Common People’s Thoughts About Forex Business – There are some common misconceptions of lay people who are wrong about forex trading. This article will discuss this erroneous assumption as well as correct it. What traders need to understand is that forex is the largest market in the world. There are many advantages to be gained by trading.
The forex market requires an “office”
The turnover of transacted capital flows reaches $1.5 trillion every day. Many assume that all types of transactions must be carried out face-to-face and physically. Perhaps the opinion of most lay people, the forex market is like a bank teller or conventional purchases of goods. In fact, the true forex market is an online and not centralized market. You will not get physical exchange on the exchange. All kinds of foreign exchange transactions are carried out online.
No need to learn, just have experience
The next wrong assumption is that ordinary people think that some traders can make profits because they have been practicing with the system for a long time. However, after a more in-depth study, novice traders just try to guess or follow from other traders’ systems without sufficient knowledge of the essence of the system. So losses are often encountered by novice traders because they do not know the trading system that he uses for sure. So, it is best knowledge backed by experience.
The important thing is get rich quick
When you are trading, do not forget to apply discipline. You should always make logical and researched decisions when trading. This is not a “get rich quick” system. But a financial rule that must be done. Don’t think too high of a profit. Use planning logically and realistically, so that what you get later can be the basis for future plans. A system that only cares about profit but does not take into account risk is not a powerful way to protect profits. So, be aware of this problem. Realistic thinking can really help you get more success than over-the-top but unworkable fantasies.
Capital must be large
One thing to keep in mind is that just because you are trading with a minimal deposit doesn’t mean your chances of success are low. The myth that has been circulating so far is that to be able to escape losses every time a floating minus occurs, you must have a large capital. In fact, with even smaller capital you can seek success by limiting risk by reducing trading lots and implementing risk management.
Scalping is good for beginners
Unlike in other trading, forex sometimes gives a strange feeling and does not fit the situation. What you think is right may not be so with the market. Don’t think that you can get rich quick using the Forex market. The truth is that short term trading or scalping, which is known to turn profits quickly is not really great for beginners. To become a reliable scalper, you are required to be a trader who has a fast and precise response, and can face psychological pressure to be able to open and close many positions in a relatively short time. This ability certainly will not be owned by novice traders.
The bigger the leverage, the better
If you want to try it, it might be very risky. You should think about leverage which can help to provide the necessary capital, but not put too much pressure on the risk. It can be terrible if you use very large leverage, but can’t be careful in using it. It is certain that there will be big losses.
In conclusion, practicing, carrying out trades, and preparing carefully are the keys to success in the forex market.