The Forex market is not immune to rumors, myths and urban legends. For a beginner entering the trading market it can be easy to be distracted by these tall tales. Here are just a few that may be circulating near you:
You Can Get Rich Quick Trading Forex
This is probably the most common, and most untrue of the myths out there. Sure, you will be able to make some pretty fair income trading in the foreign currency market but it will not be quickly. If anything, you are making a mistake entering Forex based on this single myth. Traders make money in Forex by doing a great deal of homework related to trends and by making smart decisions. Gains made with each trade will be minor in comparison to “get rich quick” proportions but each will get you closer to your long-term goal. If you enter Forex looking long-term, you have the right attitude to win in the market.
The Market Is Rigged
Just because you or a fellow trader has a string of losses does not mean the market is rigged and weeding you out. The currency market is often far too volatile to be rigged. While it may be easy to blame everything and everyone around you for a bad trade, you have to be prepared to take the good with the bad. As you gain experience, you will see a difference in your success rate. None of this is rigged.
There Is A Predictable, Scientific Pattern To Market Movement
If you have ever seen or received a piece of communication from a company stating they have cracked some kind of secret pattern or method or cycle to Forex trading don’t believe it. It’s a lot like saying there is a scientific pattern to how lottery numbers are drawn. Everything is random and the Forex market operates the same way.
The Experts Are All The Big Winners
If you are a new trader and you’ve found yourself spending time with a so-called Forex expert, you may want to do yourself a favor and reduce the amount of time you listen to them. That’s because there are a lot of ‘experts’ out there. Even the most experienced traders are correct about half the time. Your local TV weatherman has about the same odds predicting the weather and he is also considered an ‘expert’ in his field.
Ignore The Forex Myths
You would do yourself a lot of good to not pay much attention to the rumors that are out there about Forex trading. The best thing you can do is homework of your own where you will learn how to properly execute trades and what trends to follow rather than hoping to stumble across a magic formula that does not exist in any way whatsoever with Forex trading. Plus, if you find someone trading that you can trust, ask them their opinion of the rumor currently circulating online related to Forex trading.