Tag: Forex Myths

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Forex Basics

The Most Common Complaints About Forex, and Why They’re Completely Bunk

There are a lot of complaints when it comes to forex trading, and we mean a lot. Many of them are completely legitimate while others are based on a single opinion or something that someone may have experienced. Whatever the complaint is, there will surely be ways to get around it or to help out […]

There are a lot of complaints when it comes to forex trading, and we mean a lot. Many of them are completely legitimate while others are based on a single opinion or something that someone may have experienced. Whatever the complaint is, there will surely be ways to get around it or to help out […]

There are a lot of complaints when it comes to forex trading, and we mean a lot. Many of them are completely legitimate while others are based on a single opinion or something that someone may have experienced. Whatever the complaint is, there will surely be ways to get around it or to help out to prevent those things from happening again in the future. It is because of this that we are going to be looking at some of the most common complaints that we hear about forex and the reasons why those complaints probably should not be happening.

It’s Too Hard

Forex trading is not hard, complicated yes, but not hard. We say this even with the knowledge that the majority of people that trade will lose money. People seem to put the term hard on everything these days, forex is not hard, it just takes time, and that’s for some people what makes things hard. Yet in reality, it is not hard at all, all you are technically doing is placing a trade, choosing whether it goes up or down and that is it, it is incredibly easy and quick to do. Yet people refer to it as being hard because of the amount of time and effort that you need to put in in order to be good at it and in order to know which way you should be placing your trade. Yet it is still not hard, it just takes time, time does not make things hard, hard shoulders mean that it takes a lot of effort in order to do the thing that you are trying to do, and that is playing the trade, which we have already discussed, is actually very simple.

People simply do not want to put in the time that it takes in order to be a better trader, they just want to get on with it and that is a mistake. If you try to place trades blind you will make losses, those losses will of course make it harder to make profits, but again, that does not make trading hard, it simply means that you need to put in more time, not more effort.

It’s All A Scam

Forex trading is not a scam, if it was there wouldn’t be over a trillion dollars being traded every single day. Forex is basically just a way of exchanging foreign currencies for each other. It has been happening for hundreds of years in one form or another and will happen for hundreds more. Businesses are run off of it and if it was a scam, the majority of businesses that we have today would have disappeared a long time ago.

We have to admit that within the forex trading world there are a lot of scams, but these are from individuals, people who are setting out to try and take your money. These are the people offering ridiculous Reuters on your investments or certain brokers that have been set up to be predatory, trying to milk money out of you. It is important to know that those are individuals and not the industry as a whole. The industry is completely legitimate, you can do it yourself, go to a foreign exchange shop, buy some currency, hold it for a while, and trade it back, you are doing the same thing on the markets, just in a more convenient way and for more money. Fores is not a scam. It wouldn’t be here if it were, it is as simple as that.

It’s Not for Individuals

Many years ago this would be completely true, you used to need millions of dollars before you could even consider trading on the global forex markets, this made it so that only the biggest businesses and institutions could take part in the markets. These days though, this is certainly not the situation that we are in. These days anyone can trade, all that it takes is a computer or mobile phone, an internet connection, and a balance of as little as $10. That is all that you need to trade which is ridiculous and incredibly accessible. There are no more excuses available for it not being easy to get into. You can go from no account to your first trade being placed in the matter of about 10 minutes with some brokers. There are millions of people trading from their bedroom at home and things will only continue to get easier.

It Takes Too Long

We mentioned above when we discussed forex being hard that it takes time, this is true, but it certainly does not take too much time, if you are finding that it is, then that is something that you as an individual are doing wrong. Actual trading, placing trades, and the analysis for each individual trade does not take a lot of time, this can be done in a few minutes up to 30 minutes, which should be more than enough time to place a trade. What can take a while is the initial learning, but that does not mean that you need to do it all at once which for some reason is what a lot of people try to do. When you try and cram in all your learning into one session then yes, it will take a while and it will be boring. Instead spread it out, learn one thing a day, do not bog yourself down with books and reading for hours at a time. If you spread it out, it will still take the same amount of time in regard to actual learning, but it will be far less boring for you and don’t feel like such a chore or that it is taking up so much of your time.

Those were some of the more common complaints that we see about trading forex, as you can see, the majority of them are simply not true, in the past there may have been a little more relevance to a lot of them, but as things have progressed they are becoming less and less an issue, but they are still things that people like to complain about.

