Myths about Forex

Updated on December 22, 2023

Some Common Myths about Forex:

 * To earn on Forex, you need to track the market 24 hours a day, without wasting time on food and sleep?* Is it true that the real success in Forex is a kind of closed book that no one saw, and if you saw and read, it will not show?* Who is the author of textbooks and other books on Forex – non-practicing theorists and analysts?* If someone offers their trading tips on Forex for money, is he just a theoretical analyst without practical experience?* Traders are really superprofessionals, which can become a few units?* To be successful in Forex, you need only luck, is that so?* They say that to earn money on Forex, you need to have good friends in the leading banks of the world, who quickly supply the necessary information about the expected fluctuations in the exchange rates?* Is it true that learning to work in Forex is expensive and takes a lot of time?* Is it true that Forex is a kind of “pyramid”, where only those who have come here for a long time are earning?* Is it true that only banks and organizations with large amounts of money can trade in the Forex market?* Is it true that the lower the spread, the more favorable the terms of trade?* Is it possible to regularly make profit by working forex?

To earn on Forex, you need to track the market 24 hours a day, without wasting time on food and sleep?

No one is following the market all the time. Each trader chooses his own hours of work convenient for him and trades when he sees an opportunity for this. Of course, at a time when a trader is resting or busy with another business, he misses a lot of profitable trades. But you can not earn all the money, but nobody sets such goals. In addition, all people are different: some spend on trade 2 hours a day, while others spend at the monitor every free minute. It is important to understand that even an experienced specialist can not at any time accurately predict where the price will go. The task of a skilled and successful trader is to choose for trades only those moments when the movement of the currency is predictably good.

Is it true that the real success in Forex is a kind of closed book that no one saw, and if you saw and read, it will not show?

Speculative trading on Forex is an important income item for many banks, investment, and hedge funds. Some information can certainly be gleaned from their dry reports, but this profit makes real banks and funds for real people. We are used to talking only about those we know personally. People who work in the financial sphere communicate with each other, and each of us who has worked on the market for a long time, heard from colleagues a lot of stories about successes and failures and could tell a lot himself. For more than 20 years of the existence of the TeleTrade Group of companies, under the brand of Teletrade Group, thousands of successful professionals working in different countries of the world have been trained, who have made trading in Forex their profession. And a much larger number of private investors who passed our school,

However, as you know, money likes silence, and therefore not every trader will tell the first one about his successes. Someone is afraid of “jinxing”, causing jealousy, and the other does not want to spray their strength on unnecessary chatter. As for the results of trading on specific accounts, then, of course, this information is confidential.

Who is the author of textbooks and other books on Forex – non-practicing theorists and analysts?

Analysts of the company “Teletrade Group”, as well as specialists of partner companies are the authors of several popular books on the foreign exchange market Forex. Among them, such bestsellers as “Forex is easy” (author – Irina Kaverina, head of the educational center – partner of our company, a trader with many years of experience), “Forex: from simple to complex” (authors – IV Morozov, currently a teacher at the Finance Academy under the Government of the Russian Federation, and RR Fatkhullin, one of the developers of the MetaTrader trading platform), “The art of being quiet. Mechanisms for making trading decisions in the Forex market “(author – Petr Pushkarev, leading analyst of the TeleTrade Group of Companies, a trader with many years of experience).

If someone offers their trading tips on Forex for money, is he just a theoretical analyst without practical experience?
People who offer their services privately can be guided by different motives. Among them there are both professionals with a good reputation, as well as pure theorists who do not have practical experience, and even simple adventurers. Before using someone’s recommendations, try to get as much information as possible about the results of your future consultant, about the methods of his work, find out how others are talking about him.

All analysts of Teletrade Group and TeleTrade Group companies have extensive experience in concluding profitable transactions in the Forex currency market.

Traders are really superprofessionals, which can become a few units?

Among successful traders – people with different levels of education, technical and humanitarian mindset, unlike each other, men and women of different ages. Any person who has expressed such a desire can become a trader. Sign up for a free Forex seminar from the TeleTrade Trading Academy and see for yourself! And your personal results of the training trade will show how successfully you manage to apply the acquired knowledge. This will help to understand whether you have the makings of a currency trader, as well as assess the level of potential success.

To be successful in Forex, you need only luck, is that so?

