1. I have no time for trading
A common misconception when it comes to forex trading is that it requires you to spend every waking moment in front of the computer. While some traders prefer doing this, it's not the only way to trade.Swing and position trading are two strategies that you can use. If you have a full-time 8-to-5 job, for instance, you can analyze the markets and trade forex after dinner. For example, you'd get home at 6 pm, take an hour or two for dinner, then analyze the markets on longer-term time frames (4-hour, daily, weekly, monthly) charts from 8 pm to 10 pm, set limit orders, and then head to sleep.
It won't be easy, but it is doable.
2. I don't have enough money
I must admit that this is an understandable excuse. Understandable, but an excuse nonetheless. The great thing about retail forex trading is that it's so easy to create demo accounts. It won't even take an hour or cost you a single cent.Now, if you're not into demo dollars, you can put up a live account for as little as $25 with no minimum position size. You can trade 1 unit if you wanted to. Just make sure that you only trade what you can afford to lose. Starting with a small investment won't make you a millionaire any time soon, but it can get you started in forex trading and feeling the psychological effects of trading real money.
3. The risk is too great
Forex trading, as with any endeavor, is truly risky without education and practice. And what many people fail or refuse to understand is that it is not riskier than just about any other investment.Like with any investment or business venture, there will always be risks involved. The key to profitability is in managing your risks by preparing for as many scenarios as you can and by controlling your emotions. If you're a total newbie to forex trading, you can start by mastering the concept of risk management (i.e., properly setting stop losses and position sizing).
Risk is present in everything we do; unforeseen events and accidents can happen at any time. Accept it and manage it like with all other endeavors in your life.
4. Currency trading is a scam
Currency trading itself is NOT a scam, but loose industry regulations do present opportunities for a lot of scammers.Check out the websites of regulatory agencies like the CFTC or the NFA or even hit up your fellow forex traders on the forums before you open an account with a broker. Of course, it goes without saying that you should avoid buying systems, strategies, and products that guarantee pips and profits. (Clue: nothing is guaranteed in the market except uncertainty!)
As with any industry, scams in the forex trading industry are usually no different from falsehoods in the other investment scenes. You just have to educate yourself and make smart decisions when it comes to investing your money.
5. Currency trading is too complicated
Out of all the excuses I've ever heard, this one is probably the silliest of them all.The Internet has made it so much easier to acquire knowledge than ever before. If you have the time to stalk your crush on Facebook and find out where he or she likes to go out for lunch, then you definitely have the time to catch up on all that there is to know about forex trading for that day.
To make it even sweeter, you don't need to pay a cent to get the education or access to forex news and tools! There's so much free, quality stuff out there!
For instance, you can learn everything you need to know by just going through our School of Pipsology. For market news, Freshpips.com offers you the latest updates on the markets. If you're looking for charting software, you can download MetaTrader 4 for free. For trade journaling, you can just sign up for a MeetPips.com account.
I understand that forex trading is still a relatively new concept that's daunting to most people. But if you're really interested in it, there's no excuse to not give it a try. With study and practice, it offers such an overwhelming potential for success!
"Ninety-nine percent of failures come from people who have the habit of making excuses."
- Renowned American Inventor George Carver
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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