The majority of these sources do not tell you about the reality of managing, learning, studying, and strategies that need a considerable endeavor for becoming a successful forex trader.

Most of these people are talented, intelligent people who can handle extensive trading; however, they are incapable of managing foreign exchange trading not because of the lack of intelligence but because of inaccurate information that they have received from some false sources.

In the following paragraphs, some of the myths could be deadly dangerous for gaining prosperity in the forex market. Knowing them gives you the power to support your business more effectively and avoid the risk of bankruptcy, especially when you are a new forex trader with low experience.

The mythology of forex trading contains myths such as:. The first step in achieving the truth behind forex trading is identifying its mythical points. In this regard, you can see the reality of this competitive market. One of the essential requirements of foreign exchange trading is to be realistic.

Too much optimism or too much pessimism is going to lead you to nothing, just failures. Nothing like discipline is essential for a forex trader. If you want to succeed in forex trading, you must not take the myth of the easiness of forex trading seriously. So, it would be best if you tried hard to increase your knowledge about this challenging trading, have a plan for each of your transactions and stick to them until the end. So, forex business is not an easy path to make money faster.

It is a slow path to make money that needs to learn the forex trading techniques and practice them. The other reality about forex trading is the amount of capital you will start your transaction with.

You cannot make a ton of money out of the tiny amount of capital and do not believe those who speak dreamily about making a massive profit with a small deposit; because, in reality, you are going to make money in place of giving money.

Unfortunately, from the beginning of the modern era until now, consumerism has been an integral part of various communities. Consumerism has crawled in every aspect of our lives, even in forex markets. Some institutes are creating a sense of need to buy their services, including forex training courses and strategies.

Although some courses are helpful in general, the others are specifically related to one of the trading strategies. Every trader could have a unique path to success, consisting of the timing, the type of analysis, and using different kinds of trading tools.

As mentioned above, every trader could have their habits and approaches having fascinating transactions. Note that the forex market is so vast and widespread that your financial conditions mean nothing to it. In other words, it is not essential for a market to how much money you have and how much you earn from transactions. These things play crucial roles in trading, but not for markets. If anyone could actually predict them, then they would be a billionaire, but alas, this is not a thing and no one is able to do it.

Choosing the right broker when trading is vital, it needs to be one that you can trust, and that has a decent reputation. What many people will tell you will be to go for a regulated broker because they are safe, but are they really that safe? Well yes and no, the only thing that regulated brokers really offer in terms of safety is protection for your money, that is one of the requirements of the regulation, the thing is, some unregulated brokers have also protected your money.

Go with a broker with good reviews and a good track record, not one just because of their regulated status. It should also be noted that there are a lot of different regulations, some far better than others, so be sure to check which one your broker is regulated under before assuming what protections may be there.

Having said that, some people have grown it, but the initial stages take a lot of luck to get through with such a small account balance. Losses are as much a part of trading as a win, in fact when you start out you will most likely have more losses than wins. Being able to deal with them and bouncing back from them is one the most sought after traits when it comes to being a trader. When you go into trading, you need to have an understanding that there will be a lot of losses, small ones, large ones, whichever ones they are, they will be there.

So those are some of the truths about trading and forex, there are of course other things that you hear which may not quite be the truth, you will always hear the exaggerated truths from people who enjoy trading or want to get their hands on your money. We hope that we have opened up your eyes a little bit, trading can be incredibly life-changing and rewarding but do not get ahead of yourself and do not take things for granted. Work hard and you will be able to be successful. Save my name, email, and website in this browser for the next time I comment.

About Us Advertise With Us Contact Us. Forex Academy. Home Forex Education Beginners Forex Education The Honest Truth About Forex Trading. RELATED ARTICLES MORE FROM AUTHOR. Why Forex Traders Must Value Their Time. Determining the Strength of the Market by Analyzing the VSA. While there is certaintly scammers within the forex market, the forex market is not a scam and a market anyone with a computer can learn to trade.

People trading the forex market range from large national banks through to small retail traders and your typical mums and dads. This is why the forex market is typically known as the wild west.

It is a zero sum game which means that for someone to make money trading forex, someone needs to be loosing on the other side. Large banks and corporations are not fans of losing and will do whatever they can to squash the little fish and the typical retail trader.

On top of this the forex market is attractive to smaller traders due to the leverage available to traders. Leverage allows traders with a small sum of capital to be able to borrow money from brokers to allow them to take part in larger trades.

This means that traders are able to make more money for winners, but also means that they will lose more money for their loses. The low barriers of entry, combined with the endless scams online and large banks makes the forex market a difficult market to trade for those who dont know what they are doing.

