Trading is an easy concept where traders are exchanging goods or services between parties. International markets allow a trade to emerge globally where those goods or services are insufficient or unknown.
But what's the truth?
The real truth about forex trading is we often trade without knowing the inside story. For that reason, we make mistakes that cost huge losses. Sometimes, we belong to some old myth that doesn't exist in the trading industry.
So, in this article, we will find out those myths and awareness of those insidious stories and expose the real truths about forex trading in 2021.
Now, we're going to highlight FOUR specific Myths that you must be avoided.
Truth About Forex Trading: Easy to Trade
The most real truth and usual myth about forex trading are easy to trade.
People from every online platform like forum community, signal-based community, broker-related community, social sites, software organization, and many more admit that myth.
But is it true?
Obviously not! Most people who are related to these communities are advertising their product or selling something that shows trading is easy.
But the real face is very scary. Trading is not so easy at all. You have to learn many things to sort out the trading effectively. Professionals suggest that a trader must learn forex trading and practice in a demo account for at least 6 months to 1 year, then you can trade in a real account. Also, there are some people who admit that you can earn a lot of money.
But it's not wrong at all. You can earn but you have to pay a lot to do that. If you find a professional trader's career, you will see most of them have experienced at least 7 to 10 years in the trading industry. So, we have to overcome this myth.
Trading Means Big and Fast Profit Method
Plenty of traders believe that trading brings a lot of money. But is the word worth it?
It depends, But not in the early case. You can earn big profits in trading. But without the proper experience, you can't get the profits.
In the case of gambling, you can make huge money in a short time. But you can't make it while trading. You need sweats, hard work, proper education, patience, and a perfect trading plan to do profitable trade.
Otherwise, you can try on luck which is totally unrealistic. In some cases, a few majorities of people believe that trading
needs luck. So, I want to ensure one thing that you do not have the right to trade with luck.
Professional and expert traders believe that luck is an unconventional truth that does not appear in trade. Trading
depends on your strategy and movement. When you are an expert in identifying the charts, you will know where the price moves.
So, here are some signs of a great trader--
- Having a trading plan
- Understand risk management
- Build a strong strategy
- Have a strong trading journal
- Must have patience
- Always set stop loss
- Always learn new things
Risk is Not Vital (Because I am going to win)
Novice traders are concentrating on money rather than risk. But the key is if you manage the risk, you can make profits.
Still, now there is some majority who believe that risk is not vital. And that's why trading is becoming gambling. Most people now believe that trading is another name of gambling. Because people do not have proper knowledge about trading. They think that you should invest your money, try on your luck and make a profit. But if you can't make the right risk management, you can't make consistent profits.
Also, the second reason behind that is making a trade without stop-loss. If you stop your unwanted losses, you must set a stop-loss.
Because whenever you make a trade, you are not 100% sure that you won the trade. Because every second is important in trading. That's why you set a stop loss. It will stop your losses at a certain point, where you wish to stop. Also, side by side you have to set take profit to claim your profits at a certain point.
With Low Capital, I Will Make a Lot of Money
I am not pointing out a joke to you! But this is the truth.
An average of 90% of novice traders thinks that they will become rich soon. In trading, every minimal detail is important. Those who think that they will make a lot of money with a short capital.
I want to say that it's not so easy at all. Experienced traders claim that risk management is required to identify the profits to your capital. The more you take a risk, the more you can get profit. But without having a proper education, I think risking more is a complete loss.
In day trading, traders are calculating their profits by how much they lose and how much they win. For example, If you win 60 trades into 100, then the win percentage is 60%. So, a trader must have his win percentage up to 50%. Then, it will be worth earning some bucks.
The Bottom Line
Trading belongs to a simple strategy. If you have money, knowledge, afford to lose, hard-working mentality, then trading is for you. Without taking a proper risk, consistent profits can be hard. Whatever, it's time to change the trend. We have to remove these myths from the industry Or the trading industry will end soon.