To date, trading on the stock market Forex is very very successful. It should be noted that only recently there has been a steady growth of traders. Unfortunately, not all people have estimated the benefits of this type of earnings.
For investors, Forex brokers offer a trust management service, namely investing funds in PAMM-accounts, the convenience of which can be assessed using a demo-mode.
On the Internet, you can often find discussions on the topic of Forex, they say, who has earned there and is it real? Namely, because of conducting such discussions at forums and in various chat rooms, myths were born, which we will tell you about in this article.
It’s almost impossible to earn money on the Forex market, and if it does, then no more than 10% of the initial deposit.
Earnings in the Forex market depend directly on the skills of the trader. You need to be able to buy in time, and then profitably sell the currency. However, we must admit that from a large number of newcomers on Forex, it’s only 10-15% of the money that can be earned normally. However, this does not justify the above belief. By the way, unlike direct foreign exchange operations with exchange offices, Forex participants use the so-called marginal and leverage trading system.
When going from demo mode to real, the trader is experiencing new difficulties.
It should be said that this is pure, although confirmed by many participants of Forex. The thing is that the transition from work on a demo account to real trading, as a rule, involves some difficulties. The fact that you successfully trade in virtual money can not at all serve as a guarantee of your profit when working with a real account. Technically, when changing from demo to real, only the processing speed of your application is changed by the broker. You will not be able to conclude a profitable deal with a second jump in the market. Discarding the assumption that the broker began to draw quotes, knocking down your stops and adhering to the execution of orders, waiting for a convenient quote (this problem is solved within the framework of the correct choice of the broker), in fact, when going from demo to real, everything rests first in psychology. If you have mastered the technical, fundamental and information analysis, correctly follow the principles of money management, regularly win on a demo account, then a successful transition to the real will be determined basically by one factor – are you able to treat your own money as to some tool. Are you ready not only to earn, but also lose money?
For trading on forex, you need large amounts.
You can start your own Forex trading with a minimum amount. This opportunity for individuals appeared with the introduction of so-called margin trading. The sense of margin is that to purchase a certain amount of currency you need to have only 1% of the contract value. The rest is credited to you by the brokerage office at the time of the transaction. After that, the loan is automatically withdrawn back, and all the profits earned with its help remain with you.
In Forex you need to turn to a guru in order to be confident in your earnings.
In fact, there are exchange gurus on Forex that allegedly can accurately predict market behavior. However, as for the fact that they must always be treated, it is a delusion. In fact, the guru is respected in the Forex market as long as all that he predicts, comes true, and not the fact that tomorrow the guru will not be mistaken. Therefore, it makes no sense to approach the guru. However, just ask what and how the stock exchange is still worth it.
The key to success in the Forex market is a good psychological state.
And it’s true, this statement can not be called a myth. After all, a lot of psychological loads are being brought down on the trader during work in the stock market, with which one must fight. It is the psychological aspect that will help the trader to pave the path to his enrichment.It should be said that experts point out that a balanced trader can save his deposit for a long time, while a trader with a shaky psychological state will lose him without fail. All this tells us that when trading in the Forex market you should always give a report to your actions, while being in a positive mood.
In Forex, the main ingredient is luck.
Forex is an elite stock exchange. On Forex, people who really know how to analyze the behavior of the market with the help of certain tools, and most importantly with the help of their heads! The share of luck, of course, is present for one of the parties concluding the deal. However, all the main component is definitely not the trader’s luck in carrying out a particular transaction. Usually such statements are made by “burnt-out” traders, who do not have everything in Forex as they would like.
It is not necessary to develop a trading system for Forex.
Here it is necessary to say that this is a real myth. A trader who really wants to earn money on the stock market must necessarily develop an individual trading system, which he will follow in the future. Usually, a beginner trader develops his own trading system during training. This is a long-term process. In the future, the trading strategy should be constantly adjusted taking into account the realities of the market. The trading procedure can include both the trading strategy and the trading plan and the daily routine and any other rules that form the trader’s mentality. The trading method is deeply individual and is created by each trader for himself.
You can work in the Forex market, but by following the clear rules that can be found on the Internet.
This statement can not be called both true and myth. Rather, it can be called 50% true, and 50% myth. The truth is that really, in order to ensure that beginners are not mistaken at the beginning of their career growth will have to learn the advice of professionals. However, further follow the “clear rules” do not need, because a trader is an individual trader in the foreign exchange market. If everyone trades in the same scheme, only 1% of the total number of traders will receive profit. Therefore, remember that to use the advice of professionals, and perhaps their methods of trade is only at the initial stage. Next, you must develop the scheme by which you will trade, and it must be strictly individual.
Forex trading is a variant of gambling.
Forex is an international currency exchange market, in which hundreds of banks, investment companies and individuals earn their living. The only similarity of forex with the casino is that if you make deals, hoping only for luck – then you can both lose your capital, and several times increase it in a short time. The difference is that in a casino you can not always win, but here it is quite real. In addition, no one will give you a loan for playing in a casino, whereas on a forex such a loan is supposed to be initially based on the terms of the “game”. Considering Forex as a business, working systemically and seriously, you can reduce the number of failures to a minimum, and the number of profitable trades – constantly increase.
For trading in Forex, you need a special financial education.
A person with any education can trade on Forex. Intellect, self-discipline and ability to restrain emotions are important here. Studying to work in the foreign exchange market, you acquire valuable and useful skills. They learn to react quickly to changes in data, to compare the huge streams of stock information on which to build analysis of your future transactions. Many successful traders did not have a higher education at all, but they had the necessary analytical skills.