Being on the market for quite some time Forex has had it’s usual share of legends, sometimes generated by scammers sometimes exaggerations or interpretations of some lesser facts or rumors. The following is a list of 4 of the most believed myths which do not stand the test of reality.
1. Forex will earn you a lot of money very quickly.
Consider that most experienced traders do not hazard in predicting the way the market will evolve and that most of the times they will impose some strict limits to the overall transactional amounts. The whole professionalism of the matter means that the amounts gained may be higher but they are far from certain.
2. The Forex market is held as a rig
The market is too vast and an inexperienced trader will most of the times find himself losing money. And it is not because of someone’s bad intention but rather the massive weight of the system as a whole. You have to have a lot of experience to be able to predict the changes in due time and to adjust accordingly. But be sure that nobody has the power to singlehandedly influence the market in such a way as to make you lose. Be the first to blame when a transaction fails to bring you any money.
3. The whole system can be scientifically predicted
The myth comes most certainly from the junk emails that have been circulating extensively in the later times. They are not true, but rather use facts as a means to disguise a trick. Yes, you could have a fair amount of predictions if you knew the market better, but that is something nobody can do with ease. Most of the times information is available to everybody but it is in the hands of the most powerful traders to discern what is important from white noise.
4. The experts never have any losses and they should be followed.
The only thing that an expert has compared with any other usual trader is more money to trade and more experience. Sometimes even access to some less usual amount of information but on the long run he uses the same tools as you do and the same losses apply to him as well. A professional trader will have some losses as well.
Myths will always make it into the field, they are unavoidable. Sorting the truth and using it to better your chances to win should be primordial to the business. Never believe the rumors unless you verify them.
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