I’m going to show you the 5 myths about Forex trading and why they are all wrong. Believing in a fake myth is a huge danger. Lots of traders learned this on the worst possible way…
When you finish reading this small report, you’ll be one step ahead them.
Myth number 1 – If I know how to trade stocks, I know how to make money in Forex:
If you have experience trading stocks and think you can simply apply your knowledge in Forex and make money, you’re going to be disappointed. The Forex market is much more complex. Firstly, the Forex market is open 24 hours a day. This may not seem a big deal but it’s a significant difference in relation to the stock market. As the Forex market is open 24 hours a day, this brings more complexity to a trader. If in the stock market you have periods of higher and lower volatility, in the Forex these differences are even higher.
Many stock traders think the Forex market is easy because it is open 24 hours a day. They think they can trade whenever they want and make their quick bucks. Truth is you can make money in Forex. But for that, you need to have a deep knowledge about this market. You have to know the best time to trade Forex in order to adjust your strategy to this market.
Besides this, the indicators that work in stocks don’t always work in Forex. The Forex market is more complex and, this way, the indicators that you use on stocks don’t work so well here.
Brokers are another huge difference between stocks and Forex. In the Forex market, due to the lack of regulation, a lot of Forex brokers don’t act in their clients’ best interest. It’s a lot more difficult to find a good Forex broker than a stock broker.
Later on this Free mini course I will tell you how to avoid Forex Brokers Scams.
Myth number 2 – Since the market is open 24 hours a day, you can make Money anytime you want:
Once again, this is not true. In order to make money, a trader needs volatility. Although this market is open 24 hours a day, in the majority of the time there isn’t enough volatility to make good trades. This is a big challenge because volatility can appear at any time of the day and the trader can’t be watching the market all the time. He has to adjust his strategy in order to trade only in high volatility periods.
Myth number 3 – There are no trading fees in Forex:
You don’t pay a commission fee when you place an order. Although, you pay the spread, which is the difference between the bid and the ask.
This way, the more you trade, the harder it will be to make money in Forex because you’ll have higher fees. In the Forex market, as in any other market, a trader must avoid the overtrading at all costs.
Myth number 4 – You need to predict what will happen to make money in Forex:
In order to make money in Forex, you need to react to what is happening. This is not the same thing as predict. A good trader simply reacts to whatever the market is telling him. He analyses charts, reads the news and all information he has at his disposal in order to react as fast as possible to market movements.
Myth number 5 – The more complicated my strategy, the best:
This is another myth that has nothing to do with reality on Forex trading. The truth is that usually the simple strategies or systems outperform the complicated ones.