1. Day trading is a great way to make money.
The correct answer is no. All short term volatility is random and you cannot win long term. That's why you never see a day trading record with a real time track record, it's always simulated. The same goes for forex scalping - it's a loser's game.
2. Trading is a gift and not something everyone can learn.
The correct answer is no. Anyone can learn forex trading if they have the right mindset. This was proved by legendary trader Richard Dennis who taught 14 people to trade with no experience in 14 days and they went on to make millions.
3. A simple trading system is better than a complicated one.
The correct answer is yes. As a general rule all the best forex trading systems are simple. There easier to understand, apply and tend to be robust. Make a system to complicated and it will have too many elements to break.
4. You don't need to work hard - effort has no bearing on profitability.
The correct answer is yes. You don't get paid for effort you get paid for being right with your trading signal and that's it. You can take 10 hours deciding or 10 minutes it makes no difference to your success.
5. You can trade the news an expert opinion and make money.
No you can't! This is rubbish, news is instantly discounted by the market and by itself does not determine price - people do. The events are unimportant its how people perceive them that are important.
6. Human nature is constant so you can use a scientific theory and predict.
The correct answer is no. Human nature is constant - but you cannot predict it with a scientific theory. If you could we would all know the answer in advance and there would be no market? Forget predicting, you will end up with results that are as accurate as your horoscope!
7. Your risk per trade is your anticipated gain minus your stop.
No it isn't. This is one of the biggest misconceptions of trading, it's simply an opinion.
8. Buying new highs is better than buying low.
The correct answer is yes. Most new trends start from new market highs (breakouts) if you try and buy low you will miss most major moves.
9. I can follow an expert and make money they know best.
They may but the best answer is no. It doesn't matter if they have made money, you have to have the discipline to follow them and that's unlikely, if you don't have full confidence and understand their method. Keep in mind, if you don't have confidence in a method, you won't have the discipline to follow it. A good method doesn't guarantee success, you need the discipline to follow it - if you don't you have no method!
10. You should always be in the market in case you miss a move.
The correct answer is no. You should only trade when the odds are in your favor and not trade for the sake of trading or hoping that you will be in the right place at the right time.
If you want to learn how to trade forex check out this link.
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