Forex trading is one of the most exciting new toys in the financial field (and not just there). The stakes are variable enough that almost anyone can play, and the potential winnings are high enough to tempt even the most conservative into the swamp. There’s something “sexy” about trading money – an appeal that stock, bonds and mutual funds just don’t have. With trillions of dollars changing hands daily in the forex market, it seems like everyone’s got a fool-proof system to win the money and get rich (and fast). Here are some of the things I heard, that are sure to get you broke in no-time:

There is a failsafe method to make money on every trade - Just like there’s no such thing as a free meal, there’s no such thing as a failsafe method. You WILL lose money on some trades, it’s part of the trading game. Expecting to always win is a guaranteed way to make you hang on to trades long past the point that an experienced trader would have found an out.

You don’t need to know anything about the market to make money in it - Not knowing your playing field is a sure way to hit every bump and hole in it. It’s not enough to read a few articles from your dealer. You need to make a concentrated effort to understand the forces that drive the market so you’ll know the best times to make a move.

You can play a winning game by making frequent forex trades with small profits - If your goal is to make a few hundred dollars a day, you may be ahead of the game, but you’re seriously limiting your profit potential. The only people getting rich on frequent tiny trades are the dealers taking commission on them.