Myths about Forex

To make money on Forex, you need to monitor the market 24 hours a day, without wasting time for food and sleep?

Nobody monitors the market all the time. Each trader chooses the most convenient working hours for him. And he trades when he sees an opportunity. Of course, while a trader is resting or busy with other business, he misses a lot of profitable opportunities. But you can't earn all the money, and no one sets such goals for themselves. In addition, all people are different: some spend 2 hours a day on trading, while others spend every free minute at the monitor. It is also important that not at any given time even an experienced specialist can accurately predict where the price will go. The task of a skilled and successful trader is to choose for transactions only those moments when the movement of the currency is well predictable.

Is it true that real success in Forex is a kind of closed book, which no one has seen, and if they have seen and read, they will not show it?

Speculative Forex trading is an important source of income for many banks, investment and hedge funds. Some information can, of course, be gleaned from their dry reports, but this profit is made for banks and funds by very real living people. But we are used to talking only about those we know personally. People working in the financial sector communicate with each other, and each of us who has been working in the market for a long time has heard many stories from colleagues about successes and failures, and could tell a lot himself.

However, it is known that money loves silence, and therefore not every trader will tell the first person he meets about his successes. Someone is afraid to "jinx it", causing envy to themselves, while the other does not want to dissipate their forces on unnecessary chatter.

If someone offers their Forex trading advice for money, is he just a theoretical analyst with no practical experience?

People who offer their services privately may have different motives. Among them there are both highly reputable professionals and pure theorists with no practical experience, and just adventurers. Before using someone's recommendations, try to get more information about the trading results of your future consultant, about the methods of his work, find out how others speak about him.

It only takes luck to be successful in Forex, right?

Successful Forex trading depends on a number of factors. Chief among them:

• thorough study of all aspects of Forex trading;
• reading specialized literature on financial markets (a list of recommended books and disks is in the "Training Materials" section);
• work with analytical materials on the foreign exchange market, such as, for example, the Dow Jones news feed;
• thoughtful and verified trading strategy;
• cooperation with a reliable company that has been working in this service sector for a long time.

Is it true that Forex is a kind of "pyramid" where only those who came here long ago earn money?

Millions of people around the world trade on Forex. Among them there are those who have been doing this for a long period of time, and those who are just taking their first steps in Forex. Therefore, you can also start trading in the foreign exchange market right now and ensure your financial independence.

Is it true that only banks and organizations with large amounts of money can trade on the Forex market?

Anyone can trade on Forex, because you can start trading with a relatively small amount of money.

Another thing is to understand the very logic of the movement of currencies in Forex and find patterns, it is necessary to study the mechanisms of making daily trading decisions in the largest financial institutions in the world. After all, it is they who sell and buy the largest quantities of currency, which means that it is their decisions that drive the market.

Is it true that the lower the spread, the more profitable the trading conditions?

No. Spread is not the most important thing in trading conditions. Why?

First, announcing very low or near-zero spreads by a company is most often a common marketing ploy to attract customers. At the same time, in the terms of trade, imperceptible reservations are always made about the possibility of widening the spread during faster price movements. In practice, this means that a low spread is provided in individual real trades, but for the most part, such a spread is retained only in indicative quotes, available for public viewing, and on demo accounts. In many cases, a much higher spread may be offered to the client when concluding a specific deal. Or the quote is simply shifted to a disadvantage for the client, especially when closing a deal. This is understandable, because spreads are the main source of income for a dealing company,

Secondly, populist statements about practically zero spreads, as well as other unrealistic conditions for the market, are often resorted to by newly formed companies that are just looking for their niche in the financial services industry. If a company does start to deliver on its promises, then it is a shortsighted policy anyway. And it is necessarily associated with high risks for such a company and for its clients, and therefore is incompatible with long-term financial stability, stable income of the company itself, and therefore with reliable bank guarantees for the safety of your deposits and your profits.

And the last thing: very often to conclude the most profitable deal, timely and accurate service is much more important, which allows you to quickly get a quote that suits the client in case of rapid price changes. And if a very low spread is prescribed in the trading conditions, then it is impossible for the company to quickly conduct a transaction at this price on the market.