline Eliza Abrams

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Re: The Most Common Forex Myths
« Reply #12 on: April 25, 2019, 02:45:54 PM »
Well, if one finds a very good trader to copy they can stick with them. Different things work for different people.

 

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