As a Forex trader, you will come across several beliefs that are hard to prove and disprove. Starting off, all these myths will create an environment of confusion, and for a newbie, several can be misleading! Some things are better learnt with experience, but in Forex that can be costly. Once you set off on the wrong foot, regaining control won't come easy. After steering away from the plethora of wrong beliefs, you will be able to embark on an indulging journey to achieve currency trading success!
Here are the 4 Forex trading myths broken down:
 |
| Top Myths of Forex Trading in South Africa |
1) Money Comes 24x7 in Forex: Agreed that foreign exchange functions 24 hours a day, several traders house this belief that money can be made on all timeframes. Market volatility plays a substantial role in deciding whether profits are made or losses; and currency markets; even though they function round the clock, see fluctuating volatility. Each currency has different behaviors across different time-zones, and during peak hours, they are most profitable.
2) Forex = Money: On the outset, everybody thinks that a currency trader mints in millions. This is undoubtedly the biggest Forex trading myth. The truth is quite contrary; Forex traders lose a lot of money, trying to make money! Currency exchange is one of the most risky fields in trading; the leveraged nature accompanying Forex makes it an incredibly risky endeavor for traders, with a potential for losing more than just their investment capital.
3) Complicated Strategies Guarantee Success: This saying can be come across in several fields, not just trading. While a Forex trading strategy is of paramount importance, there is no necessity for it to be complex. Smart work beats hard work; likewise, a strategy, though simple, can get you a good winning when applied properly, while an elaborate trade plan might not yield just as well!
4) Forex is Like Gambling: A preposterous Forex trading myth, which is surprisingly believed by many today! Gambling is more reliant on luck and chance, while Forex trading relies on strategies and proper planning. Luck might give an occasional boost, but solely depending on it to turn a trade around will never work. Foreign exchange is a domain that requires constant analysis and precise implementation of the same.
Several such myths leave traders pondering and confused while Forex trading in South Africa. With time and experience, clarity can be obtained, and you can sail through to victory! Call WesternFX today, and get yourself a world-class FX broker to assist through all your trades. With our experienced brokers by your side, success is assured!
No comments:
Post a Comment