The independent conduct of operations in the foreign exchange market provides an order of magnitude more opportunities. And the higher the skill of a trader who prefers manual trading on Forex, the more money he can manage, accordingly, the more he can earn.
However, many myths are associated with manual trade. In this article, we will consider the main misconceptions that are most often associated with traders with independent work in the market.
Manual trading in Forex means a multi-hour sitting at the monitor. In reality, a trader can successfully trade in small volumes, rarely and only in those moments when he is confident in the situation and understands the market.
You have to trade on your own money. Here it should be noted that the deposit may be own, and may include investor funds. A trader who decided to do manual trading should first earn skills on a demo account, create a positive dynamic on historical accounts and only after that engage in the search for investor capital. Of course, manual trading on Forex carries a greater risk than automatic trading or investing in PAMM-accounts, and also takes more time. However, this is only at first glance, the look of an inexperienced player.
You need to be able to clearly understand all the concepts, subtleties, technologies of the market, methods and strategies of analysis, to possess a perfect theory of probability or to be a professor of mathematics. No, with manual trading in the Forex market it is enough to understand the basic laws and principles, but the main thing is to use them perfectly in trading. Especially it concerns the management of capital and risks. Only a business approach to work in the foreign exchange market guarantees the receipt of income from currency speculation. In many cases, forecasting the direction of price movement is not an easy task, there are simple price models that work with efficiency up to 90%. It remains only to find these models and learn how to use them.