Now that the global economy is being drained by current financial crisis, more and more people are turning to forex trading because they have a notion that profit is abundant in this market during these troubled times.
Forex gurus say that this is actually true. Good opportunities are indeed available with the faltering economy. However, there are some misconceptions about forex trading that can lead to disastrous results.
Here are some forex trading myths that will always be tagged as a myth:
Profit naturally comes when you trade forex.
Why is it a myth? You have to earn your own profit in forex trading. It takes a lot of time, hard work and keen observation of economic developments so that strategies can be planned and executed correctly.
A forex trader needs to be "on" 24 hours a day, 7 days a week.
Why is it a myth? Forex traders can trade successfully in as little as two hours a day. Keeping to a consistent strategy means that traders can establish and liquidate their positions efficiently.
To trade forex, you must pay attention to each economic indicator.
Why is it a myth? Says one forex trader, inflation is the key factor in all successful forex strategies. Once you track inflation indicators, then you would be able to plan your strategy. Since inflation affects interest rates therefore interest rates will affect currency positions.
So what other myths are out there in forex trading? Here are some websites that point out fact from a bunch of misconceptions.
Forex Price Movement - Myth of Predicting Prices
In past few years computer programmers have started to build up software programs, using sophisticated algorithms, to predict Forex price movement for making big Forex profits. Let's take a look at them...
Forex Trading: Forex Price Movement - Myth of Predicting Prices
The move toward computerized trading has seen a huge rise in the number of Forex robots sold and traders are looking at them to give them profits but they end... Source: Forex Trading: Forex Price Movement - Myth of Predicting Prices.
Forex Trading Myths - The Biggest Myth of All That Causes Traders...
There are numerous Forex myths but the one enclosed is perhaps the biggest myth of all and one that most novice traders fall for, if you make this mistake, you are odds on to lose so lets take a look at it. The myth is that forex...
Predicting the Forex Market, a Myth?
Since I started trading, I have met a number of experts who teach courses and give seminars somehow giving the hint of having certain power or gift to predict the forex market. I have used most of their techniques in order to predict...
Forex Myths - 5 Myth's Novice Traders Fall for and Lose - Meadow...
Forex Myths - 5 Myth's Novice Traders Fall for and Lose Meadow Free Press, ID - 2 hours ago. Will Rodgers once said "I only believe what I read in the papers" now he was joking but huge numbers of novice traders try and trade news...
Four Myths You Ought to Avoid in Forex Trading
Of course, its okay to know what these myths are but it doesn't mean you have to believe them. One forex myth say that in forex trading, there will always be somebody who can give you success. This is basically not true....
5 Forex Trading Myths
This is clearly a myth. Simple things work better in life as well in Forex. If when you're defining your strategy you use 3 indicators, I bet most of the times there will be one that goes against the others....
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