Forex Myths & Mistakes – Beginners Guide
You've swam through the valley of darkness swerving from one bucket-shop to the next but finally you have arrived at the light at the end of the valley. Dukascopy is one of the largest ECN brokers providing it's customers with direct access to Forex markets. It's pledge of transparency and it's non-dealing desk execution guarantees that you will receive the best trading opportunities available. However I know that you have swam from far and beyond to finally arrive at this utopia, which is why I must liberate you from the falsehoods spread by bucketeers. Once you have been cleansed of these falsehoods you may finally be prosperous in your trading activities and be able to take full advantage of the opportunities offered to you by Dukascopy.
Get Rich Quick
Apprentice traders often think that they can get rich without risk, skill, investment, effort or time. A misconception spread by advertisements all over the internet promising seven figure incomes. Forex is extremely challenging, stressful, time consuming and risky. There is a fine line between trading and gambling, establish which side you want to be on. If you want to be a trader then you have a steep learning curve ahead of you which includes Macroeconomics & Econometrics along with a multitude of other skills. The gamblers amongst you don't need any of this knowledge but your trading days will be short lived as you will most likely lose your account in days rather than weeks.
Beginners often try to maximize leverage ignoring the increased risk of a margin call. Figure out which leverage option is suitable for you by reviewing your trading strategy along with your starting capital. Professional traders working for banks rarely use leverage above 1:10. However I'm aware that some traders here are working with very small amounts of capital which means it's seldom impossible to make any respectable return without using the higher leverage options. There is no ideal leverage amount as it's entirely subjective which is why you must spend time evaluating what leverage amount is right for you.
Algorithmic trading can be really rewarding but you need to design your own system or improve somebody else's. Don't expect to become rich using an out of the box solution because winning systems rarely get released out into the wild. Spend time learning how to use the JForex platform and test your theories using the Dukascopy historical tester. Investing time in learning how to compute your theories into code will save you a vast amount of time in the long run as you evaluate your ideas to establish whether you have an edge or not.
Expensive Ebooks & Other Costly Forex Products
The internet is filled with shady wordsmiths looking to peddle you something that's going to make you millions. All you have to do is follow three easy steps and abracadabra, you become a successful trader. Don't be fooled by this gibberish offered to you by self proclaimed gurus looking for vulnerable prey. The knowledge they are offering you is available all over the internet for free. If you are gullible enough to still buy these ebooks then I suggest you contact me as I wish to sell you a enchanted potion of currency trading. Assembled by George Soros and blessed by the Vatican bank, this potion is guaranteed to make you billions.
Free Rider Problem
You can scour the internet for ideas, theories, concepts, strategies and other trading tips but even if you are fortunate enough to find something that works, it will only bring you temporary success. You must invest in yourself and bring about confidence that you can create your own strategies and theories, without having to rely on other traders because that's the difference between a good trader and a champion trader. As the old saying goes, give a man a strategy and you feed him for a day. Inspire a man to create his own strategy and you feed him for a lifetime.
With the tales of the bucketeers now long forgotten and your faith in Forex gradually repaired. You may now continue on your journey to become a lucrative trader. Your longing search for an honourable broker is finally over but your study of Forex has only just begun. Join the community and sign up for the contests to become more familiar with the platform whilst improving your trading skills.