“So many men, so many opinions.”
This saying goes well with the forex market as many people have different opinions about it.
Some even perceive the ideas that are not right about the forex market and have become myths.
These myths prevent many people from joining the market.
So, in this article, we are going to debunk some of the common myths surrounding the forex market.
Myth 1: Forex is a scam
Forex is an international currency market created to simplify foreign trade. Of course, some online forex brokers are tricking their customers but the forex market has nothing to do with this. This applies to dishonest private practices of individual companies.
Myth 2: You will not earn anything on forex
It is not valid. Earnings money from forex is possible. Some traders are making a full-time income from it.
The best practice is to acquire knowledge and control your emotions.
Myth 3: There are no ways to beat the market
This is also not true. Successful traders develop strategies that increase their chances of success. With competent money management and risk management, this approach allows you to earn in the long term.
Myth 4: A large amount is needed for trading
Some time ago, this was true. But now you can open an account from $100. Also, now all the brokers offer leverage. It allows you to significantly increase the trading capabilities and earn much more in case of a successful outcome of transactions.
Myth 5: You cannot earn without knowledge of economics/finance
There is a myth that you can only earn in the forex market if you know economics and finance. But it’s not true. You can start making money even without an economics degree.
The best way to do this is through technical analysis, which is the search for trends on the chart. Mastering this method does not require knowledge in the field of economics.
Nevertheless, to increase the chances of success, it is recommended to study at least the basics of fundamental analysis and understand,for example, how interest rates affect currencies and how the economy affects these rates.
Myth 6: An ordinary trader has no chance at Forex
Yes, there are many major players in the market. But individual traders do not need to strive to play against the market. Their main task is to understand in which direction the money of significant bidders is working. In this case, your chances of success are greatly increased.
Myth7: It is unrealistic to trade with another day job
In addition to trading, many traders have a primary job, which takes most of their time. It is unnecessary to sit around the clock and look at the Forex charts to be a successful trader.
You can place pending orders and continue to do your own things. They will work automatically even when the trading platform is turned off. Also, the forex market operates 24 hours a day. You can set aside several hours a day for trading and trade at your convenience. If you believed in any of these myths, we are sure that after reading this article, you’ll debunk them. If you would like to know more about how to Trade Forex, read FXCC’s most comprehensive article called ” Learn Forex Trading step by step ” .