Whether you are an expert trader or new in the forex market, many myths about the forex market will revolve around you. These myths can affect anyone, no doubt how much they have been trading.
Forex trading is an easy and simple way to make money
All buying and selling in the forex market are happening online and with easy access to online wealth resources and the internet. It looks like a simple way to earn money. But succeeding and making money is difficult in the forex market. Forex is a complex market and traders can make money regularly but it is challenging and risky.
Traders should educate themselves about trading, practice on building different strategies, and view forex trading as a business or work. They should work hard to reduce risks and become successful.
Forex markets are fair
One of the worst myths that could be heard about the forex is how forex has the big advantage of being a fair market. People say that there is no inside cfd trading in forex because the market is so big and at the same time all news is released publicly. This myth incites the new traders to place their orders after the release of any public news like Non-Farm Payrolls.
Major institutions, professionals, and banks know the risk of predicting news outcome. Instead, they wait and allow the price to come to them. Yes, a trader can make easy money with the quick moves and playing with news statement, but doing it, again and again, might not pan out.
Forex trading is controlled by central banks
It is true to some extent that government and central banks control currencies prices but as a trader, you are not in the position to pitch yourself to contradict them. You are there to take advantage of those edges by following your strategies and trade according to the market.
The truth is the forex market is too volatile and foreign exchange rate change so frequently, so it is impossible to rig the market. So as a trader, instead of blaming central banks and government, you should educate yourself and learn how to gain profits in the current market conditions.
Only one correct way to trade
Many people think that there is a unique or magic strategy to trade on the forex trading floor and make millions. It not true, you can simply view many strategies and systems that are claiming 100% perfect for forex trading by a simple web search. But the truth is these strategies and systems are there to minimize the losses and risks.
It is in the knowledge of every trader that it is impossible to make money without risk. Experts are always changing their strategies and adapt according to the market conditions.
Market hours of Europe provide the best opportunities
Another trading myth is also revolving around that best trading arrangements only take place during European market hours. European market hours are indeed the most liquid times of the day but it is not the only time to trade. There is no need to sit in front of the screen all day for trading.
No doubt European market hours offer many concrete opportunities, but if you learn to read and analyze the charts and discover your way to enter ahead of time then set your trades and forget and let them play, you will catch the opportunity.