Forex: Myths and Reality

The difficult but in-demand profession of a trader acquires more and more myths every day. We propose to get acquainted with the most popular of them.

Forex – is it a fraud or a swindle?

Most often such rumors are spread in networks by people who unfortunately have become victims of swindlers. On the financial market at the moment there are few companies whose purpose is to deceive their clients. Trading has become a serious and responsible profession, not a fraud and a sham. If you want to choose a reliable broker, use

Winning on Forex depends only on chance

To some extent this is true, but forex is not a casino game. If capital movements were easy to predict, traders would turn into multi-billionaires in a few months of work. A professional can’t always predict the market situation, so you have to learn how to survive a loss in order to make more profit later on.

Only 5% of Forex beginners make profit

In forums there is a version that 95% of traders work at a loss. However, we should not forget that in other professions also some newbies become “stars” from the first days of work. The only undisputed fact is that practically all beginning traders lose their first deposits.

Only a person with higher financial education can become a trader

Trading currencies does not require any special education. To become a successful trader you need:

  • lively mind;
  • analytical skills;
  • developed intellect;
  • the ability to restrain emotions;
  • the ability to react quickly to changes in data and to remember large amounts of information.

It is impossible to be trained in trading without an innate talent

Practice shows that average abilities are enough to master a new profession. Patience, assiduity and self-discipline are the key to successful Forex trading.

The average person does not have a huge amount of capital, necessary to start trading on Forex

Even having 100 dollars one can become a trader, because now for the time of transaction the brokerage company credits the necessary sum for the deposit. After closing the transaction the credit is canceled, and the trader gets the profit without any Forex commissions.

Trader constantly lacks of capital

Incorrect trading and impulsive decisions lead to a number of unsuccessful deals which lead to a real financial collapse. A trained and technically savvy businessman calculates all the risks and takes for granted the fact of losing trades.