Everyone that is involved in Forex Trading for awhile would have all heard these 3 misconceptions about Forex Trading, but beginner traders continue to fall for them. These are also some of the reasons why many Forex Traders end up going broke.
So how can we avoid these common traps and make money from Forex Trading?
Firstly lets look at the 3 areas to avoid when you are starting out Forex Trading.
Making Regular income and Profit:
This is misconception number 1.
Think about this for a moment how can you make regular income from something that changes as frequently as the Forex Market. No matter how great the system is the market simple changes all of the time, how often have you been in a well trending trade only to see something strange occur and a nice profit turns to a break even or worse a loss? So the next time you see or hear of someone saying make x% profit every month's run!
Ability to Predict Forex Prices in Advance
This is misconception number 2.
This is the biggest crowd puller, think about it can you see into the future? No. No matter how great the theory, how well it has been back tested you still cannot have a theory that works 100% of the time. Think about it if there was a theory that worked 100% of time we could predict future results. So the theory would need to take into account, all interest rates cuts and rises, speeches from the banks and monetary authorities as you can see highly unlikely. No Impossible.
Make Massive Profits minimal Exposure:
So how can we avoid these common traps and make money from Forex Trading?
Firstly lets look at the 3 areas to avoid when you are starting out Forex Trading.
Making Regular income and Profit:
This is misconception number 1.
Think about this for a moment how can you make regular income from something that changes as frequently as the Forex Market. No matter how great the system is the market simple changes all of the time, how often have you been in a well trending trade only to see something strange occur and a nice profit turns to a break even or worse a loss? So the next time you see or hear of someone saying make x% profit every month's run!
Ability to Predict Forex Prices in Advance
This is misconception number 2.
This is the biggest crowd puller, think about it can you see into the future? No. No matter how great the theory, how well it has been back tested you still cannot have a theory that works 100% of the time. Think about it if there was a theory that worked 100% of time we could predict future results. So the theory would need to take into account, all interest rates cuts and rises, speeches from the banks and monetary authorities as you can see highly unlikely. No Impossible.
Make Massive Profits minimal Exposure:
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