The influence of mainstream media on our society and its understanding of the industry can never be understated. By perpetrating stereotypes and spreading unverified information, mainstream seldom covers the entire forex industry and has glorified online trading in Philippines as a money-spinning industry. While the forex exchange is highly lucrative, several misrepresented facts have led to myths about the industry that have been highly circulated and advertised. Contrary to what gets wrongly advertised on the walls of social media, trading has a few myths that should be debunked in order to ensure that hundreds of novice traders do not enter the industry and make losses due to inexperience.
7 Common Misconceptions about the currencies market
1. Becoming rich is easy. On the contrary, 90% traders tend to lose their initial investment.
2. Forex trading means Day trading. Long trades are allowed as well and making money from them requires less effort and more planning.
3. Market may be rigged. The currencies market is too huge for any single player to manipulate it.
4. 100% success rate is possible. 100% success rate is impossible. Even the best traders can’t post such high rates of success.
5. Trading using news is sufficient for profits. News reports are just one part of fundamental trading. To discern the right pattern, traders need to track other important factors as well.
6. Using more pairs assures better returns. Online trading with a single pair or two is the best way to focus on the financial instrument and predict its movement accurately.
7. If you can predict the market, you can get rich. Predicting the market is impressive. However, to register profits, traders must execute the trades perfectly.
Traders need to ensure that they get their understanding of the FX trading platform right before they venture into the market. This can help them ensure that they do not fall prey to falsely advertised myths and pay a heavy price. It is always advisable for novice traders to request the guidance of experts before they take up Forex trading. For traders who are looking to take up online trading in Philippines, partnering with reputed Forex brokers like WesternFX can help them know about the workings of the industry in detail and make an informed choice when they take up trading.
