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. But along with this popularity comes the inevitable hype, myths, and at times, complete untruths. Here is the list of the most common Forex myths: Forex trading is easy. First the truth. Forex trading is simple and easy. It's also easy to buy and trade 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. 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 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. Forex is not a scam because it is a real market that anyone can participate in. They are responsible for making their own trading decisions. 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 trade Forex. This was the truth. 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 totally random. The short-term visit us 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. There is nothing random about it. 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.