The Common Misconceptions of a Forex Trader.

The Common Misconceptions of a Forex Trader.

The Common Misconceptions of a Forex Trader.
The Common Misconceptions of a Forex Trader.

A forex trader is a person who trades, buys and/or sells currencies on the foreign exchange. Forex trading is a global and extremely profitable market to buy and/or sell. As one of the biggest global marketplaces forex draws a massive size of traders of diverse backgrounds and expertise levels.


There are various basic misconceptions about forex that are sold as realities, particularly to new traders, by individuals who don’t comprehend the forex markets. Normally, a market this well known additionally has its misconception. In this article, we plan to expose some forex misconceptions that appear to have gotten rather popular, particularly among retail traders who do not have the advantage of professional or academic training so that they can trade with certainty.


1. You Need to Have a Lot of Money to Trade Forex:

If you have chosen to, or are as yet thinking about whether to turn into an expert forex trader, you’re most likely asking yourself questions such as, ‘What amount of money do you have to begin Forex trading?’ or ‘What is the base sum required for forex trading?’ How much capital you’ll require to trade forex is one of the primary concerns you have to consider if you want to become a forex trader. Which broker you pick, trading platform or strategy you use are all fundamental too, however, how much money you start with will be a huge determinant in your definitive success.


Gone are the times when you need at least a million to start trading on the forex market. You need not be a large brokerage firm or international bank to be able to trade foreign exchange. Ostensibly, the Internet has risen as one of the most momentous and troublesome advances throughout the entire existence of humanity. Via the internet, you can trade forex in your comfort zone. You can even become a brokerage firm that provides traders with access to a platform that allows them to buy and sell foreign currencies.


Forex brokerage accounts can now be opened for as meager as a few thousand nairas. With the help of a satisfactory internet connection and little money, you can trade currencies online from actually anyplace in the world.


2. You Need Complicated Strategies to Make Money:

Various new and seasoned traders are compelled to assume that they need to have complex trading strategies to make money trading the forex markets. However, this is not true. Many forex traders who apply difficult trading systems do not make money at all.


Frequently the best forex trading strategies are the straightforward pattern following straightforward frameworks that line up with the predominant patterns in a given market. Most complex trading frameworks have an excessive number of factors that are difficult to monitor, in some cases prompting misfortunes.


3. You Need an Economics or Finance Degree to Trade Forex:

The beauty of trading derivatives is that anyone can trade global markets from their comfort zone, with a good internet connection, anywhere in the world. Trading derivatives turn individuals into retail traders who trade the global market for and with their accounts. Accessibility is one of the major advantages of retail forex trading. Note that the forex market is the largest and most liquid market in the world. The capital requirement is also low. Anyone can readily start trading with a small amount of initial capital. Another advantage of retail forex trading is that it is easy to setup. Online-enabled platforms readily allow individuals to set up their accounts for free and start trading. Automation is also an advantage. Platforms from brokerage companies such as Eagle Global Markets CloudTrade platform have built-in features and tools for setting up automated trading using a set of rules or conditions.


One of the more interesting facts of forex trading is that many professional traders do not necessarily have advanced degrees related to this field. At Eagle Global Markets, we do not only provide you with a platform to trade forex. We take your hands every step of the way. We pride ourselves on the fact that we conduct free online webinars and in-houses classes to our clientele to ensure that they get a hang of what the markets entail. So who then can trade global markets? The 9-5 workers, the pepper seller, the National Youth Service Corps member, the students, the stay at home moms. Anyone can trade the forex markets.


4. You Need to Watch your Screens All the Time:

A forex stop loss is a function offered by brokers to limit losses in volatile markets moving in a contrary direction to the initial trade. This function is implemented by setting a stop loss level, a specified amount of pips away from the entry price. The first benefit of entry orders is the control they provide over price level. Traders can show their ideal price level entry point where the trade will execute. Having this capacity to pick a level allows for the simplicity of trading without having to continually monitor the market.


Forex entry orders also aid keep traders accountable. This is because they exclude the possibility of emotions getting in the way of solid, profitable trades, and make sure traders are following the rules to the latter. Furthermore, some traders prefer to fully automate their trading plans or use a forex trading system that trades without human intervention.


5. You Need to Predict What is Going to Happen to Make Money in Forex:

Since geopolitics impacts the forex markets, the traders who make money are the ones who rush to respond to the things occurring all over the world, as opposed to the ones making expectations or predictions.


Trading forecasts can in some cases be made. This might be conceivable by examining the charts and perceiving certain examples that have happened before and accepting they may happen once more. However, generally, it is somewhat the snappiness of response that makes trader money rather than beginner expectations or predictions which could work out as expected. A decent trader is constantly cautious, peruses and deciphers the news and is continually ready to learn and advance.


In Conclusion:

Here we have covered some of the common misconceptions concerning the global forex markets, but this should only be used as a starting guide. Opening a live account with Eagle Global Markets is a good way to test our services as it allows you to try out your trading strategies.



Think we missed something? Let us know in the comments section below.






-WINSALA Gbotemi.

-Staff Writer, Eagle Global Markets.

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