Forex Trading Myths (and honest answers)

1. While many of these myths are relatively harmless - they do cast doubts on the Forex industry, and some can actually be costly to beginning currency traders as well. In recent years, forex trading has grown in popularity due to the increasing popularity of online stock trading. But along with this popularity comes the inevitable hype, myths, and at times, complete untruths. The most common Forex myths are listed below: Forex trading is easy. The truth first. It is easy to start Forex trading and it is easy to buy and sell currencies online. But succeeding and making money is anything but easy. Education, time and practice are required. Of course, there are talented traders that learn very fast, but generally speaking, starting traders should dedicate part of their time to educating themselves, practicing and developing strategies. Forex is gambling. This is a myth and is often heard about all forms of trading; whether it's stocks, bonds, futures, options etc. In reality Forex is the epitome of macro economics in the purest form, even more so than other types of market trading as it deals solely with the performance, structure, and behavior of national or regional economies as a whole, and their interrelationships with each other. If this were true, then all the national economic administrators, advisors, consultants and students are the world's best gamblers. We are instead all students of psychology, economics, technical and fundamental analysis. Forex is a fraud. Forex got some bad press after High Yielding Investment Programs (HYIP's) started to claim that they earn money on Forex. Recently, a New York firm was closed down for defrauding investors of millions and an internet trading website was dismantled. It's a good thing that prison sentences have been handed out for discrediting a law-abiding, legitimate and regulated industry. Actually Forex is a real currency market where anyone can trade for themselves and be responsible for their own decisions, so it's hardly a scam. Forex traders should only be concerned about scamming marketers and brokers who sell Forex books, trading systems, guaranteed profits, or other "too good to be true' devices. Only the rich can list forex broker malaysia trade Forex. This was true. Now with the fast development of high bandwidth in the common Internet connection, coupled with the financial backing of the largest financial institutions in the world, Forex is now open to everyone. Trading can be started with as little as $1. Forex is completely random. The short-term fluctuations in the Forex market can appear random and spontaneous, but this is a myth. There must be a counter-trade to the one you ordered. It is not random. The long-term movements of currency pairs is not random. There is a certain range of probability, but it is not random and can be predicted, controlled and influenced by global, regional and national economics.