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. In recent years, forex trading has grown in popularity due to the increasing popularity of online stock trading. 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. 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. It takes education, time and practice. 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 myth and is often heard about all forms of trading; whether it's stocks, bonds, futures, options etc. Forex is macroeconomics in its purest form. It's even more pure than other forms of trading, as it deals with the performance, structure and behavior of regional or national economies and their interrelationships. If this was true, all national economists, advisors and consultants, as well as students, would be the best gamblers in the world. Rather we are all students of economics, technical analysis, fundamental analysis and psychology. Forex is a scam. Forex got some bad press after High Yielding Investment Programs (HYIP's) started to claim that they earn money on 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. 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. 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. You can start trading with just $1. Forex is totally 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. There is nothing random about it. Long term movements of currency pairs are far from random. There is a certain range of probability, but visit us it is not random and can be predicted, controlled and influenced by global, regional and national economics.