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Trade
Myths about Forex
In a huge amount of information on currency market You can find lots of tips and recommendations that often contradict each other, making it difficult to understand what is really real and what is myth. Both beginners and experienced traders becoming victims of myths, following advice like this, and as a result bore and moral costs and financial losses. That is why for any forex trader's especially important to "know in person" the most common myths to be able to protect yourself from them.
Here are some of them:
The first is that forex trading is a way to get rich quick. This is not so. Many new traders come to the foreign exchange market, guided by this false idea. Some of the unscrupulous players in the market encourage them, trying to force traders to risk all, like a few dice rolls when playing in a casino. However, successful traders are patient, they are slowly trying to identify good trading opportunities.They also focus on risk management, usually limiting the possible losses from any single agreement of not less than three percent of the total size of its capital.
Second, many people think that forex is only a short-term trading. Of course, successful short-term traders, the high leverage has made short-term trading even more popular. However, in the long term currency shifts due to fundamental factors, even if in the short term "lead" technical factors. It is possible to trade using these long-term trends and to make good money while holding positions open for longer periods of time and avoiding the need to repeatedly pay for the spreads.
Thirdly, many people believe that success in trading they must learn to predict price movements in the market. Inexperienced traders pore over charts for hours and even days trying to find such the "Holy Grail". Unfortunately, the human mind copes with the detection of patterns that do not exist in reality, and this often leads to unconscious bias affects behavior when trading.Traders in the trading process should always look at real movement in the market - and if they do try to "predict" the market, they must wait for the movements, is able to confirm that their prediction was correct.
Finally, a complex strategy is not the best, no matter what people say about them. Traders often start using a simple strategy, but at the same time they have dissatisfaction from the fact that their earnings seem to them irrelevant. They think that if you can add to your shopping additional "bells and whistles" that increase revenues. In most cases, all this makes the trade a more complicated and time consuming, resulting in an increase in the number of errors and losses.On the other hand, using a simple approach, such as, for example, following the market trend or trade in the channels of the trader easier to trade, and he still can squeeze a good profit. Remember that success in forex trading is not to win in every transaction. The secret of success to the number and size of profitable trades exceeded those figures for losing. Discipline and the use of simple strategies, would probably lead You to this result.
And don't forget the warning: "Forex Trading characterized by a high degree of risk and Your losses may negate Your initial investment".
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| Category: Forex | Added by: (30.10.2017)
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| Views: 303
| Rating: 0.0/0 |
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