Big Misconception of Forex

Whether you are an experienced dealer or new to a foreign currency market, myths about Forex trading always keep wandering around you. These myths can potentially affect anyone, no matter how long they are doing business. Knowing some key myths can save traders from unnecessary frustrations, there are probably many business myths, but we will see 10 which often come and affect every stage of development - why people in foreign currency to develop strategies Get involved (to decide which markets can be complicated in the business, and many factors should be considered for making the best choices

Get rich quick

Advertising is rapidly expanding the retail market in foreign currency, since many people have been brought in such a field that are looking for rich quick (or with little effort) to get. This is unfortunately really very rare. The business takes patience and there is no final destination. Traders do not make some money and then go away; Rather they do business after business, even if there is a time interval between them.

Forex currency is for short-term merchants

High leverage has made the short-term foreign exchange business popular, but this is not the way it should be. Long term currency trends are driven by fundamental factors, and these long term trends are tradeable. Long term traders concentrate on bigger tendencies and are not related to daily guerrision. It is logical that taking long-term time limits can be beneficial for some traders as it will reduce the number of spreads paid (equivalent to commission) and traders are more likely to avoid short-term impulse trading. Purchases can also be used as investment in diversification or hedging in the portfolio of buying and holding.

Market is dashed

Losing traders often point to a sly market or corrupt broker because of their failure due to Although it is an easy assumption, foreign exchange is not a scam. The forex market is the largest in the world, which flows with hundreds of transactions and possibly thousands of inputs every day. This means that if someone takes a non-business approach to their business, then one of the other sensible participants will usually notice - this is the way of all markets.

 You can be right all the time

There is a loss, and every time to try the right strategy, either the trader will leave indefinitely or bring the trader with a highly-optimized strategy in the market which will not be in accordance with the new circumstances. Accepting that loss and finding a strategy that gives a slight increase in market conditions, brings in a positive return adequately.

You Can Easily Make Money Trading News

Following the announcement of high impact news such as the report of the American Nonprofit Payroll (NFP), seeing the speed in currency, people can be saved from the idea of quick money. It is very far from reality, because in real time trading news events can be very difficult. Generally, this chart does not show that there is no liquidity for many invoices in the first few seconds after the announcement, which means that traders can not get favorable steps after starting business or losing Can trade out once they are in it, although it is possible to set up a business before being announced, the probable impact on the market for execution An analysis of data presented for determining the need This analysis should be conducted almost immediately because other traders are estimating that same indicator. Therefore, business news takes a cautious strategy, and rarely gets easy money rarely.

More traders with more pairs is better

Although it would be nice to see that if a trader does a business every day in a day, he can do 10 times more business than 10 times, this is not usually the case. For some business traders, focusing on fewer trading and some currency pairs which the trader understands, they will be beneficial. Unless a businessman is skilled and focuses on the scaling strategy, most traders will benefit from being patient, whatever they know and are waiting for the best opportunities on them - whatever may happen.

 The Market is to Predict how to earn money

An attempt to predict a trader may collapse, although it tries to make the most discreet. The prophecy can blind us, because it is the cause of psychological bias towards a situation and can disrupt our rational decision. Merchants, according to one system, should do business and do business with those who win the win. The market, which is constantly moving, should be traded. If prediction is done, then the trader should wait for currency movement to confirm that the prediction is correct.

 Money Management means a stop

Once the merchant has developed some skills in consistent returns, then money management (MM) is the most important factor in determining successfully. MM is not just giving orders to stop a business; Rather, how risk would be the total account on each trade in it - this should generally be less than 1%. It will also see how many trades can open at the same time, and if many positions are opened then they need to hed each other or they can be highly correlated by focusing on wealth management, a trader Takes his business to the next level, ignoring the money management, that is, with failure, even with the best strategy.

You can just follow others what others are doing

There is always great advice to give advice about business, business and business. Yet eventually this merchant is the money, and the sole recipient of the benefits and disadvantages. Therefore, because the money of the trader is at stake, they should make every effort to reach their own conclusions instead of developing their skills and relying on the advice of others. Experienced professionals can help a lot of new (or other experienced) traders, but all information about the information should be filtered and tested. In the profitability of the account, it does not have any vested interest in its business; Therefore, the account merchant should provide the largest input.