5 interest facts about Forex! Maybe you don’t know your Forex market yet…
For novice traders, there must be many mysteries and questions that have been unanswered for a long time.
Here are the 5 myths about Forex Trading!
1. Trading requires advanced math skills
Most successful traders note that personal qualities such as patience, attentiveness and diligence are statistically much more important than advanced math skills.
In the long term, the ability to patiently follow your strategy plays the main role.
2. Your Forex Trading Platform will always look like this
Sometimes you see charts such as the one below on traders’ forums or advertising.
However, in real life, most traders do not need too many indicators and oscillators to analyze the market while they don’t forget to take into account the various impacts of fundamental analysis.
3. The More Instruments You Trade The Better
While brokers offer hundreds of instruments and a variety of trading asset classes including currency pairs, CFDs for stocks, indices, commodities and cryptocurrencies, most successful traders tend to choose one or just a few assets and trade them on a regular basis.
It is undoubtedly easier to focus on one rather than multiple assets in order to trade with maximum efficiency and potentially achieve a better outcome.
4. Forex Brokers mislead their clients
If we think back to the beginning of 2000s, there were several cases when some dishonest companies were found to be manipulating quotes and trying to mislead their clients.
Fortunately, nowadays Forex brokers are subject to stricter regulation and even one client complaint could have a significant impact on a company’s reputation forever.
When choosing a broker, make sure that it is regulated. If broker is regulated by FCA or CySEC, you can check it for fines or disciplinary actions online.
If the company’s record is clean, it is reliable enough to trade with.
5. Forex Trading Is Gambling
The truth is that Forex is based on macroeconomic principles as it focuses on economies as a whole and their relationships with each other.
For example, long term movements of currency pairs are not random but are controlled and influenced by global and national economics.
This completely negates the myth that Forex trading is gambling.
Now you know the facts and wish to become a serious trader, make sure you choose a trustworthy and reliable company.
FBS is a leading global multi-regulated broker with over 10 million investors.
Register today and get bonuses!