There are many Forex myths that should be left out and here we are going to tell you exactly what they are because in reality there are many more myths than truths. In this article, we tell you everything! So let's dive into the good, the bad and the ugly.
The Forex myths that circulate in the network do damage to this type of investment. Currency speculation has always been, especially in recent years, a victim of fake news and rumors. In order to successfully speculate or invest in the forex market, investors must leave behind these myths that affect the image of Forex and its expectations.
Forex gives monthly returns or interest
Another false myth. As in the stock market, the return generated by the person who invests in this product depends on the movements of the currencies that the investor buys. In other words, the profitability depends only on the fluctuation of prices, which also happens for other investments (commodities or stock markets, for example).
Forex is a pyramid
Forex is an electronically controlled market where all foreign exchange transactions are conducted worldwide. Its usefulness is incalculable for international trade since it is there that the currency necessary to pay or collect the money of the products of import or export is bought or sold.
Forex makes you rich in hours
Another falsehood. While it is true that anyone can enter this market and accumulate profits in a short time, to invest in Forex and accumulate profits, it is recommended to educate yourself in the markets. In other words, it is advisable to follow a course to invest in a stock. With this course we will be able to reinforce the knowledge we have and, on the other hand, learn more about Forex techniques.
Giving up our job to invest in Forex
Investing in Forex does not mean giving up our job. We can experience trading as a part-time job, at least on entry, but never quit other sources of income and always learn from investing or currency speculation and receive ongoing education.
Intermediaries want to scam you
According to some illegal experiences, many people think that the brokers who allow us to speculate on Forex are scammers. We must be clear that there are corrupt societies, but they are clearly in the minority. Forex is the largest market in the world, which has been around for many years.
There are two fundamental points that show why intermediaries do not want to scam you:
-Licensing and current regulations make it impossible for intermediaries to commit fraudulent activities. If you have opened an account with a licensed broker, current regulations will protect your capital .
-Brokers make money with the buy or sell spread. That is, they don't need to steal the investor's capital to make a profit.
In Forex, you bet
Forex trading is speculative, but to some extent: it's not a casino. The strategies and tools of this market are like those of the stock market. Forex traders have different types of trades, but they don't work randomly. If a transaction is carried out as in a casino, it is the sole responsibility of each investor.
I can make profit whenever I want if the forex market is open 24 hours a day
Again, you won't be sitting at your computer all day to be able to operate around the clock. You will need automated trading software to take advantage of the 24-hour trading market.
I need to accurately predict market outcome to be successful in Forex
Unfortunately, there is no scientific method that allows us to know in advance what will happen in the market with 100% certainty. There would be no foreign exchange market if exact exchange rates could be known in advance. Trading will never be an activity of certainties, but of probabilities. New traders tend to think in terms of probabilities, and this is one of the first things they learn about risk-reward relationships.
Often you tend to think that you have to use an extremely complex strategy to be successful in Forex trading. It's a popular myth that many online marketers want to create. The main condition for success in Forex is self-discipline and risk management. Many traders make profits consistently with simpler, older strategies.
A large amount of initial capital is needed to make Forex gains
A large capital investment will not help you with Forex. You don't need a lot of money to diversify into currencies and you can't vary exchange rates based on your orders (you would need billions of dol