The idea that “Earth is a flat square” plagued humanity for a long time. The world prospered and trade flourished after Columbus disproved the illusion. It was enlightening and revolutionary. Similarly, those who are new to the currency market are exposed to a number of myths and fallacies. It is also going to benefit your trading when you become enlightened. This is your opportunity to become enlightened. Make sure to be careful about these before starting your Forex Trading journey with a platform like ProfitRaw.
It is easy to double your money
You may definitely double your money in a variety of ways, such as real estate or business. In the context of forex trading, it is most likely.
Curious, so why is that a myth then? It is the “easy” element that draws attention, not the “double your money” component.
Trading forex is similar to other domains. As per ProfitRaw’s view you must acquire knowledge, gain experience, and then formulate a plan. Additionally, you need to strengthen your mental fortitude because emotions wear you out over time.
The three E’s—experience, exposure, and emotional quotient—thus constitute the “easy” component. Have no fear—forex trading isn’t hard either. All it takes is a little bit of hardship.
I can increase my income by using all the leverage
You certainly can. However, you ought not to.
Like a credit card, leverage has two sides.
For your system to be profitable, it must be there. However, if you abuse it, you go bankrupt.
Additionally, trying to punch above your weight causes your emotions to rise, which raises your stress level as well.
According to ProfitRaw, you must reduce the quantity of play as this is one of the best techniques to manage your emotions. It supports clear thinking and self-assurance.
The Greatest Brokers are those who give 100% bonus money
It’s a positive thing even though it’s a misperception. Because it indicates that you are aware of the hazards associated with forex trading, as was indicated in my second mistake. You are thereby taking advantage of your broker’s funds rather than employing leverage. You deserve praise because your mindset matches that of the pros!
Here’s the problem, though
The incentive has conditions tied to it. Not just one, but several. And it’s challenging to execute.
Nobody is going to generously give you their hard-earned nickels. You must merit it.
Recall that broking is an enterprise. Brokers encourage you to trade more in order for them to conduct business. This is where a platform like ProfitRaw comes in with its transparency and clear policies as well as non stop support to get your queries solved.
I’m not going to trade with a stop loss
Who among us hasn’t, at some point in our forex trading career, harboured this misconception?
It is heartbreaking when the market cuts your stop loss and then shoots towards your aim. If it occurs in repeat mode, you have to think that the reason you are not progressing is stop loss. Ironically, though, if you fall prey to this fallacy, you will forfeit the money you save in five trades in a single transaction.
Recall that if you don’t use a stop loss when trading your money gets exposed and there are no limits to your dangers.
Summing up
These are some of the most common misconceptions that traders have initially. By going through educational resources and content available on ProfitRaw you can learn quicker and use those strategies for better results. However, always make sure to maintain caution and not becoming too emotional.
