Forex trading is an activity of buying and selling foreign currencies or foreign currencies with the aim of getting profit from the difference between the selling price minus the purchase price.
Forex trading activities have long been popular in Indonesia. But like stock trading, in forex trading also develops myths that live in the community that are actually not true and need to be straightened up so that it does not cause misperceptions.
Among the myths that develop in a society that is generally popular, among others:
1. Forex Trading Difficult and Only Mastered by Economists
People who are unfamiliar with financial markets will consider forex to be difficult to understand, complicated calculations and only those who understand economics are can trade forex.
They are considered to have the ability and knowledge of the market so they can understand the cause of the value of a weakening or strengthening currency.
But actually the myth is not true because anyone can trade forex, whether old or young, graduates or high school graduates, entrepreneurs and employees to housewives. Everyone can become a professional trader as long as they want to always learn, be consistent in forex trading and have patience.
Warren Buffet, a successful investor from the United States once said that you don’t need to be a rocket scientist. Investments are not a match where people with an IQ of 160 outperform those who have an IQ of 130.
With the help of increasingly sophisticated technology, a variety of trading tools, education and seminars such as those offered by PT Monex Investindo Futures can help you in forex trading. Â
2. Need Capital Very Large
addition complicated impression, there are other myths about forex trading, which required huge capital for forex trading. In fact, with affordable capital, you can already trade forex at PT Monex Investindo Futures.
Indeed this myth is not entirely wrong because decades ago forex brokers required a minimum capital of $ 10,000 to transact. Now, as technology advances, forex brokerage firms offer trading with smaller sizes so that trading capital can be affordable to the wider community.
But of course if you want to expect big results, need more capital.
3. Forex Trading Same As Gambling
Many who still think forex is the same as gambling. Yet it is clear the difference between Gambling and Forex.
In gambling, decision-making is based on luck or not, in other words luck. This is different from forex where decision making is based on technical analysis and is also fundamental.
In gambling there are also no products or goods traded, like gambling toggles that only guess numbers. While in forex trading there are products or goods that are traded namely currency.
4. Forex Makes Bankrupt
Like a business, forex trading must be managed properly so that it can generate the desired profit.
As with other investments, the funds used for trading are not funds that are used for daily needs or for your business needs. But the funds that you set aside specifically for trading. So, if your trading performance is not what you want, it will not interfere with your life.
In addition, there is risk management or risk management as well as business in general, namely stop loss, money management, and risk reward ratio, all of which can be learned with guidance from a trusted forex broker education team such as PT Monex Investindo Futures.
5. Always Monitor Prices in Front of Monitor
Your imagination of a forex trader may be someone who is always in front of a computer monitor screen to monitor forex prices. This view is not entirely wrong, but it is not entirely correct either.
Currently, traders can conduct forex trading activities via smartphones, such as the MIFX Mobile trading application from Monex. In addition, if you want to execute a trade at a certain price, for example you want to take a profit (Take Profit) trading of USDJPY pairs at a certain level, you can use the facilities in the application to execute trades at the price you want without you being in front of a computer screen. Â
Thus some assumptions from the public regarding forex trading that we usually encounter. Of course, the assumption that you hear needs to be proven and asked to forex trading practitioners who directly experience how forex trading really is.