There is a long-standing rule in Forex trading – the 90/90/90 rule. According to this rule, 90% of traders will lose 90% of their funds in a matter of 90 days.
But for those well-educated traders, there is nothing much to worry about. You can keep yourself from joining the 90% of the losing end by knowing the myths in trade forex that have been recognized as real all these years.
Myth No. 1: Trading is a Piece of Cake
We tend to see those adverts claiming that trading is easy and you can become a millionaire after investing some money. There are also videos, posts, and even seminars made by people who claim that they are the living-proof that trading is easy.
Unfortunately, these things are only made up of people who want to sell something. These are their dirty tactics to encourage you to invest as soon as possible, even without proper education and knowledge. They might offer you something, such as software or a training course then they claim that this will make you successful instantly. Then you know what happens when you become successful in trading. You will make lots of money.
So, without a doubt, many people get to jump straight to success, avoiding the regular learning process of trading. But then, after giving them the payment, you realize that you have fallen into a huge scam.
Trading Forex Lets You Make A Lot of Money
It is true that you can make a lot of money in trading but all that stuff claiming that there is an easy way is a complete myth. In fact, it is very hard to attain success in trading. First of all, you need to do a lot of things such as learning the basics of trading, the right behavior that you need while trading, and the trading psychology that goes with it. All these things cannot be achieved overnight.
Myth No. 2: Trading is a Get-Rich-Quick Scheme
Without a doubt, trading can bring forth large profits. But this advantage is only applicable to those traders who have the right set of knowledge and skills.
- You must learn and know-how trading actually works
- You must learn about probabilities in your trading
- You need to have a concrete trading plan that defines your trade setup, your stop-loss order, your exit trade as well as your entry trade.
After that, you need to;
- Start trading your system using a small capital
- Have a concrete plan on how and when you should increase your trading size
- Have a plan on how and when you should decrease your trading size
- Expect when you should take the time to achieve bigger profits
So, basically, the path to success in trade forex is learning the things that you need to know and doing the things that you need to do so you can trade correctly. To say it short, you need to know what to expect in trading. Also, you need to know in advance the things that you should do when adverse scenarios come in.