Swirling Myths about Forex Trading

Someone who is saying forex trading is a way to get rich quickly is misleading. Whether you are a newbie or experienced forex trader, you must have heard of it at some point. In fact, there are certain myths about forex trading that always swirl around no matter what. With an average turnover of trillions per day, the forex market is the largest and most liquid market in the world. Therefore, it is important for investors or traders to focus and not fall for some misconception that may distract them from their forex goals.

In this article, we’re going to reveal some of the swirling myths about forex trading which become popular based on some random events and no grounds whatsoever.

5 Common Myths About Forex Trading

Like we said before, like any other trading, forex trading has its share of myths that can potentially affect anyone – novice or experienced, irrespective how long he/she has been trading. But, by the information, you can simply avoid these myths and develop your forex trading strategy myth-free.

Below we’ve mentioned some popular common myths about forex trading which will be helpful for those who are trading or planning to trade in the forex market.

Myth #1: Forex Trading is a Way to Get Rich Quickly

A trader who is trading in financial market must have heard of this, “Forex trading is a way to get rich quickly”. Even you’ve heard of it – whether it is your neighbor, relative, friend, colleague, or some well-wisher. This line brought many retail investors into this market on a quest to get rich quickly.

Unfortunately, it is wrong indeed!

Right here, right now, I will be honest – whether it is forex trading or stock trading, you can’t become rich overnight. Trading needs knowledge, skills, years of practice, and patience to trade in the market. Even then, they don’t get out of it by making huge profits enough of a lifetime. On the contrary, they make trade after trade. All those people who believe that forex trading is a way to get rich quickly must understand that it is trading platform, not gambling where you can bet all your money and get out it.

Myth #2: Forex Trading is Easy

This is another very popular forex trading misconception that is common in newbie traders who actually believe that forex trading is easy. I don’t know from where they get this idea but it is the farthest thing I ever heard from truth. On the basis, if such misconception many traders jump into forex market hoping to make tones overnight. Reading a book or two and opening and downloading the software looks easy but succeeding and making a profit out of it is a whole different thing.

Another reason that led these traders to believe that forex trading is easy that, is that the marketing strategies used by some companies to make you open and fund your trading account.

The volatility in the currency pairs makes trading forex trading so difficult that even the predictions of experienced professional traders go wrong. This is how the forex market works. Sometimes, all your analysis and research on the trend of currency pair become waste when the market reverses or go sideways.

Therefore, currency trading is not as easy as some people made you believe. Most professional traders have spent years and years learning the chemistry of forex trading.

Myth #3: You Need a Lot of Money to Trade Forex

Back when the online forex trading was unavailable, average retail investors couldn’t have direct access to the forex market unless they happen to be very rich and have a high net worth. Since then it became a misconception among retail investors that you need a lot of money to trade in the forex market. However, with the development, there are now online forex trading platforms or brokers that allow you to trade in forex market just with a computer or laptop with a decent modern internet connection.

Myth #4: Need Economics Degree to Trade Forex

This one is quite funny! – Some retail investors are in the belief that to trade in forex they need the degree in economics. However, that’s not really true! One must have the knowledge of world economics and understanding of general economic concepts but there is no such thing as ‘Need economics degree to trade forex’.

The thing is, many forex traders come from diverse economic backgrounds but there are also many professional traders who have already proved that you don’t necessarily need an economics degree for this.

Myth #5: Need to Monitor Forex Trades All Day

There is one common misconception among the forex traders especially newbie traders that forex traders have to consistently watch the monitors of their computers all the time. It is probably due to the fact that the forex market trades on a 24-hour basis. But, that doesn’t mean you need to watch the market 24 hrs to make the profits.

It has been noticed that many working professionals who have regular jobs do trade in the forex market and manage to allocate some time from their schedule to execute trades at the end of the day. In doing so, they still make good earnings. So, it is not mandatory to watch your computer screen all the time.

Hope, you liked our list of swirling common myths about forex trading. If you have any query or would like to add something then please don’t forget to mention in the comment section below.