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. Forex trading online has become more and more popular in recent years, due in large part to the popularity of stock trading on the internet. Along with the popularity of online trading comes the hype, myths and sometimes, outright lies. Here is the list of the most common Forex myths: 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. There are some traders who learn quickly, but most traders need to spend time learning, developing strategies, and practicing. Forex is gambling. This is a common myth that is heard about any form of trading, whether it is stocks, bonds or futures. 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. Rather we are all students of economics, technical analysis, fundamental analysis and psychology. Forex is a scam. Forex received some bad press when High Yielding Investment Programs began to claim they made money https://www.fxcm-markets.com/ with Forex. More recently a firm in New York was shut down and another's internet trading site dismantled for bilking investors out of millions. Fortunately prison terms have been issued for bringing discredit to a legitimate, regulated and law abiding 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. The only scams you should be afraid of as a Forex trader are scamming brokers and marketers that sell Forex books, sure-fire strategies, trading systems, guaranteed returns or the usual "to good to be true" devices. Only the rich can 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. You can start trading with just $1. Forex is completely random. Although the short time fluctuations of the Forex market may seem spontaneous and random, this is a complete myth. When you order a trade, there has to be a counter trade to yours. It is not random. The long-term movements of currency pairs is not random. It is possible to predict, control and influence global, regional, and national economies.