If you are a new FX trader and want to learn the truth about forex trading as it applies to you and your trading business, one of the first things you should understand is that many myths about trading have arisen over the years. 

Some of these beliefs arose due to how things used to be in the forex market before retail traders had access to online forex trading. Others were most likely exaggerations based on isolated occurrences that were not reflective of the forex market as a whole.

I will concentrate on myths that either have no present basis or appear to be based on rare incidents that are ordinary for the forex market in general.

Myth No. 1: You can make an easy amount with FX trading

Never, any asset class is difficult, requiring a unique combination of abilities and approaches.

What is simple in forex trading is opening a trading account and beginning to trade. On the other hand, making consistent gains is different because the currency market is significantly more volatile than equities, bonds, or commodities markets and trade 245.

To maintain a high success rate and generate money in forex trading, you must develop a trading strategy, test it, and stick to it.

Myth No. 2: Forex is for short-term traders

One of the most common myths about forex trading is this. Forex trading is often believed to be only effective for short-term positions and would better fit long-term investors to invest in other asset classes. That, however, is not the truth.

You can devise profitable long-term forex trading strategies for a currency pair by examining geopolitical links, the present macroeconomic position, interest rates in both nations, and so on. A good long-term call made after careful research can yield far more profit than many short-term calls combined. It will also decrease your stress levels because you will not participate in minute-to-minute trading.

Myth No. 3: High leverage is good

Most foreign exchange brokers in India market themselves by highlighting the large leverage they provide to traders. This gives the idea that leverage is always beneficial and may quickly make traders wealthy. In actuality, though, leverage is a dangerous strategy that can double both your gains and losses.

High leverage can assist in enhancing profits, but it can also erode all of your trading capital and force you into bankruptcy if you get off to a bad start. As a result, never follow leverage blindly. Determine the level of chance you are prepared to take, and then carefully control the leverage on your bets.


A trader needs to study and comprehend what currency trading entails: part of this will come from experience, which is why money control is vital, and some will come from self-education.

The currency markets are filled with myths that can harm or lead a trader wrong. Develop a sound trading plan that has been personally tested, and accept full responsibility for the plan’s success or failure; this will reduce or eliminate the consequences of the myths.