Successful trading on Forex depends on a number of factors. The main among them are the following:

thorough study of all aspects of Forex trading;

reading of specialized literature on financial markets (a list of recommended books and CDs is in the “Teaching materials” section);

work with analytical materials on the currency market, such, for example, as a news line Dow Jones;

well-considered and verified trading strategy;

Cooperation with a reliable company that has long been working in this sector of services.

They say that to earn money on Forex, you need to have good friends in the leading banks of the world, who quickly supply the necessary information about the expected fluctuations in the exchange rates?

All the necessary analytical information on the state of the currency market can be obtained from the news line Dow Jones PRIME-TASS, the content of which is not only news, but also a summary of the markets, as well as comments of professional analysts. During the day, several reviews of the foreign exchange market with forecasts are published.

News line Dow Jones is a stream of the most actual news in Russian and English languages, which comes in real time 24 hours a day 365 days a year. This is an information-analytical product of the premium class. It is intended for currency traders, as well as for all those who are interested in obtaining detailed and maximum operational information about the world financial markets.

News line Dow Jones PRIME-TASS is available to all our clients who have both real and demo accounts. This service is free for Teletrade Group customers.

Is it true that learning to work in Forex is expensive and takes a lot of time?

The TeleTrade Trading Academy offers free distance courses for beginners and experienced traders. During the training you can get both basic and advanced knowledge about Forex trading. In addition, you will work on a demo account, learn the strategies of behavior in this market, consider examples of successful trading and scenarios of the behavior of traders in different situations. You will learn how to predict the movement of prices, learn how not to fall into the trap, understand the reasons for changing the market and will be able to make your own trading decisions.

Is it true that Forex is a kind of “pyramid”, where only those who have come here for a long time are earning?

Forex trades millions of people around the world. Among them there are those who have been doing this for a long time, and those who are just making their first steps in the foreign exchange market. Therefore, you can also start trading on Forex right now and secure yourself financial independence.

To learn more, go for free training and open a demo account! Your personal results of the training trade will show how successfully you manage to apply the acquired knowledge. This will help to understand whether you have the makings of a currency trader, as well as assess the level of potential income.

Is it true that only banks and organizations with large amounts of money can trade in the Forex market?

Anyone can trade on Forex, because you can start trading by having a relatively small amount of money.

Nevertheless, in order to understand the logic of currency movements on Forex and find patterns, it is necessary to study the mechanisms for making daily trading decisions in the largest financial organizations of the world. After all, they sell and buy the largest lots of currency, which means that their decisions are driving the market.

Is it true that the lower the spread, the more favorable the terms of trade?

No. Spread – not the most important thing in terms of trade. Why?

First, the company’s announcement of very low or almost zero spreads is usually the usual marketing ploy to attract customers. At the same time, in the conditions of trade, imperceptible reservations are always made about the possibility of widening the spread with faster price movements. In practice, this means that a low spread is provided in individual real transactions, but for the most part this spread is retained only in indicative quotes available for general review and on demo accounts. In many cases, at the conclusion of a specific transaction, a client may be offered a much higher spread. Or the quotation is elementary shifted to the disadvantageous for the client side, especially when the transaction is closed. This is understandable, because spreads are the main source of income for a dealing company,

Second, populist statements about practically zero spreads, as well as other unrealistic conditions for the market, are often resorted to by newly formed companies that are only looking for their niche in financial services. If the company really starts to fulfill its promises, in any case it is a short-sighted policy. And it necessarily involves high risks for such a company and for its customers, and therefore is incompatible with long-term financial stability, stable revenues of the company itself, and therefore with reliable bank guarantees for the safety of your deposits and your profits.

And the last thing: very often for the conclusion of the most profitable transaction it is much more important to have a timely and accurate service, which allows you to promptly receive a quote that suits the customer when the price changes quickly. And if in the conditions of trade there is a very low spread, then it is impossible for the company to quickly make a deal on the market at this price.

Is it possible to regularly make profit by working forex?

Forex has existed for more than 30 years, and during this time a huge number of people have made trading in the foreign exchange market their profession, receiving a regular stable income. As for our country, here the opportunity to trade on Forex appeared in the early 1990s, and since then hundreds of thousands of people have chosen the work of a currency trader, gaining financial independence.