Numerous misunderstandings relating to forex trading have been existing all the time. What's more frightening is that many people still regard them as guidelines. Several trading fallacies considered to be correct are disclosed herein in a bid to help you get away from mistakes.
1. Forex trading is a quick cash generator.
Being wealthy overnight is a myth widely spread in forex trading. This will trigger collapses without the support from trading techniques and related experiences. Only risk managers instead of dreamers can enjoy long-term profits.
2. Traders are geniuses.
Myriads of people believe that outstanding traders are equipped with flair, whereas reality tells a different story. Everyone can be a successful investor with the help of emotional control and behavior management even though he/she doesnt graduate from top universities.
3. Enormous capital is the precondition for being wealthy.
The view commonly shared by people is that lucrative transactions are based on trading accounts on a large scale. In fact, with the absence of clear trading logic, the more massive an account is, the easier it will see losses.
4. Fortunes can only be obtained when the market is accurately predicted.
Another widespread myth is that precise prediction of the future is necessary for making money. Actually, it is impossible. Knowing and understanding that there is a chance to triumph or fail is part of forex trading.
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