5 Delusions about Forex Currency Trading

DELUSION 1: FOREX TRADING IS LIKE GAMBLING

REALITY: IT`S LIKE STOCK TRADING

According to the Bank for International Settlement (BIS) daily turnover of Forex market equals to $1,7 trillion! It is the international currency exchange market, a place where thousands of banks, investment funds and individuals gain. There is only one common feature with a casino – if you engage in this business relying only on luck, you may either extend your deposit or lose it completely. The difference is that in casino you cannot win constantly, but in Forex market it is quite possible. You will get no credit in gambling, however, in currency trading successful traders are given with million dollar credits. Treat Forex as business, work systematically and seriously – and the percentage of losses will be subdued.

DELUSION 2: MY PROFIT DEPENDS ON CHANCE

REALITY: YOU NEED TO LEARN HOW TO GAIN CONSTANTLY

Hundreds of analytic agencies and investment banks, including Merrill Lynch, Standard & Poor’s etc practice in market forecasting. Some traders treat Forex as just a hobby, however, it may become a hobby that will not take your money, but give you constant profit learning lots of interesting and useful things. Analysts currently indicate boom in hedge fund market as speculative transactions overwhelmed the trading floors.

Do not agree with those who think that only few may achieve success in trading. It used to be like that indeed, but not today. Modern trader, having learnt functioning principles of financial markets, economic basics, events, having practiced on free demo account influencing the market may gain a high stable income.

DELUSION 3: FOREX TRADING REQUIRES SPECIAL FINANCIAL EDUCATION

REALITY: EVERY PERSON, EVEN WITH NO HIGER EDUCATION MAY BECOME A SUCCESSFUL TRADER

Intellect and ability to hold emotions are what really matters in trading. When you open a Forex trading account, you get important priceless habits. The thing is to learn how to respond to swift data changing, compare massive flows of stock information. Many successful traders even had no higher education, but they had analytical abilities.

DELUSION 4: TO START FOREX TRADING I SHOULD PAY A BIG DEPOSIT

REALITY: YOU MAY OPEN AN ACCOUNT WITH ONLY $200

Principles of marginal trading enabled Forex brokers to introduce low deposits. This trading is called leveraged trading. Here you may buy a certain volume of assets paying only 1% of contract cost. The rest is credited (credit is free of charge) by the brokerage firm. Then the credit is given back and your profit remains at your deposit. Forex market enjoys no commission.

DELUSION 5: OK, IT IS POSSIBLE TO WIN, BUT IT IS NOT CLEAR HOW TO WITHDRAW FUNDS

REALITY: MONEY WITHDRAWAL TAKES ONE DAY

All the profit you`ve earned is fixed in the appropriate window of your trading terminal. In order to take your money back you send a funds withdrawal request to your broker. Your profit may be given to you in cash, via internet banking or Web-money transfer or by any method convenient for you.