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Forex Basics

The Most Interesting Myths and Truths About Forex Trading

There are many myths about Forex that need to be left behind well in the past and here we will tell you exactly what these are because in reality there are many more myths than truths. In this article, we tell you everything! So let’s dive into the good, the bad, and the ugly.  The […]

There are many myths about Forex that need to be left behind well in the past and here we will tell you exactly what these are because in reality there are many more myths than truths. In this article, we tell you everything! So let’s dive into the good, the bad, and the ugly.  The […]

There are many myths about Forex that need to be left behind well in the past and here we will tell you exactly what these are because in reality there are many more myths than truths. In this article, we tell you everything! So let’s dive into the good, the bad, and the ugly. 

The myths about Forex that circulate in the network do damage to this type of investment. Currency speculation has always been, especially in recent years, the victim of false news and rumors. In order to succeed in speculating or investing with this trade, investors need to leave behind these myths that affect the image of Forex and its expectations.

Forex gives monthly returns or interest.

Another false myth. As in the equity market, the return generated by the person investing in this product depends on the movements of the currencies the investor buys. In other words, profitability only depends on the fluctuation of prices, something that also happens with other investments (raw materials or stock markets, for example).

Forex is a pyramid.

Forex is an electronically controlled market where all foreign exchange transactions are carried out worldwide. Its usefulness is incalculable for international trade since it is in this place where the currency needed to pay or collect money from import or export products is bought or sold.

Forex makes you rich in a few hours.

Another falsehood. While it is true that anyone can access this market and accumulate strong profits in a short period of time, to invest in Forex and accumulate profits it is recommended to form in markets. That is, it is advisable to take a course to invest in a stock. With this course, we will be able to strengthen the knowledge we have and, on the other hand, learn more about Forex techniques.

Giving up our job to invest in Forex.

Investing in Forex does not mean giving up our job. We can test trading as a part-time job, at least entry, but never leave other sources of income and always learning from investment or currency speculation and receiving continuous training.

The intermediaries only want to con you.

From a few illegal experiences, many people think that the brokers who allow us to speculate on Forex are scammers. We must be clear that there are corrupt companies, but they are a clear minority. Forex is the largest market in the world, which has existed for many years.

There are two fundamental points that show why intermediaries don’t want to rip you off:

-Current licensing and regulation make it impossible for intermediaries to commit fraudulent activities. If you have opened an account with an authorized broker, the current regulations will protect your capital.

-Brokers earn money with the buy or sell spread. That is, they do not need to steal the investor’s capital to make a profit.

On Forex, you bet.

Forex trading is speculative, but to a certain extent: it is not a casino. The strategies and tools in this market are like those in the stock market. Forex traders have different trades, but they don’t work randomly. If an operation is carried out as if in a casino, this is the responsibility of each investor only.

I can make profits whenever I want if the Forex market is open 24 hours a day.

Again, you will not be sitting in front of your computer throughout the day to be able to operate for 24-hours. I would need automated trading software to take advantage of the 24-hour trading market.

I need to accurately predict the outcome of the market to succeed in Forex.

Unfortunately, there is no scientific method for us to have the knowledge of what is going to happen in advance on the market with 100% certainty. There would be no foreign exchange market if the exact exchange rates could be known in advance. Trading will never be an activity of certainties, but of probabilities. New traders tend to think in terms of odds, and this is one of the first things they learn and risk-reward relationships.

Many times you tend to think that you need to use an extremely complex strategy in order to succeed in Forex trading. It’s a popular myth that many online marketers want to create. The main requirement for success in Forex is self-discipline and money management. There are many traders who make profits consistently with simpler and older strategies.

A large amount of initial capital is required for Forex earnings.

A large capital investment will not help you with Forex. You don’t need much money to diversify into currencies and you can’t move exchange rates with your orders (you would need billions of dollars to do that). You can actually trade in forex with very little capital because forex trades are almost always leveraged with the money of the broker.

It’s a risky market.

One could say that it is a market with a lot of risks. The ability to leverage, or buy up to 100 times as much money as you have for investment and high volatility, or the sheer speed with which prices change every minute, can mean big losses to the investor.

