Forex Trading Myths and their 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: Trading forex is simple. The truth first. 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. We are instead all students of psychology, economics, technical and fundamental analysis. Forex is a fraud. 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. 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. 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 the truth. Forex trading is now available to all thanks to the rapid development of Internet connections with high bandwidth, and the financial backing from the largest financial institutions around the world. Trading can be started with as little as $1. Forex is totally random. Although the short time fluctuations of the Forex market may seem spontaneous and random, this is a complete myth. There must be a counter-trade to the one you ordered. list forex broker malaysia There is nothing random about it. Long term movements of currency pairs are far from random. It is possible to predict, control and influence global, regional, and national economies.