Biggest Myths About Making Money Trading Forex

 

It seems like when most people hear about success stories from traders making money from forex, people instantly think why not me?   Then they think what are they doing that I'm not doing?

That's when their imagination takes over and they think that there is some kind of "catch" to succeeding in forex.

Here are just some of the myths they come up with:

They must have found the holy grail.  This is a really popular one with the trading community.  This is like the trader's bigfoot, UFO, Fountain of Youth, all rolled up into one. There has been so much talk about this, that people start to think it's real. Newsflash!! There is no such thing as something that will make you pips 100% of the time.  It doesn't exist. The only way you could never have a losing trade is if you never close your position and live with the drawdown for the rest of your life.

They were rich to begin with so they have access to the "best stuff". While yes, its true that rich people may have more powerful connections, I really don't think that leads to having success.  Yes, they can probably afford those $10,000 lectures that these "gurus" have, but for many of them, it never amounts to anything.  The truth is the majority of the people that end up having success trading forex are usually in the poor or middle class demographic, just simply because they want it more.  Rich people can always fall back on their money if they don't succeed, so they have less invested in it. (emotionally speaking)

They use the best "state of the art" software. When it comes to companies like E-Signal or TradeStation, there are certain bragging rights that go along with using their forex trading bots.  People brag about them, in the same manner that people would brag about driving a Mercedes. Yeah, but doesn't that Volkswagon take you to the same places?  There is a common misconception that people have about these services.  They feel that the people who use them really know what they are doing.  Not necessarily. Some people are just wasting hundreds of dollars a month on it, and on top of that, not making any pips. If I say it once, I'll say it a million times. It's not the equipment that makes money, it's the trader!!!! 

They found a "magical" indicator.  This is becoming a fairly common myth nowadays, especially when you see sales page after sales page of progammers selling these indicators that are putting buy and sell arrows on a chart, and all you have to do is follow them.  People love this idea, because its completely mechanical and simple.  But does it work?  Ehh....not so much.  There is no such thing as magic when it comes to trading forex. There is no formula that will "beat" the system.

They must be REALLY smart.   Folks, this isn't brain surgery. If you ever met some of the people making money trading forex, that will become very evident to you.  A lot of them barely even finished high school.  They don't have diplomas from Harvard in their offices.

It's really all about understanding the markets. For a technical trader, that begins with understanding forex price action.


 

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