The Forex market can be daunting to newcomers, and it can even be tricky for professionals with many years of experience. Having said that, there are some common misconceptions about the Forex market that you should be aware of so that they do not affect your experience. We’ve compiled four of the most common Forex myths to help you out there:
1. It’s possible to be right every single time.
In life, and in Forex, it is NEVER possible to be right every time. Mistakes and losses happen all the time in Forex hedging and transfers. If you try to find a strategy that will guarantee being right every time, it will simply leave you feeling frustrated and demotivated. A strategy that has been overly optimised won’t allow for any adaptation, and this is a problem because a continuously changing market needs flexibility. Your focus needs to be on finding a strategy that works for you and your business. This is why you need a company like ForexPeople to help you with innovative hedging strategies that are tailored specifically to your particular business need and current situation.
2. You can ‘get rich quick’ through the Forex market.
False advertising in the Forex industry has led many people and businesses to believe that joining the Forex market will allow them to ‘get rich quick’. Before you even think about getting involved with hedging Forex, it is important to note that it is not going to be a ‘get rich quick’ scenario, it’s more a “stay safe” scenario. It’s more about working out how best you can utilise a Forex intermediary to help protect you against exchange rate uncertainties rather than how you can make a quick buck!
3. Understanding the Forex market is easy—you just have to follow what others are doing.
While watching others trade and hedge on the Forex market is very beneficial and educational, it is important to remember that you are in charge of your own business, money and assets. This means that only you will benefit from your gains, and only you will suffer your losses. It is therefore up to YOU to determine what risks you will be willing to take. An intermediary like ForexPeople can help by supporting you, explaining the risks and advising in a specific strategy tailored to your business.
4. Being able to predict the market will allow you to make money.
No matter how well you think you know it, one can never wholly predict the Forex market. And, in fact, thinking that one can predict the market has led to the downfall of many a business. Prediction is just simple guesswork which often causes businessmen to become blind to their own mistakes. It is far better to rely on an educated strategy that you and your Forex intermediary have agreed on than a prediction or a feeling of what the market is going to do.
Unfortunately the reality is that Forex is a tricky game and it can very positively or negatively affect your bottom line. So rather than wing it… and hope for the best, take these Forex myths into account and let an intermediary like ForexPeople help show you the way and protect your business.