Wednesday, October 3, 2007

Forex Trading - The 4 Biggest Myths that Cause Traders to Lose

If you believe the four forex trading myths below you will lose. There all commonly accepted by the vast majority of traders but dont let that worry you, the vast majority of traders dont win!

So here are the top 4 myths of forex trading.

1. Someone else can give you success

It amuses me the amount of information I get from forex vendors that promise me huge riches and a regular income, for spending a few hundred dollars with them.

My own view is if their profits are so good why are they hassling me?

The answer of course is, that their courses and e-books are junk and they are hoping to dupe me with tempting advertising copy.

Dont fall for their copy be realistic, the only person who will make you money is yourself, so learn forex trading yourself.

If you dont learn the basics yourself and know how and why your forex trading system works, you will never be able to follow it with confidence and discipline and these are vital in achieving currency trading success.

2. Day trading makes money

The biggest myth of all is perhaps that you can make money with a day trading system you cant.

All daily volatility is random and you stand no chance of winning, as you can never calculate the odds and forex trading is an odds game.

3. You need to work hard

No you dont!

You have to ensure that you get the right forex education and learn the right knowledge to succeed.

You can learn all you need to know in about 14 days and you should be able to trade in less than an hour a day.

People often think the more effort they put into trading currencies, the more they will get out in terms of profit, but this is totally wrong you get your reward for being right and thats it, the market rewards you for results not effort.

4. You need a complicated forex trading system

No you dont.

This leads on from the above point in many respects, as many traders simply assume that more indicators the better the system will perform.

This is incorrect, in fact the complete opposite is true simple systems work best as they have fewer elements to break and are more robust in the brutal ever changing conditions of real trading.

Remember to keep it simple, this will increase your odds of forex trading success.

Dont believe any of the above

So there you have the top 4 currency trading myths, believe any of them and the market will take your money and you will end up in the losing majority.

Avoid them and you can set yourself up for currency trading success, in the worlds most exciting and lucrative investment medium.


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