If you are involved in the forex industry for any length of time, you will inevitably hear a number of mantras about forex trading. Some are true but some are just pure nonsense, so let's expose three of the main forex myths.
The first statement that is blatantly untrue is that you have to be at your computer all day every day, and trading lots of positions on a daily basis in order to make the big profits. The fact is that this is very bad advice because for a start intraday trading is exceptionally difficult, and only a very small percentage of day traders actually make consistent profits trading this way.
It's much easier to use 1 hour, 4 hour or daily charts, for example, to trade the markets. Yes you will trade a lot less positions, but the ones you do trade are likely to be more significantly profitable because there is less noise on these charts, and the price movements are more likely to conform better to technical analysis.
The second myth is that you should always place paper trades before you trade for real using a live account. Some would argue against this but I personally feel paper trading is essentially useless because you're under no pressure whatever, so it does not reflect real-life trading at all.
Demo accounts are slightly better but again there's no pressure so their usefulness is questionable. In my opinion you're much better off opening a live account and only trading small stakes because there's no better way of learning than when every trade matters and there's real money at stake, even if it is small amounts.
The final forex myth is that forex trading is easy. Now let me assure you that it most certainly is not. I've been trading for several years and know for a fact that this is not true. You only have to look at industry statistics which show that only a tiny percentage of traders actually make money from trading.
It can become easier with experience and after you have developed a profitable trading system, but even then you face constant challenges when trading the markets. Even the pro traders who make consistent profits go through challenging periods when things go against them.
So to sum up this article, three very common forex myths are that forex trading is easy, paper trading is the best way to learn how to trade, and you need to trade lots of positions every day in order to make the big profits. These are all untrue and anyone who comes out with any of these statements is basically talking nonsense.