The advice for those who decide to enter this market is to know the market before entering it, look for a broker’s platform, if someone will advise you to look well at the experience and set and respect the limits of loss per operation, by day, by week and by month.

Is completely legal.

Although it is not regulated, anyone can legally access Forex through a simple mechanism, looking for a broker. The recommendation, in this case, is to invest in a recognized broker, with trajectory, and use the formal channels to deposit the money to the account in which you will trade.

There Is No need to fear the Forex market.

Once we have established that it is possible to predict the market, why are there so many traders who, understanding and agreeing with this point, have trouble exploiting the market profitably? It is here that psychology is most useful. The trader should not be scared or afraid of not being able to win the market, as the market is changing, nor should he fall into despair because the trade he is waiting for right now seems unworkable, etc. The list of psychological problems that can be identified is quite long, and almost everyone identifies with fear or fear.

“Don’t be afraid of financial markets, just respect.”

The experience and knowledge of how they work will gradually turn us into traders with better mental control and more prepared to face any eventuality in our operation with total normality.

You can earn a lot, YES, but can you lose a lot? YES.

For example, if you open a new account with $10,000 in a broker that allows you to buy currency for 30 times more than you have in your account. Now buy 200.000 euros at a price of US$1.20 per euro, which is investing in total is US$240,000.

In this situation two possible scenarios may occur:

  1. The price of the euro grows to US$1.30. In that scenario, it would earn US$10,000, because it obtained a profit of US$0.1 for each euro it bought.
  2. The price of the euro drops to US$1.15. This is the side of history that no investor likes, but that usually happens to starters. In this scenario, I’d lose $5,000. And if you do this several times in the day, trying to make up for what you lost, chances are your account will be zero at the end.

The scenario that is illustrated, is something that usually happens on a daily basis in the Forex market. Then we already know the importance of learning and knowing how to choose an appropriate strategy to limit losses once a trade has taken place.

Categories
Forex Basics

Forex Myths that Some People Actually Think are True

As we’ve moved into the 21st century, forex trading has risen in popularity and attracted a growing number of traders from all over the globe. Although we would expect people to have a better understanding of forex thanks to the increased awareness, there’s actually a lot of confusion and several myths surrounding the subject. It […]

As we’ve moved into the 21st century, forex trading has risen in popularity and attracted a growing number of traders from all over the globe. Although we would expect people to have a better understanding of forex thanks to the increased awareness, there’s actually a lot of confusion and several myths surrounding the subject. It […]

As we’ve moved into the 21st century, forex trading has risen in popularity and attracted a growing number of traders from all over the globe. Although we would expect people to have a better understanding of forex thanks to the increased awareness, there’s actually a lot of confusion and several myths surrounding the subject. It can be difficult for new traders to decipher what is and isn’t true, considering that some of these myths are passed around as common knowledge and repeated often. Some of these false beliefs can even cost you to lose money! Below, we will debunk some of the most common myths you’ll hear about trading and shed light on any real facts that inspired them.

Myth #1: Trading is Only for Rich People

We’re more than happy to announce that this statement is actually the opposite of the truth. In fact, many brokers offer trading accounts that can be opened for less than $100. In some cases, brokers will allow you to open an account with $10 or less. So where did the myth that trading was strictly reserved for the rich come from? Those that can afford to make larger deposits can usually open better account types through brokers and there is potential to make more money when you have more money to invest. People also tend to assume that rich people have more resources available to learn to trade, as they can afford to attend college courses or pay for account managers, financial advisors, and training. In reality, you don’t have to have any of these things and everything you need to know can be learned online for free. 

Myth #2: The Risk isn’t Worth it

Just like with any other investment, forex trading does carry a level of risk with no guarantee that you’ll make money. Many people have done so and gave up in the beginning, which likely contributes to the popularity of this rumor. In reality, trading offers a much more structured way to make money because you aren’t blindly rolling the dice and hoping for a win. Your trading decisions are based on real evidence and you can control the amount of money you’re risking on every trade by practicing effective risk management. Keep in mind that your knowledge of the markets and your trading plan also have a big effect on the results you’ll see and that many of the people who say trading isn’t worth it didn’t understand the markets fully or they went in risking way too much money from the start.

