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3 Assumptions Most Traders Make About Forex Markets And Cause Losses

In this article you will find several assumptions that the majority of the Forex traders make about this financial market which sees them join the 95 per cent of losing traders. On fact, these assumptions are wrong even if a lot of people believe them and thus you have to make sure you avoid them, of course if you want to make money trading the Forex market, but not lose them.

The very first assumption is about people not understanding the significance of 95 per cent of traders losing. If these people thought about this fact, they would understand that the Forex trading just cannot be so easy. For sure, anyone can learn how to win the Forex market, but if you want to win, you have to learn skills and thus there is the first assumption that the majority of traders make which is certainly wrong:

– Cheap automated Forex software makes money

You have to understand that all these cheap automated Forex trading systems you see sold on the internet just lose money. You just cannot make a lifelong income for spending $100 and not making any efforts.

Unfortunately, a lot of people involved into the Forex market believe it and they all lose their money quite fast. In fact, these systems are so cheap since they do not work and the only one making income with them is the vendor, but not the trader.

– Forex trading requires a lot of study and is complex

You have to understand that the Forex market is simple and simple systems work the best and this is a reason why anyone can learn to be a Forex trader. But, if you use a complex system, it will have too many elements to break. In fact, the most successful Forex traders use the simplest trading systems. These traders do not work hard, they work smart.

– Trading the Forex market you can make money in a short period of time

The majority of new traders try to make money by day trading or scalping, but you have to know that they all lose. You have to know that the Forex market is an odds market and all short term volatility in a single day is random and thus you just cannot get the odds on your side and you cannot win.

Previously day traders on the floor have a time advantage in terms of getting price information before the main mass of traders. However with the development of the internet and instant price delivery, this benefit has disappeared.

If you want to be successful trading the Forex market, you have to make sure that you trade longer time frames and use long term trend or swing trading following to make money.

As in every other niche of our life Forex needs some knowledge.

Of course, one can start forex trading and be quite successful in it. However sooner or later the losses will come. It is precisely when one might think “Why didn’t I start with a good forex book?”

That does not mean that after reading even the top materials you will start making money, but this knowledge will save you from many traps. And even if you decide to get the help of a forex managed accounts service, still you will make a much wiser decision.

And a final piece of advice – today the web technologies give you a really unique chance to choose what you need for the best price on the market. Funny, but most of the people don’t use this chance. In real life it means that you must use all the tools of today to get the information that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the online discussion. All this will help you to build up a true vision of this market. Thus, giving you a real chance to make a wise and nicely balanced decision.

And also sign up to the RSS on this blog, because we will do the best to keep updating this blog with new publications about Forex market.

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