Online trading can be quite profitable; but very often traders do not achieve the goal. Often they are misguided or harbour misconceptions about Forex trading. But you need to be alert and attentive; you cannot open an account and expect to have a boom in a few months. So, let’s de-myth some of the misconceptions in Forex trading and try to find out a pattern or method that might work.
There is no infallible system
If someone has told you that there is a system of Forex trading which will work every time; you should pause before implementing the method. There is no Holy Grail; neither is there any system which is absolutely 100% correct. It is better to accept that you will lose some, and there will be some that you will win some. But there are two things that you need to be aware of; risk reward ratio and accuracy. You do not have any control about the system accuracy. But you do have control about how much you are willing to risk, and how much you will make in each trade.
Accepting that the market is volatile
If you are one of those traders who believe that market will either go up or go down and think that the long-term goal did not work, but the short-term goal will; you must revisit your ideas. The market trades in very diverse ways, sometimes the market will go up, and at times it will go down. It can be pretty erratic. At times, it is best not to trade for a particular currency pair. Rather, it is best to look out for other pairs. You need not jump in the market to stay afloat. At times, you can just stand in the sidelines, stay low and do your bit of trading. Often it is best to trade in currency pairs which have clearest market conditions.
Do not blindly follow someone’s signals
Many beginners in Forex trading feel that it is safe to blindly follow someone else’s signals. It is just like putting away the responsibility of your actions one someone else. Always remember that when you do trading, you must have the acumen and the knowledge to go further. Often blindly following someone else’s signals may end incur huge losses. There are actually no great signal-blowers in the financial market; and you cannot strategize one someone else’s knowledge and skill sets.
Think about what you want when you indulge in Forex trading; it will help you to have a clear vision and the knowledge to do better!