Myth #3: Trading More is Better

The concept that entering more trades would give you the opportunity to make more profits seems simple, but this isn’t the way it really works. If you overtrade your account, you run the risk of an overactive account, which is harder to keep up with. You could then become stressed out or anxious and begin making mistakes or forgetting to exit trades. Traders that use too many indicators on their charts often suffer from this problem as well. Keep in mind that some strategies do require trading more, but you should never take on more than you can actively manage. 

Myth #4: Trading is Easy

Brokers have made it extremely easy to sign up for a trading account these days by only asking for a few personal details (like name, email, phone number, address, and country of residence) alongside low deposit requirements. If you want to open a trading account, you can literally do so in minutes. Unfortunately, the simplicity we mentioned leads many beginners to think that trading must be easy since it’s so easy to get started. In reality, you need to invest a lot of time and knowledge into researching various trading topics in order to be truly ready. It’s true that trading is something that most people can do successfully if they invest the proper time and effort into it, but many people believe the misconception that it is a quick and easy way to get rich and aren’t willing to put in the effort needed, so they lose their money and abandon their trading accounts. 

Myth #5: The Forex Market is Rigged Against Traders

Some people believe that you can’t make money trading forex because big banks and governments rig the market, or that brokers change and influence data to make you lose. In reality, the value of a currency is influenced by entities like banks and governments, but this is caused by inflation rates, interest rates, unemployment rates, elections, and other matters that just happen to affect the market. It isn’t actually possible for brokers to rig the market against traders either, as the forex market is too volatile and liquid to be rigged. In some cases, traders lose money at their own fault and want to blame their broker or say that the market is rigged to help their ego, even though this isn’t the case. 

Myth #6: You Need to Constantly Watch the Market

You don’t have to sit around in front of your computer screen 24/7 to be a successful forex trader. In fact, many people manage to work full-time jobs while trading on the side. You do need to spend some time looking at charts and analyzing data, but there are tools out there that can do this for you. For example, you could sign up to receive signals from a trusted signal provider in order to receive messages that tell you when you should enter a trade. Expert Advisors that trade for you are another shortcut that significantly reduces the amount of time you have to spend online looking at data.  

Myth #7: Forex Trading is Just a Big Scam

The idea of trading is scary to some because it involves making an investment through a broker and withdrawing profits later on. They imagine that the broker might keep their funds and refuse to issue their withdrawals for made-up reasons or that they might never respond to them again once funds are requested. It’s true that there are some brokers out there that are scammers, but you can avoid these shady companies altogether by doing research on any company you’re considering and sticking with more popular options that have received online reviews from real traders. It also might help you to rest easy by knowing that many of these brokers are regulated by government agencies that hold them accountable and ensure that traders don’t have to deal with shady tactics.

Categories
Forex Basics

Don’t Let These Common Myths Keep You from Trading

There’s a lot of speculation out there when it comes to forex trading, especially coming from people that have never tried it before. Many of the myths you hear make trading sound like a bad investment. On the contrary, trading may not be for everyone, but it can be a good investment under the right […]

There’s a lot of speculation out there when it comes to forex trading, especially coming from people that have never tried it before. Many of the myths you hear make trading sound like a bad investment. On the contrary, trading may not be for everyone, but it can be a good investment under the right […]

There’s a lot of speculation out there when it comes to forex trading, especially coming from people that have never tried it before. Many of the myths you hear make trading sound like a bad investment. On the contrary, trading may not be for everyone, but it can be a good investment under the right circumstances. If you’ve been considering opening a trading account but you’re feeling a little worried, allow us to debunk some of the most common rumors you might have heard below. 

Myth #1: It’s a Scam

You might have heard stories online or even from close friends or family members that claim forex trading is a scam. The truth is that some industry regulations do make it possible for scammers to prey on those that don’t know a lot about trading, however, this gives the trustworthy brokers a bad reputation. There are many good brokers out there that are regulated by government agencies, meaning that they are held to a higher standard. It’s important to do thorough research before selecting a broker by checking out their regulation status and reading customer reviews online. As long as you go with a trustworthy, well-known company, you won’t have to worry about being scammed. 

Myth #2: It’s too Expensive

You might assume that it takes a lot of money to get into currency trading, however, many different brokers will allow you to start with as little as $10. From there, you aren’t obligated to continue making deposits to your account. Do know that some brokers ask for steeper deposits around $300 or more, or a broker might ask for a larger deposit for a certain account type that they offer. Still, trading can be inexpensive and there’s no reason why you can’t start small. Just know that the amount of your profits depends on what you invest, so don’t expect to make a living off of a $100 deposit. 

