Forex Myths - 3 Common Ones That If You Believe Them Will Destroy Your Equity
by kelly Price
Here are 4 common myths that most new forex traders make and end up losing all their money quickly. If you fall for any of them, you will end up a loser. Let's look at them..
Myth
You Can Follow a Forex Robot with a Simulated Track Record and Win
Many traders are just naïve or stupid and believe if they invest 100 dollars in a forex robot they will get a guaranteed income what they end up getting is a guaranteed loss. Quite simply, these traders don't look and see the robots come with paper simulated track records and gains NOT real ones!
There simply made up knowing the past we can all do that but trading without knowing the price closes is vastly different.
Myth
Buy Low Sell High is the Aim of Successful Forex Speculation
It's a well worn phrase and its dead wrong if you try and buy low and sell high, you will miss most of the big moves which actually start and accelerate from new market highs and lows.
All the best trends come from these breakouts and if you don't trade them, you will miss the best opportunities.
Myth
You Need to Predict to Win
This really goes with the above myth. Traders get obsessed with predicting tops and bottoms but of course if you are predicting, you are hoping and guessing and that won't get you very far in life let alone forex trading. Trade the reality of price change and never predict if you want to win.
Myth Intelligence and Hard Work Bring Success
Not at all, you don't need to be intelligent to win and clever people who think they deserve success end up disappointed. Furthermore, hard work doesn't guarantee success. The only criteria you are judged on is how much money your trading signal makes and it doesn't matter if you took 5 minutes over it, or 5 hours it's the result that counts.
Myth
Forex Trading is Easy
Many vendors of robots, day trading systems and forex signal services promote this myth because it's in their interest but of course it's not easy, if it were 95% of traders wouldn't lose. Only 5% win and make really good money from forex trading and if you think trading is a "walk in the park" the market will hand you a lesson in respect.
The rewards are so high because it's not easy, forex success is achievable but you need a strong forex education and the mindset to succeed.
The above 4 are not the only forex myths traders' fall for but there very common and if you believe them your trading account won't last long.
แสดงบทความที่มีป้ายกำกับ Forex Myths แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ Forex Myths แสดงบทความทั้งหมด
วันศุกร์ที่ 18 กรกฎาคม พ.ศ. 2551
วันพุธที่ 18 มิถุนายน พ.ศ. 2551
Forex Myths - a Top 10 Which to Avoid Or You Will Lose!
Forex Myths - a Top 10 Which to Avoid Or You Will Lose!
by kelly Price
Most novice traders fall victim to these top 10 forex myths and if you believe any of them then you're destined to lose...
1. Forex Robot Track Records are Real
How many do you see that are? Not many most are meaningless simulations in hindsight on paper knowing the closing prices and traders wonder why they don't get rich for their few hundred dollars invested. Some robots work but always beware of the back tested track record and remember - if you go to shop they don't accept imaginary money, they accept real money!
2. Forex Day Trading Works
Well I see lots of people who claim it does but never see the evidence; normally you get a paper track record in hindsight. Fact is you cannot measure what millions of traders will do in a few hours so don't try - all volatility within a day is random and that's why you are destined to lose
3. Forex Scalping Works
Simply a more extreme way of trading than the above - lets try and assume what millions of traders will do trading a chart measured in minutes - umm.
4. You can Predict Forex Prices
Try it and you will find you are as accurate as your horoscope and its less fun. Of course, people will tell you there is a scientific theory of market movement - well if there was, we would all know the price in advance and there would be no market. Markets move because of uncertainty NOT certainty.
5. You Can Trade the News
If this is the case why do markets rally when there most bearish and collapsese when there most bullish? Simple, it's not the news that's important it's the way investors perceive it that is and the event by itself is unimportant - you need to consider markets move on sentiment not facts.
6. Complex Forex Systems Beat Simple Ones
If this is the case why do we still have the same ratio of losers to winners we did 50 years ago with all the advances in technology and forecasting? Complex systems are not better than simple ones, as they are not so robust and have more elements to break, in the brutal real world of trading.
