3 Forex Trading Myths Busted

Whether you’re an experienced forex trader or just a beginner, I’m sure you’ve already come across some generalizations about trading.

But be careful! Some may have some truth, but these three are nothing but myths.

Here are three of them:

1. “Try often enough and soon enough you will succeed.”

Maybe we have Disney to blame for having this fairy tale mentality, believing that anyone who follows the market 24/7, takes the most change, and gives up their entire social life will be rewarded with a happy ending.

Sorry to burst your bubble, but the forex market doesn’t give a damn about your efforts.

You don’t have to pull the trigger on every setup you see or watch the charts all day to make a living trading forex. And traders have to have a life, you know.

To be consistently profitable in forex trading, you need to hone your skills and develop your skills.

This means work on things you can control, so stop depending on good karma to reward yourself with pips!

2. “As long as I have discipline, I’m safe.”

Don’t get me wrong, discipline is definitely necessary to be successful in forex trading, but there are still factors that could hinder your trades and turn them into losses.

You may not have spent time practicing on the demo first or testing your forex strategies before going live. Or your trades could have been affected by black swan events or other unfortunate market movements that a trader can’t really prepare for.

Anyway, traders can still be disciplined AND lose their trades or even accounts.

It’s all part of the game!

3. A trader’s number one enemy is his emotions.”

Traders have been told time and time again to keep their emotions in check.

Being vulnerable to your emotions can have negative repercussions in trading as your concentration and decision-making process can be distorted.

But think for a second. When do you feel most stressed? Is it at those times when you trade poorly?

If you answered “Yes!” to the second question, then congratulations, you are a normal human being.

Emotional stress is a natural result of poor trading performance. This happens when traders fail to manage risk properly or trade without any objective advantage in the markets.

What then results is a vicious cycle where negative emotions can affect trading performance.

Always remember that trading is a performance field, where success is the result of a combination of talents and skills. And as with discipline, controlling your emotions is a crucial factor, but it’s not the only ingredient to success.

Mastery of trading psychology simply dictates how consistent you are with applying your talents and skills, but it cannot replace these factors.