Myth #3: It’s Time Consuming

Some trading strategies do take more time than others, for example, a scalper might enter several (or hundreds) of trades per day, which obviously requires a lot of time in front of the computer. On the bright side, those that don’t have the time to invest can simply stick with a strategy that is less time-consuming, like swing trading, which involves opening a medium or larger trade and allowing it to accumulate for days or even weeks. 

Myth #4: It’s too Risky

It’s true that trading can be risky, however, there are many things you can do to make it safer for yourself. Starting out with a solid education and understanding of how trading works is one example, while only risking a certain amount on each trade is another good way to limit your risk. The amount you risk comes down to personal preference and can be changed later on, so there’s no reason to feel like you’re being forced to put more money on the line than you’d like to. 

Myth #5: Trading is too Complicated

If you jump right in and open a trading account without spending any time researching trading in general, then you’re likely to feel confused or overwhelmed. Fortunately, the internet is filled with free resources that will teach you everything you need to know. Some beginners just don’t want to spend the time learning, so they write trading off as being overly complicated and give up. As long as you’re willing to put in the effort, there’s no reason why you can’t use the internet to prepare yourself for a trading career. 

Categories
Cryptocurrencies

Six Cryptocurrency Myths All Traders Should Know About

Cryptocurrency has been rising in popularity lately, but it remains largely misunderstood by many traders to this day. You might have heard some rumors or others may have told you that investing in cryptocurrency isn’t a good idea. Or perhaps you’ve heard the opposite, that investing in cryptocurrency is guaranteed to make you a millionaire. […]

Cryptocurrency has been rising in popularity lately, but it remains largely misunderstood by many traders to this day. You might have heard some rumors or others may have told you that investing in cryptocurrency isn’t a good idea. Or perhaps you’ve heard the opposite, that investing in cryptocurrency is guaranteed to make you a millionaire. […]

Cryptocurrency has been rising in popularity lately, but it remains largely misunderstood by many traders to this day. You might have heard some rumors or others may have told you that investing in cryptocurrency isn’t a good idea. Or perhaps you’ve heard the opposite, that investing in cryptocurrency is guaranteed to make you a millionaire. Regardless of whether you’re pro-cryptocurrency or against it, we’re here to debunk 6 of the most common cryptocurrency myths. 

Myth #1: Cryptocurrency doesn’t have any real monetary value.

This is one of the most popular myths about cryptocurrency. People think that because it is virtual or invisible, it has no value in the real world. Donald Trump once said that it “based on thin air”. This isn’t true. If you check out the current cryptocurrency rates, you’ll see that the value of cryptocurrency continues to rise. Scarcity, supply & demand, and utility add to the value of cryptocurrency coins as well. Bitcoin, Litecoin, and other cryptocurrencies are even accepted by many brokerages and other institutions as a valid funding method. Even though we can’t physically see cryptocurrency, this doesn’t mean that the coins don’t hold value. Otherwise, they would never be recognized and accepted for payments. Keep in mind that all other exchangeable currencies were once based on nothing as well. 

Myth #2: Cryptocurrency isn’t safe.

Many investors worry that cryptocurrency is a big target for hackers and that it isn’t a safe place to store one’s money. With some cryptocurrencies, this may be true – there are scammers out there, but it is important to remember that each provider is different. Providers that use blockchain technology offer a much higher level of security. If one block is changed, it affects the surrounding blocks, which makes it much easier for the network to pick up fraudulent activity. Remember, even regular banks attract scammers. Cryptocurrency may even offer better security than a central bank, as fewer hackers understand how it works and that information isn’t used as often as one’s bank account number, for example. 

Myth #3: Investing in cryptocurrency is a guaranteed moneymaker.

Cryptocurrency is a volatile instrument. This can be good for traders because it offers more chances to enter and exit the market. However, the sharp rises and dips in price make investing riskier. Even if someone you know personally has made a large profit from investing in Bitcoin or another cryptocurrency, this doesn’t mean that you will have the same luck. Of course, this is true for any trading instrument, it’s just that cryptocurrency is more volatile than currency pairs. 

Myth #4: Transactions are anonymous.

