Myths about Forex Trading

1- How to earn in Forex: 

Forex, where the commodity that is traded is the currency, not stocks and a share, trading is a market that gives its investors, the performance in the forms of the relative value of a currency changes by one. Forex is therefore always traded in currency pairs with the major currency pairs are Euro/dollar (EUR/USD) and the U.S. Dollar/Japanese Yen (USD/JPY), TO NAME A FEW. And it is concurrent with the purchase and sales of currencies which the operator expects a profit in the fluctuations of the favorable predict the trend of variation between the two currencies. But how to make money in such a competitive market and constant trade?

Well, here's an example to illustrate how…assuming that the current supply/ sale price for EUR/USD is going by the rate of 1,627/31.giving you the option to buy 1 euro of 1630UsD or sell 1 euro for 1627 USD. Now, if you feel that the euro is undervalued against the US dollar, would choose to buy Euros, the sale of their dollars at once. So, buy 100,000 Euros by paying 150, 300 US dollars. You can then start analyzing the market, pending the exchange rates goes up. You can also opt for Spot Forex Trading.

Many stock tradrs think the Forex market is easy because it is open 24 hours a day. They think they can trade whenever they want and make their quick bucks. Truth is you can make money in Forex. But for that, you need to have a deep knowledge about this market.

The indicators that work in stock don't always work in Forex. The Forex market is more complex and, this way the indicators that you use on stocks don't work so well here.]

Brokers are another huge difference between stocks and Forex. In the Forex market, due to the lack of regulations, a lot of Forex brokers don't act in their client's best interest. It's a lot of more difficult to find a good Forex broker than a stock broker.

2-  You can make money anytime you want:

This market is open 24 hours a day, in the majority of the time there isn't enough volatility to make good traders. This is a big challenge because volatility can appear at any time of the day and the trader can't be watching the market all the time. He has to adjust his strategy in order to trade only in high volatility periods.

3-  You need to predict what will happen in order to make money in Forex:

In order to make money in Foex, you need to react to what is happening. This is not the same thing as predict. A good trader simply reacts to whatever the market is telling him. He analyses charts, reads the news and all information he has at his disposal in order to react as fast as possible to make movements. A good trader is always looking to evolove and learns.

4- Commission trades are free on Forex market:

You don't pay a commission fee when you place an order. Although, you pay the spread, which is the difference between the bid and the ask. This way, the more you trade, the harder it will be to make money in Forex because you'll have higher fees. In the Forex market, as in any other market, a trader must avoid the overtrading at all costs.

5- The more complicated my strategy, the best:

This is another myth that has nothing to do with reality on Forex trading. The truth is that usually the simple strategies or systems outperform the complicated ones. So, there's no need to use plenty of different indicators at the same time. Study the market, find your favorite system or strategy, and stick with it. 

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