Forex trading has been getting more and more popular lately as people start to invest in it and trade for themselves. However, as with all things that are gaining popularity, the world of forex trading is also full of myths that are far from being true. These myths come from a lot of reasons, but one of the top reasons is ignorance of the system and how it all works.
Before you head on to Planet Forex and start your forex trading career, it is a good idea to get yourself educated on the top 4 forex trading myths that you should not believe–who knows, you might have one of these myths in your mind right now. It’s debunking time!
Forex is a “get-rich-quick” scheme
Probably one of the most common and the oldest myths about the forex trading industry is that it is a “get-rich-quick” scheme. Some people think that forex trading can make you millions with little to no investment at all.
Living poor now? No problem, go trade in forex, and, who knows, you might be driving your very own Bentley tomorrow or buying your own penthouse. It can make you an overnight millionaire as easy as 1-2-3. How convenient, isn’t it?
Not really. The forex does not work that way. Forex, like a conventional business, requires investment to succeed. And these investments do not only mean in terms of money–it also means investment in time, in learning, planning, and more.
While forex may make you rich, it definitely would not make you rich overnight.
You need a lot of money to get into forex
This particular myth comes from people who see an image of a forex trader as wealthy businessmen, lawyers, bankers, or anyone with a lot of money to burn just playing around with it.
While having more money to invest in forex is also a good thing, but anyone and everyone can start their trading career with whatever they have with them. In fact, those who are already experts in the industry are saying that you can start a stable flow of cash for trading for forex for as little as $200 or even lower.
Of course, from there, you will have to work your way up by working on getting good deals and trades and eventually making your initial investment grow.
Forex is a scam
You may have heard this from older people or those who are less technology savvy or those who have zero knowledge of technology and business at all–forex? I heard that’s a scam.
You get the idea. This misconception or myth simply stems from people not knowing the real deal about forex trading. And you know how it works–if they do not understand something, they make up stuff about it.
The truth is that forex is a legitimate form of trading, much like trading in the stock market. Also, forex trading is recognized by the law and is actually regulated by the government.
Trading is easy
If you think trading is as easy as picking a choice among available options and you then wait for the money to come in–then you can take a step back. Breathe, and reconsider theta you think you know about forex.
The truth is that forex trading involves a lot of studying, analysis, comparison, critical thinking, predictive thinking, and many more. To say that it is “easy” is a big understatement of the mental effort you have to put in in order to become successful.