There are many stories and facts about the Forex market, but not all of those are true. When investors appear in the field, he gets lots of misinformation from others because different types of people interpret the market differently. So, you have to decide which you will believe and which you will not believe.
[Top 4] Trading Myths Every New Trader Should be Careful
People need to collect the right information so they do not fall into the trap of the myths. Let’s learn about four myths that all of you have heard.
Forex Provide Fixed Monthly Interest
Forex will not provide monthly interest. How much money you earn from the market totally depends on the person’s own capability. When people are able to manage the risks properly, they will be able to increase their income. If any month, people are unable to control the risk and fail to have a winning streak, they will not get any money from the ETF market. By relying on this myth, if someone decides to leave their job for good, and hope to get income from the market, may face great difficulties surviving in this field.
Forex is about Becoming Millionaire Overtime
Through a Forex broker, the investor can easily trade. The field is not complicated but this is difficult to make money. If you are not entirely prepared, you will not be able to earn. However, no such method can make the trader millionaire overnight. Here, the person has to invest time and energy. He also needs to develop himself. Even after this, there is no surety that you will able to be successful. When traders in Hong Kong will do every task smoothly, the success rate will be increased but this will take a lot of time. Many millionaire traders use Saxo’s Hong Kong broker to trade with a big lot. But they have achieved this state in their lives over a period of time.
People can Become Expert by Using Demo Account
If a plan provides good outcomes in the virtual field, this does not mean that this will be successful in the real field. Practice through a demo account is necessary to experience the functions of the real field. But, this will not give any surety that this practice will ensure the ultimate success. In the virtual field, the investor will not understand the psychological complications. Here, they trade in a risk-free environment so no emotional components have emerged. In live trading, you will suffer from lots of emotional complications, so you will not be able to take your predetermined steps properly. Sometimes demo account builds false confidence among the investors. People should not avoid practicing in the demo account. But you should not be excessively optimistic.
Success Depends on the Luck
Actually, success does not depend on luck. Many newbies think that if they are lucky, they will be able to earn money. So, there is no necessity for developing skills and acquiring sound knowledge. Here, luck has no work. If you are not skilled enough, your luck will not able to save you. Most of the time, when the person faces failure, he tries to blame luck. He also tells others the same thing. So, new traders believe this fact and do not want to give time in learning about the market. Hard work is the only thing that will help people to become successful in the Forex field.
In the real field, an investor is required to choose the right broker who can help him in the transaction process. Newbies try to gather information to forecast price movements. You should remember that this is not necessary that all news you have listened to are true. So, people should not believe in false news. You need to collect information from successful people so that you can get an accurate picture of the market.