Note From Kalen: Forex is an interesting model of investing. I always want to provide you with different ideas and ways of investing, but never invest in anything without doing your own research first.
There is Forex advice coming from all over the web.
There are plenty of articles that try to peddle sheer misconceptions about Forex as facts.
Today, we’ll discuss a few myths about Forex trading that you should steer clear of.
Read on to unravel the 3 myths…
1. You Need an Economics Degree to Trade Forex
In 2013, Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity found that the market commands a turnover of more than $5.3 million per day.
In reality, everyone contributing to this market (or rather earning from it) doesn’t really hold a degree in economics.
It’s true that a general understanding of world economics is required; however, you don’t necessarily need an advanced degree in economics in order to understand each and every principle governing market trends.
The reality is Forex represents an amalgamation of traders, who have diverse academic backgrounds.
Accurate intuition, a knack for numbers and the ability to react sensibly to market conditions are just a few attributes that a trader should demonstrate in order to succeed.
2. You Need Millions of Dollars to Trade Forex
This one makes for a blatant misconception.
If you’re planning your entry here and looking for suggestions you will actually come across many people, without even the remotest connection with the world of investment, saying this!
This misconception has, however, a bit of history as well.
Before the rise of online retail forex trading, the forex market was particularly accessible to wealthy traders who were in a position to trade with amounts as large as $1 million.
Today, however, the market is more “accessible” than ever.
You can actually start trading with $1! So, before believing what you hear arbitrarily, make sure you’re educating yourself properly.
Don’t let these claims impede your entrance into this world.
3. Forex Trading is Easy
Forex trading doesn’t really require you to secure a degree in advanced economics.
That’s true. However, it doesn’t mean forex is easy.
You can’t expect success just after reading two or three books. Forex trading – ideally – is a lot more than reading books. We have already informed you about the different attributes that contribute to success here.
It’s also not solely about installing expert advisor software. Installing software is easy, but you need basic skills to use the program for maximum profits.
You need to have a basic understanding of the market and years of experience to be able to place winning trades. As harsh as it might sound, it’s a fact that Forex isn’t easy!
Forex may not be easy, but it’s doable. Don’t get discouraged, but don’t forget to do your research as well.
Your education about Forex and the way it works is about unlearning these myths and learning the fundamentals of this form of investment.
Hopefully this has been helpful. Good luck out there!