Currency trading also called as valutahandel market is full of urban legends that can harm a trader’s chances at financial success. By knowing some of the major Forex myths, wise traders can avoid any unnecessary frustrations.
The market is rigged
Another one of the most popular Forex myths is that the currency market is rigged. The Forex market the largest in the world and it is likely that if an individual or company takes a non-businesslike approach to financial trading, it will quickly be spotted. Forex is not a scam and even though losses can occur, a fine-tuned strategy can reap financial dividends for the trader, especially during this economic climate. Accepting that losses do occur and developing a strategy that has a slight edge during these market conditions will bring significant returns.
Forex brokers trade against the traders
It is partial truth that bästa forex mäklare who are market makers can really trade against their own clients. It is shame but it may be truth.
But have you ever asked yourself why ? I mean, Market makers don’t need to do this because 65% up to 89% of clients are loosing money trading with Market Makers, this is simply cold hard fact. There are more newbies than serious traders, so why would a broker risk his hard earned reputation and do risky stop loss hunting or price requotation stuff when all they can do is sit and wait until a noobie will loose the money ???
Listen I tell you this…
Nowadays we have over regulated retail fx trading environment in EU and not so much in Vietnam but…
Look at FCA, Cysec and the whole MIFID2 and ESMA crazy stuff.. Do you think some fx company would like to risk their license by doing these dodgy practices ? I mean if they get caught, could cost them lucrative EU market license..
And what about ECN Brokers ?
On the other hand, ECN brokers do not trade against clients because this is technically just not possible for them to do. But I mean how many true ECN brokers do you know ? If I count from the top of my head maybe 3 I know… IC Markets, Pepperstone and XTB ? So be careful before you rush and deposit into ECN brokerage since it can be STP and not true ECN 🙂
Dealing desk is evil
How many times did I hear this on forums! Man you better visit the premises and check if you find dealing desk. If yes, run away!
Well unfortunately that is not truth. Dealing desk is ordinary department of each MM so relax.
Losses are the trader’s fault
Forex trading is rarely a way to get rich quick. Trading takes a level of patience, skill and consistency, as well as a knowledge of the market. Losses are not the trader’s fault and are down to market conditions, unless the trader has failed to follow his plan through. The possibility of loss creates opportunities for other winners. Without a small level of risk, no financial return is possible.
I know nothing about trading, I am doomed to fail
This is simply not true! One of the most irrelevant arguments against trading I used to hear from noobies. Why on earth do u think that only experts can win in trading ? In fact, researche studies show, that most of the time, noobies hit the gold and beat the market including highly paid professionals who are employed by Hedge Funds.
I can make money daytrading on forex
BULLSHIT !
This is a myth!
Almost noone can make money daytrading., well maybe bank daytraders can but that is whole different story.
It is just not possible for you and me, because there are so many factors that come into this game. You can be profitable daytrader, but you will eventually fail in longterm,
Bear this in mind, and watch below video by Andrew the owner of Learncurrencytradingonline.com
A more complex fx trading strategy is better
When currency traders begin with a simple strategy and see small returns, they often change their gameplay, hoping that they will increase their financial return if they evaluate a few more variables. This is often not the case. Profits are usually made at the margin, where even the most successful traders only win slightly more than when they lose. Stick with your original system and focus on managing your money instead.It’s best to develop a strong trading plan that has been tested by yourself. Always take responsibility for the failures and successes of your plan.
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