Tuesday, July 8, 2014

Common Forex Myths Which If You Believe Them Can Destroy Your Equity!

Here are 5 common myths that most new forex traders make and end up losing all their money quickly. If you fall for any of them, you will end up a loser. Let's look at them.
 
Myth 1
 
You Can Follow a Forex Robot with a Simulated Track Record and Win
 
Many traders are just naïve or stupid and believe if they invest 100 dollars in a forex robot they will get a guaranteed income what they end up getting is a guaranteed loss. Quite simply, these traders don't look and see the robots come with paper simulated track records and gains NOT real ones!
There simply made up knowing the past we can all do that but trading without knowing the price closes is vastly different.
 
Myth 2
 
Buy Low Sell High is the Aim of Successful Forex Speculation
 
It's a well worn phrase and its dead wrong if you try and buy low and sell high, you will miss most of the big moves which actually start and accelerate from new market highs and lows.
 
All the best trends come from these breakouts and if you don't trade them, you will miss the best opportunities.
 
Myth 3
 
You Need to Predict to Win
 
This really goes with the above myth. Traders get obsessed with predicting tops and bottoms but of course if you are predicting, you are hoping and guessing and that won't get you very far in life let alone forex trading. Trade the reality of price change and never predict if you want to win.
 
Myth 4
 
Intelligence and Hard Work Bring Success
 
Not at all, you don't need to be intelligent to win and clever people who think they deserve success end up disappointed. Furthermore, hard work doesn't guarantee success. The only criteria you are judged on is how much money your trading signal makes and it doesn't matter if you took 5 minutes over it, or 5 hours it's the result that counts.
 
Myth 5
 
Forex Trading is Easy
 
Many vendors of robots, day trading systems and forex signal services promote this myth because it's in their interest but of course it's not easy, if it were 95% of traders wouldn't lose. Only 5% win and make really good money from forex trading and if you think trading is a "walk in the park" the market will hand you a lesson in respect.
 
The rewards are so high because it's not easy, forex success is achievable but you need a strong forex education and the mindset to succeed.
 
The above 5 myths are not the only forex myths traders' fall for - but there very common and if you believe them your trading account won't last long.
 
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