TOP 8 FOREX TRADING LIES

by Ntombi Malatsi | Aug 11, 2015 | FOREX FOR BEGINNERS

There are so many lies told by Forex traders

After some few years of being in this industry, trading Forex market has been one industry that is mostly bombarded by scammers, I see people being lied to everyday, including my friends and family members, they just won’t listen even when I try to warn them, it seems like everyone who wants to run a pyramid scheme finds it very easy to hide behind the Forex umbrella. Forex trading itself is a legit business opportunity, but the truth is, not everyone can make it and it is definitely not for everyone, mental stability and approach has a lot to do with who will make it and who will not. Forex trading is fairly new in south Africa and unfortunately it seems to be attracting everyone who is looking for a quick buck, and people are becoming easy targets, I can blame that on the social media though and how it is presented to people by those who are doing it, it is exaggerated and glamorized, there is so much hype surrounding it and no one really care to tell it as it is, everyone is just painting a wrong picture, which says ” easy money”, everyone is sharing the end product, not the sweat that goes in before they actually made it and for that reason people who are new to this business are mostly excited about everything and anything, enough about that now, let me not delay any further and just get straight to it, listed below are some of Forex trading lies I used to believe, I am glad I grew up though and I stopped believing in them, I learned the hard way though. Do not believe any of these lies.

1.Forex trading is easy money

Truth: NO, definitely not, as much as there might be some truth in this statement but the reality is, you will have to know how to do it in order to make it, experience makes you even better, and knowing it won’t just happen after attending one seminar or following some forex group or forum, so please do not believe it.

2.To increase your chances of making money, you need to trade a lot everyday and even miss sleep

Truth : NO it is a big lie, you do not need to do that, I have done it, I have seen people doing it, I see people doing it even now, but still don’t make money, I did it also and I always felt the urge to trade, I felt super smart trading everyday until I realised I was being foolish. The thing is, everyone who is new to Forex trading suddenly feel like the whole world need to know that they are now traders and the social media need to be updated about every move they make and in the process they miss what is more important which is the fact that success in this business is not in quantity of trades but quality. And trading like crazy does not really make you more money, by making money I mean taking it out of your trading account and taking it home, that is what I mean.

3.Price movements on currencies are just random

Truth : NO it is a big lie, nothing happens randomly, the thing is, markets seem to respond to economic events that affect specific currencies, so NO it is not random, if we never had economic events there won’t be charts to read in the first place, because charts collects data from the past and report it to us, no economic event, no data and no charts, I have since learned that now, but I believed  the lie for such a long time until I realised I don’t really like the surprises that I always got due to the price movements caused by an economic event that I knew nothing about. After all, currencies are prone to the increase of interest rates and all other important data released like GDP and retail sales in their respective countries.

4.Forex is like betting horses

Truth : NO, I might not know how the whole batting horses thing work, but I do know there are no economic events influencing the whole process of which horse wins or lose, I also know that when Yellen  or Mario Draghi speaks or when NFP take place, the world of currencies react not horses. There might be some truth in this though especially when people treat Forex trading as some game that is played by people who love computers, I now smile as I write this one.

5.You can turn $200 into a whooping $10 000 in just a week trading Forex

Truth : NO this is the biggest lie, this statement is one of the biggest Forex trading lies, the one that makes people to go crazy out there whenever they see the word “Forex”. It is very possible I agree, but also very deceiving as it is not possible to do so with such small start-up cash, I am glad I stopped believing it. Gambling tendencies begin by believing this lie, being a realist saves me from trouble now, if you want to make $10 000 in a week, yes you can, but your start-up cash has to be higher as well definitely not $200.

6.All it takes to make money is to open a live account with a broker and boom!! start making money right away

Truth : NO, you might not need to have a degree in economics but you sure need some kind of education, and I see some people are so brave to just open a live account while they’ve never even heard the word currency before (guilty as charged, I did it also, I was deceived and lied to), some cannot even use a computer that is how bad the lies are. Do not believe this lie, find a mentor, funding a live account and depending on a broker to call you does not work, if you don’t know what you don’t know it is hard to learn or make sense of anything, that is where I started also, an hour call with a broker never really made me money, it works when you already know how to trade, otherwise you remain confused the whole time on the phone.

7.You can just open live account and buy the signals to succeed:

Truth : this one is not a total lie, but the bad thing about it is when you totally depend on paid signals and yet know nothing about trading, learn to take care of your own money, if you want to invest in Forex, invest in education first before investing money, otherwise you are going to donate it to the markets.

8.Forex trading is for men:

Truth : NO it is a lie, I don’t even need to say much, because I am a woman and I am a Forex trader, market does not care about gender.

That’s all for today, stay alert and stay smart, remember the market doesn’t know you exist, so trying to be clever is just a waste of time and money. Thank you for stopping by, you are loved and appreciated. Let’s blow the whistle by sharing this post using the share buttons below, let us stop the lies and enjoy trading financial markets, if you are currently being lied to,  snap out of it and you will enjoy trading forever.