With a daily turnover of 5.5 trillion, the Foreign exchange market is undoubtedly the largest liquidity market when it's come to volume trading within the universe.
And there are serious proofs to back this one up!
- Preliminary Global Results
- Central Bank
- Survey of Global Foreign Exchange
- OTC Derivatives
All of these GIANT detectives have verified the numbers. Speaking of numbers, despite being the largest financial market, the foreign exchange isn't standing where it is today without its fair share of misconceptions.
Here are some of the myths that you should watch out while trading in the Foreign exchange market.
1. FX Trading is SUPER Easy
If it ever comes to myths and stuff then we all can expect someone to say, "Hey mate! Trading is easy." And, we mean, is it really that easy?
Regardless of what people say, don't pay heed to them. Besides, trading is easy if you make the proper calls at the exact time as well as gain a vast amount of knowledge regarding the trading indicators and other technical factors.
Otherwise, you'll see stars in the daylight!
2. An "Economics Degree" is Required to Trade Forex
First of all, have you ever crossed this awkward myth? Frustrating, right?
Anyways, Forex trading requires good knowledge regarding the economic market but that doesn't mean you can't be a trader if you don't have a degree in economics.
And... that's just totally unfair!
To be completely honest, numerous traders come from different backgrounds other than finance and economics.
As in trading, your educational background doesn't matter that much rather your actual understanding of the financial market does.
3. Forex Requires HUGE Money
Well, there was a time when the whole procedure was a bit expensive and only a hand full of organizations had the access to trade in the Foreign exchange market. And then, the technological evolution happened.
Thanks to the evolution now even common people can access the FX market from anywhere in the sphere with an interest connection and a smartphone or computer.
The BEST part?
The whole procedure doesn't require that much money too. You can open your trading account with a broker even with $25. Though the profit ratio will narrow down also as your initial investment is low. But it isn't costing you much money either.
4. 24 Hours of Market Watch is Required
The Forex market operates 24 hours seamlessly and also in order to become a successful trader it takes a lot of dedication and commitment.
But that doesn't mean you'll have to watch over the market 24 hours a day. Those people who still believe in this shit are pure nonsense.
Theoretically speaking, a lot of market traders are part-timers which means they are engaged in other jobs at the same time trading the FX market. Therefore, it's impossible for them to keep a 24 hours watch.
Will it imply they can't be rather successful traders?
Yes, they can!
In order to be profitable, you don't really need to sit right in front of your computer all day long instead of doing that, make the proper trading calls and the outcomes will surprise you.
5. Forex Trading Will Make you Rich "Overnight"
And this is something who shouldn't pay heed to as it makes totally no sense at all. For a fact, there may be a lot of scalpers who prefer short-term trades over day trading but becoming rich overnight is not logistically possible.
Besides, 2-3 years will usually go by while you still learn and implement the Forex fundamental factors. Online trading is rather a timely process that requires a fair share of time and dedication.
However, when trading the online market, you should always live by a particular term "consistency". It will help you IMMENSELY at the time of your most need.
So, there you have It!