Many traders believe that transactions made with cryptocurrency are anonymous, but this isn’t the case. Those transactions are kept on a public ledger and some government organizations have relationships with owners to keep track of it all. For example, it was recently discovered that several people using Bitcoin were using the currency to make illegal purchases. Your sending address can be tracked, although some providers are more laid back while others monitor this more carefully. 

Myth #5: Only tech-savvy people can use cryptocurrency.

Learning to use cryptocurrency may seem intimidating to those that are used to traditional banking methods. This doesn’t mean that you shouldn’t invest the time to learn how it works, however, and you’ll likely find that it isn’t as complicated as it seems on the surface. There’s a ton of online information that can help traders learn to use cryptocurrency and how to invest successfully. 

Myth #6: Blockchain will change the payment system forever.

Many people believe that the blockchain will replace traditional payment methods in the future. This is only half-true. The blockchain does offer security and it is efficient, so it is likely that it will become a more recognized and accepted payment method as time goes on. However, people will continue to use debit and credit cards alongside it. Bitcoin will not wipe out all of our current payment methods, it will only join them. 

Conclusion

Hopefully, we’ve helped our readers to understand cryptocurrency a little more. It is important to understand that myths and rumors can come from misunderstanding, as many traders haven’t put a lot of effort into learning about these futuristic payment methods. If you hear something about investing in or using cryptocurrency, always do your own research to find out if it is fact or fiction.

Categories
Beginners Forex Education Forex Basics

The Most Harmful & Potentially Costly Forex Trading Myths

As with anything in life, there are a number of different myths that have been created around trading, the thing about myths is that they are not real. A myth is defined as “a traditional story, especially one concerning the early history of a people or explaining a natural or social phenomenon, and typically involving […]

As with anything in life, there are a number of different myths that have been created around trading, the thing about myths is that they are not real. A myth is defined as “a traditional story, especially one concerning the early history of a people or explaining a natural or social phenomenon, and typically involving […]

As with anything in life, there are a number of different myths that have been created around trading, the thing about myths is that they are not real. A myth is defined as “a traditional story, especially one concerning the early history of a people or explaining a natural or social phenomenon, and typically involving supernatural beings or events.”

When it comes to trading there are a lot of them, in fact, there are too many for us to actually go through, but we have looked at a number of them, some you may have heard of or even been told personally, some you may have never heard before, what is important to understand is that these are myths and so they are not actually real, there may be a little truth behind them, but overall they are things that have been made up by someone at some point in time-based on what they see but do not fully understand. So let’s take a look at what some of the myths are.

Trading is Gambling

Trading is gambling, something that you have probably been told quite a few times, this is normally said by those that do not actually have an understanding of how trading works. We can certainly see from the outside why it may look like trading, without having knowledge of how the markets work, it can look a little like it is random movements up and down. When you begin to learn a little more about it, you know that this is not the case, in fact, there are hundreds of aspects to trading that influence the markets, none of them come down to gambling. If you learn, you can spot the things that will cause it to move and can take out a lot of the potential for losses. Trading is based on probabilities and not guesswork.

With Enough Money I Will Be Safe

If you have $100 your account is always in danger, if I have $1,000,000 then my account will be a lot safer. If you are using 0.01 lots sizes on both accounts then yes, your account certainly will be safer, however, are you going to stick to trade sizes that low? The majority of trading strategies are based around risking a certain percentage of your account. If you are risking 1% of your account, for a $100 account this will be $1, for a $1,000,000 account this will be $10,000. You will be able to make the same amount of losses with either account before there is a margin call. (of course, leverage and margin will be slightly different but the idea remains the same). Having more money will not reduce the amount of risk that you are taking. Having a larger balance can allow you to trade with smaller lot sizes in comparison or to risk less 0.5% as an example, but if you stick to the strategies, then you will be risking the same amount, and having more is not necessarily safer.

More Leverage Means More Profits

If we are only looking at the positives, then technically this myth is true if you have higher leverage than you are able to make higher profits if things always go the right way, but what happens when they go the wrong way? If they go against you, you can also make much larger losses and it can potentially put your account in a lot of additional danger. Leverage is a tool to allow you to trade more, but it is something that you need to have an understanding of and to not go crazy with. If you choose an account with a maximum leverage of 1:2000 then you are massively over-leveraging your account and we would expect it to blow at some point as you will be trading far more than your account should be. You should be sticking to modest leverage that suits both your account size and the strategy that you are using.

