The 3 big lies which is part of Forex Trading

There are 3 popular misconceptions or wrong notions about Forex day trading, which are familiar to anyone who has spent some time in this business. Beginners however give a lot of credence to these ideas and this leads them to the path of assured failure.
So how do you bypass these common pitfalls in Forex trading? Let us first take a brief look at the 3 ‘avoidable’ areas in Forex trading.
Misconception number one is that this trade generates regular income and profits. Now use your common sense here. Can anything be able to generate regular income and also profits which is so unpredictable and alterable as the Forex market? The market is volatile and changing all the time. Even after using all your best Forex strategies it is very common to find that the assured profit, in a moment’s notice can turn into a blockbuster failure! So the next time some one tells you that he is making x% profits every month, look for the nearest exit in the room.
Ability for price prediction.This is misconception number two. Imagine this. Is it humanly possible to foresee future? You can come close to the results but this does not mean that you are 100% accurate all the time. If only there was a theory that was in place which predicted the future trend and prices accurately all the time, after taking in to account interest rates cuts, falls and rises, bank policies, change of authority diktat, and more. Impossible!
The third misconception is that this trade allows amassing huge profits with minimum exposure. There are some crazy advertisements of systems, which assure you 100% profits with only 1% drawdown. Check the profit and loss account of individuals who have used such systems and you know the truth.
The truth of the mater is that 95% of traders lose their money if they believed even one of the misconceptions cited above. There are three essential lessons to be drawn from the Forex market and they are (1) think of long term profits (2) risks are part of every day life in this trade (3) you have to play against odds with least amount of certainties. Trust the old saying: no risk, no gain.
Tags: Forex trading, lies
Forex demos are offered by companies that are selling forex trading softwaresMarch 19th, 2009 by Forex Admin 1 Comment Filed in Forex basics, Forex demos
Practice makes it perfect. Due to the numerous risks that you’re getting yourself into when you join the forex trader, practice became some sort of a pre-requisite for newbie forex traders. Before, a lot of people are really scared to try their luck in the forex market because of how intricate and complicated the market is. Now, due to the existence of forex demo, a lot of people are becoming more confident in trying out their luck in market trading.
A demo is a virtual forex account wherein you could put your theories and trading styles into practice. It’s a practice account where you use paper money instead of real money. In a forex demo, you get to be exposed to different investment concepts like charts, opinions, fundamental analysis, and technical analysis. You can visit online forums where you could read the opinions of other traders especially the experienced ones. You can also put your strategies into test by doing your trading activities and see their effects. In this way, you can see how effective your strategies and you can try new ideas. However, in a demo your trading transactions get recorded in a different realm; it doesn’t get recorded into the actual market since there’s no real money involved.
Normally, demos are offered by companies that are selling online forex trading softwares or platforms. They let you try the demo for 30-days for free. One of the reasons why companies offer forex demos is to encourage individuals to use their software when they start trading in the real live forex market. The main goal of fore-demos is to make an individual more confident not only with the forex market trading business but also with the trading platform that is being offered by the company so that he could eventually move up to trying the real live forex trading market using the same trading platform.