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. The most common Forex myths are listed below: Forex trading is easy. The truth first. Forex trading is simple and easy. It's also easy to buy and trade currencies online. Making money and succeeding is not easy. It takes education, time and practice. 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. 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 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 wikipedia reference 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 wealthy 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. 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. 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.