We have already discussed some common myths regarding Forex trading like to be present in the forex market is mandatory, diversification of portfolio reduces risk, you can predict the market movement, etc. Some more that we plan to discuss today are
Forex markets are the same as they were years ago, which is not and can never be. The current trends are much more volatile than they used to be 10 years back.
In many cases traders, newcomers as well as veterans, end up losing huge amount in forex trading by believing in some facts, which are myths and at times misleading. Some of these myths are spread by brokers, vendors, or advertisers having vested interest.
One of the most common myth is you need to be present always in the market. This is practically impossible for any human trader to attend a market that runs throughout the day and night. Forex market is highly speculative. Big price movements are not usual and takes places only few times during a year. It is all about taking small profit relentlessly. The bottom line is your profit potential does not depend on how often you trade but how good you are in identifying trades. If you have developed the nose for identifying the right trade selectively, you will find your profits soar.