Capital turnover at forex market reaching billions of u.s. dollars per day is the largest in the world. The amount of capital and actors involved in this market increased from time to time, ranging from retail traders, brokers, banks, institutions to other bigplayers. Trading in the forex market are categorized as high risk with a large earnings (high risk high return), and that makes the forex market is attracting an unlimited trading time from Sunday night to Saturday morning as well as can be done throughout the world with the support of on-line technology that continues to evolve.
Forex Trading Myths
Logically, trading in the forex market can yield a profit of tens to hundreds of percent per day, but can also lead to loss of funds in the same amount. According to this fact, there are a number of myths circulating and more a mistake in understanding the concept of trading in the forex market. Some of the common myths are:
1. you must be the economic experts to be trading in the forex market.
This assumption is not true. If the experts in economics will certainly be proficient ifthe plunge in the forex market, why not many economists who became professional trader?, in fact most of them tend to become observers or analysts. Professionals who work in banks and major financial institutions come from different backgroundssometimes not related to economics. Professional forex trader also not everything behind the economic education.
The main factors that support the success of a forex trader is the speed of the reaction to changes in the market, the application of adequate risk management and its perception is strong against the direction of movement of the market price. The interesting thing is usually obtained someone in self-taught and experimental, and is not taught formally in economic institutions.
2. you need big capital to plunge in the forex market.
The current large capital to forex trading is already not his anymore. As You may have already know, many brokers that offer mini and micro accounts even nano whichwith just US $1.00 you can already trading in the forex market, there is even a broker who gives away free capital to use trading.
Maybe 20 years ago, only the banks and major financial institutions or fund manager with considerable funds to plunge in the forex market, but with the development of online technologies and the competition very tight lead brokers regulatory changes that allow everyone to participate in trading on the forex market. So the myth canbe considered ancient or no longer valid today.
3. Trading in the forex market is actually easy.
Yes, download and install the trading platform is indeed easy, even done a setup program for trading robot is also not difficult. However, trading in the forex market with real funds and generate a consistent profit isn't easy to do.
Professional traders fall up before the familiar with the trading systems that have been developed over the years. Not just trading system, the factors controlling emotion is the hardest to do when trading, it took long enough to train it. This myth is true for those who have never jumped significantly in the forex market.
4. you have to monitor the market a full 24 hours.
This assumption may be true 30 years ago where the traders have to do transactions through brokers through his dealing section either to open or close a position.-->