Forex trading is very popular and a lot of people make money everyday through it. However, you ought to understand that the road to success is not easy. Also, there’s a lot of myths about trading that are holding potential investors from achieving their goals. With ETX review here, you can learn further about trading forex through a reputable broker.
However, when comes to the 5 myths that are currently holding you back from achieving your trading goals, they are as follows:
You can make a huge amount of money with only a few bucks
It’s true that you might be lucky enough to make a good return. But truly, having less than $1,000 in your account will get you to fail before you can even make a return. Using an amount lower than $1,000 will lead to you, let’s face the fact, you opened up to 5 trades based on the little amount you have. There’s a high probability that you will lose all of your trades. And you have to keep in mind that the trending limit per trade is often 5%.
You can change the Forex trading system
When trading forex, you can’t change the system because it’s only the system that can change you. Let’s take a look at this, you deposit a couple amounts of money and place a couple of orders. But in a few hours the price started to increase. And you wait a couple of hours and close your trade. So, thinking about this, you didn’t change the forex system because it’s the forex system that changed you.
Technical Analysis is better than fundamental analysis
Technical analysis involves you studying charts with your eyes while taking notes. This may involve calculations to determine better trade results. A lot of traders believe that this method is better than fundamental analysis, but the truth is that it’s not. Technical analysis allows you to make use of price action based on the active chart. With technical analysis, you can easily predict the outcome of a price in the future.
However, when it comes to fundamental analysis, it’s easier than technical analysis. Fundamental analysis is for everyone including beginners independent of their trading knowledge. With fundamental analysis, you only need to learn about it and apply your trading knowledge for an accurate result. FPmarkets here offer a similar trading opportunity on their platform, which is also lucrative to beginners.
You can make money trading only indicators
A lot of people have been caught close with the myth that indicator simplifies your trading to generate a huge amount of money. There’s no doubt that traders can make a lot of money from indicator analysis. But that doesn’t mean you will be able to $100 to $10,000 in a twinkle of an eye.
And most importantly, without enough experience you won’t be able to use indicator analysis. The indicator analysis is similar to technical analysis. However, they are slightly different but perform the same purpose in helping traders predict price results.
Forex trading is reliable income source
Trading forex is very lucrative and can be considered an investment option. However, that doesn’t mean it can be considered a reliable income source. You can read the finpari review to get a better idea about the trading of forex on brokers. The trading of forex involves a huge amount of risks that can lead to a trader losing their capital at any time.
Forex trading is very popular and a lot of people make money everyday through it. However, you ought to understand that the road to success is not easy.