Credit: Allan Ajifo
As with almost anything, the Forex market means lots of mythology floating around the potential, both for success and failure. For novice traders, this can be a serious problem, as those myths can lead to great issues as they try to find the right strategy. Here are a few you have to dispel before you ever hit the world of trading.
1. The Forex Market is Simple: There is nothing simple about the Forex market. Even traders who have a serious understanding of the market get caught by surprise sometimes when something unexpected happens. Getting past the novice trader stage takes real time, money, and practice, and there’s nothing simple about it, so a “For Dummies” style reference book isn’t going to teach you everything you need to know.
2. Staying with a Very Simple Strategy Is Best: There are many Forex trading strategies floating around that may or may not work for you. Simple strategies aren’t always the best way to go. Likewise, the more complex a strategy is doesn’t mean it’s better. The biggest requirement for a good Forex strategy is that it works for you. Traders make consistent profits with both types, but the reality is that if it doesn’t spell success for you, you’re not going to be happy with it.
3. Forex is Random: Forex isn’t like gambling. It is true that there is no real certainty in the market, but you won’t find that guarantee with any market. The reality is that there is a level of predictability in market patterns, and the ability to spot them only comes with extensive trading experience. As your skills build, you’ll find a method that helps you spot what might work and what might not work, and that’s the only way to succeed. The idea that success is just based on luck thanks to a random market is just another myth propagated throughout the market.
The more you begin to learn about Forex, the more you’ll realize how much of what you’ve heard is fact and how much of it is fiction. Distinguishing between the two as you build your strategy is a must.
About Carson Derrow
