People are drawn towards forex trading because of the idea of a promising career where you could acquire big amounts of money with minimal work involve.
When I say minimal work involve I am talking about staying at home and sitting in front of your computer watching charts.
I know we all dream that kind of job where in we feel free, not pressured, no boss to report to, can spend more time with family and best of all a job that makes us financially free in our entire lives.
Becoming a professional forex trader is one of the few career paths we could choose to achieve this goal in life. But I’m telling you now that it’s not gonna be an easy path as what you have heard and watched in YouTube.
Here are two misconceptions about trading the currency market which I think attracted people and made them willing to gamble money in the market.
1. The thought that forex trading is the answer to all financial problems we are facing.
If you search forex trading in YouTube you could see some traders posting big gains from trading forex instantly.
Gaining BIG MONEY ALMOST INSTANTLY sparks our interests about it and activates the optimistic side of our brain thinking if that guy could do it why can’t we?
But you know in forex trading you will need to have money to earn more money.
Trading the financial market is the biggest online casino in the world.
In short, trading is gambling. The thought that you have financial problems should be enough reason why you should not engage in trading. Because as what the famous saying says about gambling,
“The House Always Wins”.
If you are facing financial problems and barely just have enough money to live day by day then you should not engage in trading. Don’t think that this will be the solution to your problem, because it’s not gonna happen. Instead, it will just ruin you more and will lead you to a more depressing life.
Don’t use your life savings in trading the market because you will not be able to handle the stress and emotion that goes with it.
I’m not discouraging you to trade forex but it’s just really is the reality. If you really want to try trading, then you need to allocate a certain amount of money that you are comfortable losing.
That’s right, it’s not a quick rich scheme. If somebody is posting such big gains in just a matter of days in the internet that looks too good to be true then it may be not true.
Don’t be blinded by the potential gains you could earn, you have to think about the risk as well.
Success in forex trading takes time as well. It takes years to be profitable in this field.
Just like all the other careers in the world, it takes time to become a pro.
So don’t think that this career shift would suddenly end your financial problems.
2. The thought that its easy to become profitable in forex trading
Forex trading is simple, but it’s not easy.
It’s simple in a sense that all you have to do to earn money from it is to buy and sell the currency market.
It’s easy because everyone can trade without any educational background. It’s easy because it feels just like playing a regular pc game when you are looking at the charts.
And because of these reasons we tend to underestimate it which makes us vulnerable in the market.
Forex trading is a psychological game
When you already started trading the market you probably think that it’s the market that you need to beat.
But the truth is that it’s YOU, yourself that you need to conquer.
In this game you will need to handle your emotions well.
You will need to understand that this is a numbers game as well.
Every trade you take in the market has a random outcome. That means you will have a series of winning trades and losing trades.
When you are having a winning trade then that’s good, but when you are in the time of experiencing a series of losing trade then will you be able to handle the frustration and stress?
Would you still stick to your strategy? Would you still stick with your game plan?
It is reported that 90% to 95% of all traders in the entire world fails.
Only the remaining 5 % – 10% remaining are the ones who are profitable. Why is that?
Clearly it’s all because of the discipline factor of every trader. If only intelligence were the basis of trading then there would be plenty people making money from the market. But this is not the case.
Most failed because of greed and fear of the market. This then leads to anger and depression.
Taking a trade in these emotional states is very risky because most of the times we can’t think logically when we are more driven by these negative emotions.
These are the two thoughts that I think is the biggest misconceptions about the forex market.
I hope you learned something about this article and if you wish to learn about my profitable forex trading strategy in the 4 hour time frame you can just visit my YouTube Channel and watch my live trade videos.
YouTube Channel Link Here : https://www.youtube.com/channel/UCTUbwem072pzJ5V3ODAMPhg