There are hidden truths and well-accepted lies in Forex trading in MetaTrader 4. Some lies are so convincing and too sweet to the ear. Then people start to accept these lies instead of the hard truth. Until later, they come across the harsh reality of the Forex market. But, it’s all too late, the lessons were taught the hardest way.
So, before you jump to conclusions that the Forex market is simple to handle, allowing you to double your money the fastest way, check out these common misconceptions that have been going around nowadays.
You Can Take Control of the Market
This statement is actually an illusion more than a misconception. New traders claiming to be experts are so full of themselves. They are too confident that they are in control of the market. But as soon as you realize these things, the market starts to play with you. You get ambushed right then and there. Experienced traders call this the ‘curse of trading’.
When trading, you need to accept that there are uncertainties along the way. Everything is unpredictable. When you have this mindset, you get to prepare yourself for the things that are about to come. You have to accept it. You can never take full control of the market. You might have gained some wins but it doesn’t mean that you are sure of the movement of the market like the palm of your hand. If you accept the problem, you will find the solution to it.
Stop Loss is Not Necessary for Trading
Did you also have this misconception even once in your entire trading life? Believe it or not, there are still a lot of traders who are not well-aware of the capabilities of a stop-loss.
Just like its name, a stop loss stops you from incurring too many losses. If you do not have a stop loss, your capital will be put in a vulnerable state. Then, you have to face boundless risks. When this happens, you will get trapped and your account will be put in danger. Defining your stop loss will help you control your emotions. Therefore, it is important to define your stop loss right before entering a trade.
The System Will Perfectly Work, 100%
You cannot foresee the future no matter how expert you are. Therefore, you will never make a trading system 100% perfect. The fact is, both charts and data will never move the market. Instead, it is the trader and their emotions that drive the financial market. For instance, you have double tops and the bottoms also often fail. Why is this so? This is due to the fact that traders are willing to buy or sell no matter the pattern. It might not be a day-to-day phenomenon but it surely happens once in a while.
Trading And Gambling Are The Same
There’s a huge difference between gambling and trading in MetaTrader 4. In gambling, you are betting without all sorts of logical thinking while trading allows you to take up a calculated risk.