There are many ways the currency trading market is branded to the outside world. To those who have not heard of the Forex industry, it is surprising to them how people can get a chance to change the luck. Sadly, only the potentials are advertised by the brokers. The perils are often hidden as it would drive people away from investing capital.
When novice investors come, they have many misconceptions in their minds. Most of the ideas they have are vague, the brokers have brainwashed them and these wrong ideas lead to failures. If you are thinking of investing money in Forex, you are in the right place. We will share some of the misconceptions that every novice have in mind. Do not worry because once the truth has been revealed, these people will come out of the sugar coated false hopes.
Every investment is profitable
This is the first and the biggest misconception of all time in the trading industry. The professionals know how hard it is to make a trade successful there are plenty of things that can turn against the investor. A wise trader knows it also takes a bit of good luck to hit the jackpot in currency trading. As these beginners have not many clear ideas, their minds are filled with false expectations by the scammers. The doubt does not arise because of the high volume of capital being traded every day.
Billions of dollars are being exchanged by brokers and traders. As there is no office where people can go to collect information, rumors also spread fast to mislead the community. If you are here for this automated profit to get with every deposit, walk away with the capital and never look back. For a few months, a person needs to go through loses in Forex that not many can survive. Even in demo accounts, there will be unexpected results which are very frustrating. The chance of losing money is more assured than making, keep the expectation low and invest wisely.
Trading is getting rich quick scheme
Majority of the new Singaporean traders thinks trading is the easiest way to become a rich person. But if do the math, you will understand this is one of the most sophisticated business in the word. You have to use the Saxo demo trading account to learn the different prospects of trading. Without educating yourself properly you can shine in the trading business.
If the patterns are going upward, I am sure to make money
We deeply mourn to disagree with this concept. The price movement on the chart is also known as volatility that represents the whereabouts of the money. If the trend is going upward, investing without knowing what is affecting the trend is going to be a big gamble. Based on the different patterns, plan the strategy to invest the capital. Not only are the upward patterns profitable but so are the downward movements. Making profit is not related to the direction of the pattern but finding the right volatility at the right time.
If I simply follow the groups, I have less chance to fail
The contrasting result often happens when this idea is blooming in mind. There is no way to discover the success of these communities. Most of these communities are formed by novices, who have no knowledge about trading. They want to get the prediction and strategy right at free of cost and without practicing, this is why the community never succeeds but the solo performer does. It is better to open a managed account than having online groups to show the direction of profit.
I will trade for a few days before going live
Months of practice is not enough to prepare a person for unexpected volatilities and outcomes. It is advised to demo trade until expectations can be met. Do not mind the timeframe as it is not related to achieving the goal. With the right mindset and focused practice, a novice can also become a great currency trader.