5 Common Wrong Reasons Why People Avoid Forex Trading

5 Common Wrong Reasons Why People Avoid Forex Trading

We get a lot of emails at Journey to 1000 Pips. One type of email that disappoints us comes from people who are wary of forex trading. The person expresses interest in learning how to trade currency, but they also list a number of reasons why they’ve been told they SHOULDN’T be interested.

We take this as a sign that more people should be educated about the realities of forex trading. While we won’t tell you forex trading is for everyone, there are some obvious misconceptions floating around that we know turn people off of it.

Have you ever thought that there’s gotta be a better way to make a living? We’re here to tell you that it’s possible through forex trading and it’s certainly not too good to be true.

5 Common Wrong Reasons Why People Avoid Forex Trading

5 Common Wrong Reasons Why People Avoid Forex Trading

“Trading takes up too much time.”

This is most definitely false. While learning how to trade successfully does take time and effort, we never ask that our members dedicate their lives to learning forex unless they want to. Why? It’s simply not required.

Some of our members still work nine-to-five jobs and trade in their spare time as they prepare for their financial future. Other members are already retired and trade during their free time. Either way, you definitely don’t have to set aside more than a few hours a day to trade, and even that is optional.

“I don’t have the cash.”

While having a larger account allows one to make larger returns. Growth and risk should be dictated by experience and discipline, not availability to cash.

Once graduating from a demo account with a positive track record, it’s a good idea to start live with a small amount of money, generally not more the $1,000. The reason, if your results are good, your account will grow anyway and can always be added to once a track record is in place. Protection of capital is paramount. Skill and experience develop over time so grow and add to an account as results warrent.

“Forex is a scam.”

This stems from the idea that making a decent amount of money easily is always a sham. We have two points to make on this one:

One, forex trading does require time, knowledge and effort. It’s not as if you’re making money doing nothing. Two, many forex traders exist out there. We have our own community of traders that members can utilize – they’ve profited from forex trading, so there’s no scam present.

“There’s too big a risk!”

This statement is generally heard from those that do not understand risk. Without risk there are no businesses, no growth, no opportunity. If one does not like risk, then welcome to the pension or what is saved in Super. Question is, is that enough to get you through?

If not, some degree of risk needs to be taken to acquire more then what the above two can provide.

How is risk minimized? Through education! Get educated in your field of interest whether it be Forex trading or whatever else potentially gives you an edge to a better lifestyle and retirement.

The reality is ignorance is risky, so don’t be ignorant, get educated and make informed decisions that minimize risk and maximize reward.

Specifically, in Forex trading risk has to be managed, as mentioned before protection of capital is paramount. We adhere to the concept of never risking more than 1% on any one trade using protective stops with the goal of making 2% or more. Just following that basic idea, only 40% of trades need to be correct to be making money. I wish I had been given those figures in school.

“Forex trading is too complicated.”

Anything worth doing is worth doing right – or so the old saying goes. This is definitely something we believe in when it comes to forex trading. It does take effort and education to succeed, but many potential traders have an over-exaggerated idea of how complex forex trading actually is.

We live in a world where tools are readily available via the Internet, and this applies to crafts outside of forex trading as well. Journey to 1000 Pips is one of many resources available to new traders, and we’re always happy to explain concepts and strategy to new traders to ease their mind.

In any case, don’t fall victim to another forex trading misconception. Drop us a line and we’ll be happy to tell you the truth about forex trading and your potential for success.


Discover what Forex Trading can do for you
Fill the form below to receive your free Forex Trading Consultation today.