Forex trading is one of the most popular and attractive investment destinations for people across the world, including here in Malaysia. However, when looking from a statistical standpoint, a majority of traders end up losing more money than they gain in this trade. In order to succeed in this space, one would need to understand some of the basic reasons why this occurs. There are misconceptions and false beliefs that most traders, especially the ones relatively new to this space, carry into the scene. In this article, we’re going to be tackling them one by one.

Misconception 1 – The ‘magical’ solution

If you believe that there is a single indicator that can help you win trades or a single strategy that can bring in more profits, then you are falling prey to the above-mentioned illusion. There is nothing that is definite and fixed with this trading space, and the market moves in a dynamic, unpredictable manner that is mistaken by people who have this misconception.

Misconception 2 – Making money quick and easy

It is true online trading can be carried out from the ease and convenience of your home forex robot . And theoretically, it would also be true that you could bring in vast amounts of money with a few short trades. However, the practical representation of this is vastly different. Winning money here is a slow and steady process that comes through discipline, training, and experience.

Misconception 3 -High-speed operation

There are those that believe that to make money, you would need to work at your highest speed and rush through transactions. The opposite is true with forex exchange. One would need to devote more attention to logic, strategy, and analysis than speed.

Misconception 4 – Expensive education

The idea that you would need a more expensive, elite education to perform better has taken root among sections of the trading community. However, the reality is that some of the most successful traders have grown through self-education, having won over their information through news, articles and casual internet sites rather than through expensive courses. One could do the same with his trading career, and view education as a long-term, lasting process rather than one that is gotten over with the use of more money.