Forex Trading Beliefs

by : Monica Hendrix

There are 3 critical idea's about how to he successful at currency trading that are perpetrated online and most new forex traders fall for them. If you accept them then you are destined to wipe out your equity so here they are, avoid them at all costs...

Here are 3 common beliefs, which are promoted heavily online and all will see you lose.

1. Simulated Track Records Indicate What You Can Expect In Real Time

First lets look at one of the biggest problems traders fall for and it's the myth of the paper track record designed on past data will make you money in real time. This is a warning you will see on the majority of course, forex robots, trading signal services and other services sold and you would be wise to read it carefully as the odds of you winning are dramatically reduced if you see it:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading.

And the obvious statement which is the warning which discounts the track record altogether and is a sobering thought:

Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

The above blows any track record presented with one of these back tested track records out the water, because it's been done knowing all the price history and data, which is not real life! We don't know what will happen tomorrow today in life or in forex trading, so it proves nothing.

Its normally tucked away in the small print anyway and you have to think - if it really is that good as forex advice why is there no real time track record of profits? Some of the track records are so good you wonder why the vendor isn't trading it; the whole population and banks still bother with dealing teams when they can replace guys on 7 figure salaries with a robot costing just a few hundred bucks.

Never believe what you see simulated will necessarily happen in real life. If you do you will disappointed.

2. You can Predict Forex Price Movement

Prediction is another word for hoping or guessing and no one knows the future so don't guess!

Forget about the idea that markets move to scientific theory - they don't. If they did, we would all know the price in advance and there would be no market. Trade the reality on your forex charts and forget predictions forex trading is a game of odds not a game of certainties. This doesn't mean you can't win, you can but you need to accept that perfection is not possible.

By its very nature a scientific theory should work all the time but the major scientific theories of Gann, Elliot and Fibonacci don't and these guys made no real money with them so what chance have you got?

Myth 3 Forex Trading Is Easy!

If it was then 95% of traders wouldn't burn their accounts!

Its hard and you would expect that as the profits can generate a great second income or even, a changing one. This myth is normally perpetrated by people selling simulated track records with systems and we already know ho much use they are. Fact is, they don't trade and make money from sales of their merchandise. If trading were as easy as they make out they would trade!

Forex trading looks easy and learning how to trade is (if you avoid these myths and the countless others) but making money is harder.

Winning at Forex

If you want to win forget all the get rich quick and people telling you they will lead you to success and instead, get the right forex trading education, learn it, get confidence in it and then execute your trading plan with discipline and courage - now that's the way to win and you probably knew that already!

So avoid the myths, learn currency trading the right way and you can enjoy currency trading success and be on the road to financial freedom.