TOP 5 MYTHS ABOUT FOREIGN EXCHANGE IN INDIA

TOP 5 MYTHS ABOUT FOREIGN EXCHANGE IN INDIA

Foreign Exchange in India is becoming more and more popular recently causing more and more debates about it. I would like to present some very expanded misconceptions about Fx market, which may be beneficial for those Indians who do their first steps in this market.

1. Forex trading is quite easy

Many Forex India traders think that earning money through Fx market does not require any special education or any skills. Reading a couple of books is just enough to become a trader. This is what most people think. But anyone should know that studying Forex is equal to acquiring any profession and that is why it costs time, money and a lot of practice.

2. There is a Forex company

This is one of the most widely spread misconceptions about Forex. Remember that Forex is something abstract; there is no concrete place where it has been founded, so it cannot have any office. The Foreign Exchange transactions can be realized by brokerage companies. These serve as intermediary for those who want to dive into the world of Forex. So, any Forex India trader should realize that he is able to cooperate with any brokerage company no matter where it is based.

3. Commission is to be paid to brokerage companies.

The profit of any brokerage company is formed out of spreads, the difference between sell and buy prices. A brokerage company does not charge any fees.

4. “I need to have a great amount of money in order to start trading in Fx market”

Most people think so, since they do not have any notion about being able to trade with even 1USD. So, as you see, Foreign Exchange market is formed in a way that any person gets an opportunity to become the participant of Fx market.

5. “I want to exactly predict in what direction the market will move”

Keep in mind that a market which trades with floating rates of exchange cannot be predicted with 100% certainty. Fundamental and technical analyses have arisen for forecasting the market direction. However, these methods only function for approximate predictions.
As a smart Forex India trader you need to stay away from these stereotypical myths and always remember that the key to success is to closely study this field and what is more important to construct you trading psychology.