Common Incorrect Statements You Find on a Forex Forum
When you join a forex forum you will find certain statements are made. These statements are commonly made by the new traders on the forum. It is important that you find out what these statements are and why they are incorrect.
They have Made a Certain Amount on the Market
A lot of new traders say that they have made a certain amount on the market when they have not actually made that amount. If they still have a trade open the amount they have ‘made’ is simply price movement. You can only say that you have made a certain amount of money if you have no open trades and this amount is in your trading account.
The correct statement for people who still have an open trade is that the value of their trades has increased by the amount. Of course, people who are telling you about the amount they make on the market should be considered carefully. There are a lot of forex forum users who say they are making a certain amount, but they are not actually making this amount. These people do this for a number of reasons from making themselves more important to wanting to make others feel bad.
Forex Forum Users Stating a Sure Thing
One of the most common incorrect statements made on a forex forum is someone stating that their trade is a sure thing. There is no such thing as a sure thing on the forex market. As there is no way to predict what the market will do with 100% accuracy there is always the possibility that your trade will turn against you. There are a number of factors which can suddenly change the price movement of a currency pair.
The correct statement for these users is that they are fairly side that their trade will do well. You can never predict the amount you can make from a trade and the fact that you will make a profit at all.
Getting a Broker Who Will Beat the Market
A lot of new traders think about trading as a win and loss competition. When you make a profit you are beating the market, but when you make a loss you are losing against the market. You should never think about trading as you against the market. This kind of thinking often leads to you revenge trading when you lose on a trade. Revenge trading is where you try to get back at the market that caused to lose.
This statement is also incorrect because there is no sure way to make a profit. You will never find a strategy that always makes a profit when you trade. You will also never find a managed account that can give you guaranteed profits. If you do find a managed account that offers this then you are probably looking at a scam. The volatility of the market makes it impossible to guarantee returns and create a trading system that always wins. The market also swings between trending and ranging. This means that you need more than one strategy to make money on all market conditions.