Forex Trading Myths and their honest answers

1. Some of these myths can be very costly for new currency traders. 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. First the truth. It is easy to start Forex important link trading and it is easy to buy and sell currencies online. Making money and succeeding is not 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 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. 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 wealthy can trade Forex. This was true. 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. The long- term movements of currency pairs is not random. It is possible to predict, control and influence global, regional, and national economies.