Common Myths Believed by the Majority of Losers

Most people who start to trade Forex, believe the myths enclosed and they lose money. These myths are common and generally come from vendors, trying to sell sure fire trading systems. If you want to avoid the 95% of losers and join the winning 5% who make big Forex profits - avoid these myths at all costs.

The myths we are going to look at, are in no order of importance - believe any of them and you will lose money so here they are.

Forex Robots can Make Huge Gains with no Draw Down

You have seen the track records thousands of percent in gains and under 10% draw down. You make no effort to get these gains, you plug the robot in and your on the way to financial freedom! Of course it looks to good to be true and it is. There are some robots that make money but they have long periods of losses too, Robot trading is long term and there is no getting rich over night.

You can Predict the Future

Robot traders tell this story as well and so do people selling systems based on Gann Elliot Wave and Fibonacci. These wacky theories, talk about natural order in the market and how it can be predicted but traders should think - if we all knew the price in advance, there would be no market! It's common sense really - but the far out trading community love these theories, follow them and lose. Trading success is all about trading the odds nothing more but you can make huge gains trading the odds so forget perfection and aim to make money.

Scalping and Day Trading is Low Risk and a High Reward Form Of Trading

These short term methods of trading are high risk, as you have no chance of winning. In the past before the internet, only a few traders had instant price information and they used it to get ahead of the crowd and make a tidy profit. Today this advantage has gone as we all have the price at the click of a mouse.

Working Hard and Being Clever Means Success

No it doesn't you get paid on results in Forex trading and working hard guarantees nothing. You also get a lot of clever people who are arrogant and think complicated trading strategies guarantee success but they don't. The best strategies are simple and the reason they work better is they are more robust than complicated ones, with fewer elements to break.