7. The More You Trade the More You Make
Day traders and scalpers believe this and lose. Fact is the big high odds trades don't come around very often and you need to wait for them. You don't get rewarded for trading often, you get rewarded for being right with your trading signal and that's it.
8. Your Risk is Your Target Minus Your Stop
No its not - that's in your head and your opinion and nothing more. Most traders do this and most lose there is no correlation between the two.
9. Forex Trading is Easy
Easy to learn yes , anyone can do it but most lose. This is because forex trading is a unique combination of method and the mindset to accept responsibility, have confidence and trade with discipline. If you think forex trading is easy, think again. It's not and that's why most traders fail. Sure you can make a lot of money, but you need to pay your dues and get the right forex education.
10. You Can Follow Someone Else to Success
Just as in other ventures in life you cant. If a person is telling you he can make you rich, with no effort, chances are he is not telling the truth. In forex trading you have to accept responsibility, trade with confidence and discipline and you're on your own.
The above forex myths are all common and you need to avoid them, to win and enjoy long term currency trading success. So, get the right forex education, adopt the right mindset work smart and you can make a lot of money and enjoy a great second or life changing income.
by kelly Price
Most novice traders fall victim to these top 10 forex myths and if you believe any of them then you're destined to lose...
1. Forex Robot Track Records are Real
How many do you see that are? Not many most are meaningless simulations in hindsight on paper knowing the closing prices and traders wonder why they don't get rich for their few hundred dollars invested. Some robots work but always beware of the back tested track record and remember - if you go to shop they don't accept imaginary money, they accept real money!
2. Forex Day Trading Works
Well I see lots of people who claim it does but never see the evidence; normally you get a paper track record in hindsight. Fact is you cannot measure what millions of traders will do in a few hours so don't try - all volatility within a day is random and that's why you are destined to lose
3. Forex Scalping Works
Simply a more extreme way of trading than the above - lets try and assume what millions of traders will do trading a chart measured in minutes - umm.
4. You can Predict Forex Prices
Try it and you will find you are as accurate as your horoscope and its less fun. Of course, people will tell you there is a scientific theory of market movement - well if there was, we would all know the price in advance and there would be no market. Markets move because of uncertainty NOT certainty.
5. You Can Trade the News
If this is the case why do markets rally when there most bearish and collapsese when there most bullish? Simple, it's not the news that's important it's the way investors perceive it that is and the event by itself is unimportant - you need to consider markets move on sentiment not facts.
6. Complex Forex Systems Beat Simple Ones
If this is the case why do we still have the same ratio of losers to winners we did 50 years ago with all the advances in technology and forecasting? Complex systems are not better than simple ones, as they are not so robust and have more elements to break, in the brutal real world of trading.
7. The More You Trade the More You Make
Day traders and scalpers believe this and lose. Fact is the big high odds trades don't come around very often and you need to wait for them. You don't get rewarded for trading often, you get rewarded for being right with your trading signal and that's it.
8. Your Risk is Your Target Minus Your Stop
No its not - that's in your head and your opinion and nothing more. Most traders do this and most lose there is no correlation between the two.
9. Forex Trading is Easy
Easy to learn yes , anyone can do it but most lose. This is because forex trading is a unique combination of method and the mindset to accept responsibility, have confidence and trade with discipline. If you think forex trading is easy, think again. It's not and that's why most traders fail. Sure you can make a lot of money, but you need to pay your dues and get the right forex education.
10. You Can Follow Someone Else to Success
Just as in other ventures in life you cant. If a person is telling you he can make you rich, with no effort, chances are he is not telling the truth. In forex trading you have to accept responsibility, trade with confidence and discipline and you're on your own.
The above forex myths are all common and you need to avoid them, to win and enjoy long term currency trading success. So, get the right forex education, adopt the right mindset work smart and you can make a lot of money and enjoy a great second or life changing income.
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