This is why its extremely important to understand what scams are out there and what to avoid when learning to trade forex. A signal service is a forum where a head trader will post their trades to allow for people to piggy back off the trades being taken. You will typically pay a large subscription fee to have access into the signal service. Not all signal services are scams, however you are really not learning how to correct trade the market when you are copying others trades.

From the outside, trading can look a little secretive, and without an actual understanding of it, when someone tries to tell someone else about what it is and how it works, it often goes straight over their head. This is understandable due to its complication and the amount of information that is available out there, all giving slightly different views and opinions on it. What we do often get though, is people giving the more glamorized version of what trading and forex is, they seem to only tell others about all the wins, the profits and the excitement, not all the other parts that also come along with it.

You are going to tell them why you like it in the hope that they then also like it or can see why you like it.

If you start or end the conversation with the negatives, they are often going to remember that and be put off. So we are going to be looking at some of the truths of forex trading, some of the things you may not have been told as well as removing some of the sugar coatings that may have been put on. One of the things you may well have heard is that you can become rich overnight with trading, well maybe not overnight, but it has been made out to be quite a quick process.

The truth is, it is not, in fact, it is a marathon, more than a marathon even. If you go in with the idea that you will be able to make a lot of money quickly, you will only be left with disappointment and even potentially some losses. It takes a lot of time to learn and an even longer period of time to become profitable. You need to have the expectation that you will be doing this for at least a year before you have any sort of profits, it is a long process, so do not listen to those that say they make a lot each day, they are either exaggerating their results or just simply lying.

Of course, there are some that make hundreds each day, but they either have huge balances or have been doing it for many many years. People just mention their results and how well they are doing, they do not tell you that they had to risk quite a lot to get it.

New rules came out for posting on social media to say that people need to display text about the risks, this was simply due to people losing money because others did not tell them of the risk and just the rewards. There is a risk, a lot of it, especially if you do not know what it is that you are doing.

Do not trade with any money that you can not afford to lose. The new craze that has entered the trading and forex world is no hands trading or copy trading. This is where you simply copy the trades that someone else, more often than not described as an expert whether they are or not you will never know and so you just deposit your money, sit back, let them trade and you get the profits.

The same goes for Expert Advisors, there are lots out there that allow you to set them up and just leave them. The problem with this is that the majority of people using them are people who have no knowledge of trading. You need to have an understanding of how it works and also be able to step in should things go the wrong way, total hands-off trading is just not a thing. No matter what anyone tells you, you cannot predict the way that the markets will move or react to different news events.

Sometimes it does the complete opposite of what the logical move would have been. No one is able to predict what it will do, there are things that you can look at and analyze which can give you a better idea of how it should move during normal trading conditions, but again, this is not a certain thing.

If anyone could actually predict them, then they would be a billionaire, but alas, this is not a thing and no one is able to do it. Choosing the right broker when trading is vital, it needs to be one that you can trust, and that has a decent reputation. What many people will tell you will be to go for a regulated broker because they are safe, but are they really that safe?

Well yes and no, the only thing that regulated brokers really offer in terms of safety is protection for your money, that is one of the requirements of the regulation, the thing is, some unregulated brokers have also protected your money. Go with a broker with good reviews and a good track record, not one just because of their regulated status.

It should also be noted that there are a lot of different regulations, some far better than others, so be sure to check which one your broker is regulated under before assuming what protections may be there. Having said that, some people have grown it, but the initial stages take a lot of luck to get through with such a small account balance.

Losses are as much a part of trading as a win, in fact when you start out you will most likely have more losses than wins. Being able to deal with them and bouncing back from them is one the most sought after traits when it comes to being a trader.

When you go into trading, you need to have an understanding that there will be a lot of losses, small ones, large ones, whichever ones they are, they will be there. So those are some of the truths about trading and forex, there are of course other things that you hear which may not quite be the truth, you will always hear the exaggerated truths from people who enjoy trading or want to get their hands on your money. We hope that we have opened up your eyes a little bit, trading can be incredibly life-changing and rewarding but do not get ahead of yourself and do not take things for granted.

Work hard and you will be able to be successful. Save my name, email, and website in this browser for the next time I comment. About Us Advertise With Us Contact Us. Forex Academy. Home Forex Education Beginners Forex Education The Honest Truth About Forex Trading. RELATED ARTICLES MORE FROM AUTHOR. Why Forex Traders Must Value Their Time. Determining the Strength of the Market by Analyzing the VSA.

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There is an upside in this market, and it has its hardships. The truth is, it is not, in fact, it is a marathon, more than a marathon even. They show you the glamorous lifestyle it is and how much money they make without teaching you any substance behind how they trade and their strategies. One of the things you may well have heard is that you can become rich overnight with trading, well maybe not overnight, but it has been made out to be quite a quick process. The software is created by Dennis Buchholz, a Germanian trader and the CEO of FX Tech Group.

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