Due to the immense popularity of the Forex trading space, numerous misconceptions, myths, and distorted facts have been propagated about it. In this article, we’re going to be discussing some of the most common ones among these myths to determine whether or not they are to be trusted.
One should depend on analysts/experts
Depending on an analyst is the worst way to go about online trading. If you aim to find success in this space, you would need to install your own system and your own strategy. Those that make a living out of this are usually the ones that make the predictions and analyses using their own methods and have a minimal dependence on the so-called ‘experts’.
If you stop trading, you might miss an opening
Professionals do not build their careers by attempting to exploit every opportunity ever presented to them. In fact, most of them hardly trade every day. Online trading in Indonesia is less about opportunities and more about the right management techniques and investment methods. Staying in the market all day long would be futile if one does not have these skills.
Making money is easier through day trading
Considering that the currency markets would include long-term directions and trends, movements within a shorter span of time would be random. As a result, someone involved in day trading would have to make his living through guess-work. Another thing to consider with this technique is the commissions one needs to pay his broker for every trade. As a result, one is more likely to shell out more money with this technique, and work on a shifty ground.
The live environment is exactly the same as the demo environment
Although in theory, this is true; one has to take into account the emotional and psychological parameters that play a huge role in shaping the outcome of a trade. The demo scene strips one of the risk involved in real trading and, with it, the emotional attachment to it. As a result, when moving to the live scene, beginners are sure to taste a different experience.
Only amateurs need to use stop-losses
Stop losses are the only mode of constraint that one can place on the risk involved with his transactions. Not using them would be wastage of this potential, and as a result, everyone from a beginner to an expert, uses stop losses in Forex trading.
Having more currencies is better
Contrary to this myth, using more instruments and assets would only lead to a trader overwhelming himself with information and data. Having a more focused approach that involves a single pair is more likely to render positive results.
If you need more assistance with this area of business, then it always helps to engage with a leading broker. WesternFX offers online trading services to clients in Indonesia, Singapore, and many Asian countries. Get in touch with us to unlock your true potential in this realm!