What Goes Up Must Come Down

While technically true, the questions that need to be asked are when. Sometimes the markets seem to do what they want, everything indicates that it should turn but it just does not want to. The markets can remain on a trend for a much longer period of time than you will be able to remain solvent, the markets will be able to beat you, if you jump into a trade and simply hope that it will turn, you will be on a path to total losses, you need to know when to get out. Do not sit there and simply hope that it will turn, that could be a long way away.

More Indicators the Better

You have probably seen images where people have 100 different indicators on their charts, it looks a little bit of a mess, doesn’t it? It is a good idea to have a number of indicators, they should be ones specifically chosen that suit your strategy, 3 or 4 max should just about do it. As soon as you get into the territory of having 101 different indicators on your charts, you are simply making things too complicated, you cannot properly understand what all of them are saying, many will be contradicting each other and your chart will be a mess. Stick to just a few, too many is just too many, as soon as you start to get confused or it takes more than a few seconds to find and read one, that is too many.

Keep Trying and You Will Be Successful

With a lot of things in life, the more you do something the better you get at it. This is slightly true when it comes to trading, you may get better at what you are doing, the problem with this is that you will be doing the same thing and getting good at it regardless as to whether it is good or not. Trading is more about learning, and not simply doing. If something is not working, constantly doing it will just make you better at doing something wrong, you need to learn why things are not working in order to resolve it and improve. It is also important to note that time spent does not necessarily mean improvement, you could sit for hours in front of the charts and learn nothing, you need to organize and plan your time and learning if you want to be successful.

Emotions Are Your Worst Enemy

Emotions get a lot of bad sticks, you are often told to try and get rid of them when trading, for some this is certainly something that you need to be doing, but not all of them. Emotions are a way to show that you are normal, if you did not experience any stress then there may actually be a problem. You can actually harness things like stress as an indicator that you need to change something and potentially adapt your strategies.

Discipline Will Always Protect You

Discipline is vital when it comes to trading, but it is not something that will keep your account safe on its own. Discipline allows you to stick to your plan, it allows you to ensure that you maintain proper risk management. The problem is that being dedicated and disciplined to something that may not be working does not help you, it will just ensure that you continue to do the thing that is losing. You need to first ensure that you have a working strategy, one that can be consistently profitable, that is then the stage where you need to ensure that you are disciplined, but be sure that you also have the understanding that things will need to change at some point when the markets change, so do you.

There is a Holy Grail Strategy

You may have heard of the holy grail, the one strategy that is better than all the others, well we are sorry to tell you, that this holy grail strategy does not actually exist, if it did, there wouldn’t be hundreds of other strategies, there would be just the one. The markets always change, each trader has a different balance and economic events mean that no one strategy can be successful all the time. This is why it is often recommended that you learn a number of different strategies, as a way to be able to adapt when the markets do change. Do not simply rely on a single one and certainly do not go out there looking for the perfect strategy, you just won’t find it.

You Can Get Rich Quick

You have probably seen hundreds of posts all over whichever social media accounts you use, people promising to make you rich, bad news I am afraid, these are not real. You can actually get rich very quickly, the problem is that you have a 0.000001% chance of it happening. Trading is a very slow process, it can make you rich, but that will be 10s of years down the line, not overnight. Do not go into it thinking that you will be rich, you will overleverage your account and this will only lead to losses. Please, don’t listen to those saying they can make you rich, they cannot and will simply run off with your money.

Complex Strategies are Better than Simple Ones

Sometimes things can get a little too complicated, if you have a strategy that requires you to look at 3 different things or one that requires you to look at 20, people will often think that the more in-depth one will be better, but how long will it take you to look at all 20? And how long will it take you to look at 3? You are far more likely to be able to master the 3 point strategy and to always remember to do them all than you will the 20, when you make things too complex, things will be missed and it will take far too long to actually put on a trade. A strategy only needs to be as complex as it needs to be, do not over complicate them, it will only hinder your trading.

So those are some of the many myths that exist in trading, there are of course more, and there will be more created as time goes on, what is important is that you do not let any of them influence you, some are positive and some are negative, but stick to your own plan, take no notice of them and you will be in a much better position to become a successful trader.