There are a lot of contradictory misconceptions that many people have about forex. In this first post we will look at at wrong ideas people have regarding difficulty of trading successfully.
It’s so easy.
For those that jumped into forex without full training and maid money on their trades, it may all seem so easy to do. IN those trades, they may have made huge returns on their account, maybe a multiple of what they could earn in the bank for a whole year. And they may possibly not even know who the FED is and what it does, or what a Moving Average is and how to draw a trend line. For many of them, market seems to be made of “idiots”, and money is flowing in the streets ready to be picked up with the least of effort.
This misconception of easiness stems from very dangerous characteristic of the forex which is that you do not need to have any skill what so ever to have a winning trade, even a whole series of them. The markets can be very random and its results can mimic workings of gambling roulette. But unlike gambling where outcome are always random, markets – just like people that form them- have a lot of structure and patterns inside of them. So, for those that do not recognize these patterns and employ good strategy, they are forced learn really swiftly how difficult getting money out of forex can get.
It’s just too difficult and impossible to do.
This is exactly what people think if they experience heavy loses. Some people may shift from previous misconception to this one in a matter of days after they have suffered account equity wipe outs. For them, the easiest thing is not to learn why their losses have happened. That may bring pain in the way of having to look into their own mistakes and consider that they were wrong. The easiest thing to do is to say that their losses happened because markets are useless, and that nobody can make money in it. They also consider market participants as “idiots” because they just can not see how anyone can think they can make money in it when their own accounts were completely destroyed. They may consider forex as a gambling game – which in a lot of ways it can be, especially to many uneducated traders (see post).
Yet, if you spend any amount of time on this web site, you can get a feel that there are a lot of skills a person can and should acquire in order to put odds of success on his/her side. That way, it does not make trading any different than any other profession, and although difficult to master, it certainly can be profitable and rewarding in the long term.
You Might Want To Check These Out:
- Take Your Winnings Out
- Misconception about Forex Trading: Capital Requirement
- Gambling or Trading Forex, Is There a Difference?
- Character Trails of Winning Traders
- Big Market Moves
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