Only God could reveal to us the number of times you have partially planned your unsteady interest and hindered preparation in learning and earning with Forex Trading. Are we certain we will figure out the answer if we asked? You have probably lost count personally-the procrastination comes with a reigning stubbornness. Never mind with the numbers.
Many Nigerians unwittingly believe Forex Trading is all about trading and making money. Ask any of them to explain what they will be trading, earning and how it will work, then you would be hushing some part and the other fraction will explain what gambling basically is. Some of them believe Forex is completely cryptocurrency. You can evidently make money with both platforms as they deal with volatility in price. Mostly, traders focus on currency pairs (EUR/USD, USD/JPY) in Forex as their trading means. In cryptocurrency, there are thousands of crypto assets investors can choose at a time.
Forex Trading directly means exchanging currencies with other foreign currencies for trading, commerce, tourism, and other international transaction to take place. If a Spanish woman will like to explore the mythical and historical Opa Oranmiyan (The Staff of Oranmiyan) in Ile Ife Town, Osun State in Nigeria, She will need to exchange EUR to our local currency (FOREX) and finalize her transactions.
You might have heard spreading gossip and misconception about Forex, and doubtful experiences of people who have never utilized any trading platforms before. Everyone wants to offer one or more false takes; everyone wants to share invalidated ideas and opinions about what is trending. In Nigeria, People even share other Nigerian’s trading experiences on their behalf. In this article, we will be flowing through different misconceptions and myths trader-or-not people spread and generalize about Forex Trading.
THE MYTHS OF FOREX TRADING
- FOREX TRADING IS EASY ONCE YOU START: installing and setting up your Forex account is easy. But making huge money with Forex is another course on its own. Some Nigerian failed Forex brokers could not hesitate to make money off desperate newbies trying to learn Forex. These brokers are a failure because they understand 75% of what Forex entails but not the strategies. They have not made any profit trading on the Forex Platform. The alternative available means to earn back their money is by organizing mediocre courses that are packed with theories and not action-based and facts for newbies who can’t wait to make $15,000 in Forex in one month as informed by their Forex masters. Making money in Forex warrants investing time in learning how Forex works and mastering your trading strategies to minimize the risk of losing as price volatility needs to be considered.
- ONLY AN ECONOMIC DEGREE HOLDER CAN BE SUCCESSFUL WITH TRADING ON FOREX: If you happen to be an economist who understands the required economics principle, You may likely trade like a pro. It does not entirely work this way. Do not panic if you aren’t an economic degree holder. It takes more than being an economist or understanding every advanced economics principle to make money on Forex. People with different academic background makes million from Forex monthly and most are not fans of economics. These are professional brokers who have mastered their secret strategies with steady application self-consciously. They move along with the market and now deal with means of making money with their buy/sell technique.
What about your instinctive ability to predict where the market is heading? Can you react quickly to market volatility and events? These are the necessary questions you should ask yourself.
- DO NOT MAKE CONSECUTIVE TRADING WHEN YOU MAKE PROFIT: Funny how some traders’ strategy is that the result of a certain trade will determine the next outcomes; which means if you make a profit from this trade, take a break for days or weeks before trading again. Traders that made a profit with their first trade informed other newbies about this false strategy, out of fear of losing their money the following time.
FOREX Market does not work that way. It does not recognize the myths and beliefs you build around your attendance. You will make a profit even when you do not expect it. People make and lose millions daily yet they are hunting for better strategies of trading.
- ONLY PREDICTION GUARANTEE MONEY MAKING: Well, people have made a substantial profit by analyzing charts, trends, indicators and recognizing patterns and occurrences. Many predictions are wrong especially when you are a novice trying hard to think and decide like professionals. A better way to counter this is developing the ability to react quickly to what is working and stay alert. Predicting is a good technique as well. If your prediction outcome is true, then profit is sure. What if it goes in the wrong direction? The best way is to act quickly on news and trends. Learn from what is ongoing.
- FOREX TRADES CAN NOT BE TIMED: If this is true, how are these brokers making predictions successfully and setting time to make some critical decisions in the market. It is confirmed that most advisors created this myth because they trade market-related products and they make their profits here only. A time-conscious trader with a solid trading plan and strategies can time the market and make decisions later. These advisors mostly have many positions under their management, hence the difficulty in timing their market.
- A LOT OF MONEY WARRANTS A RELIABLE TRADE: This misconception right here is why many Nigerians are running far away from Forex. People have managed to spread their unconfirmed judgment about Forex and others believed and decided upon it without adequate research. No motive drives them to find out more, besides, they were never really interested. They are scared of losing the little hard-earned they have. Forex today permits people to invest and exchange with a modest amount of money they can willingly risk. If you have the knowledge, strategy, and time; Keep improving. Retail traders were only able to access the interbank Forex market if they are rich enough to invest $100,000 and could extend their credit line by a financial institution.
- TRADING FOREX IS SIMILAR TO GAMBLING: Forex trading deals with strategic branches and market analysis that distinguishes it from gambling. Of course, you are risking your capital just like gambling but with the inclusion of critical market analysis and predicting tools, you are simply not practicing gambling. You are trading and will possibly make a profit.
If you will love to trade in Forex, forget the myths and learn, acquire enough knowledge about how it works and risk management. Be aware of the primary and secondary purposes of Forex.