Forex trading online has become more and more popular in recent years due to the popularity of Internet stock trading. But along with this popularity come the inevitable hype, myths, and sometimes outright lies. While many of these myths are relatively harmless – that cast doubt on the currency industry. Here is the list of common myths Forex:
• Forex is easy. First is the truth. It’s easy to start forex trading, and it is easy to buy and sell currencies online. But succeeding and making money is not easy. It takes education, time and practice. Of course there are talented traders who learn very fast, but in general, traders start to devote part of their time to educate themselves, practice and develop strategies.
• Forex is the game. This is a myth and is often heard about all forms of trade like stocks, bonds, futures, options, etc. Forex is actually the epitome of macroeconomics in the purest form, even more than other types of trading market, as it deals exclusively with the performance, structure and behavior of national or regional economies as a whole, and their relationships with others. If this were true, then all managers in the national economy, advisers, consultants and students are the best players in the world. Rather we are all students of economics, technical analysis, fundamental analysis and psychology.
• Forex is a scam. Forex has some bad press after Program High Yield Investment (HYIP). More recently, a company in New York was closed and other trade website removed for cheating investors of millions. Fortunately prison sentences have been issued to discredit a legitimate industry permanently, regulated by law. In fact, Forex is a real currency market, where anyone can trade for themselves and be responsible for their own decisions, so it’s almost a scam.
• Only the rich can trade currencies. This was true. Now with the rapid development of high bandwidth Internet connection in common, along with the financial backing of the largest financial institutions in the world, Forex is open to all. You can start trading with only $ 1.
• Forex is completely random. While the short time fluctuations in the currency market may seem spontaneous and random, it is a myth. When you request a trade, there must be a change against his. There is nothing random about it. The long-term movements of currency pairs are far from random. There is a certain range of probability, but it is not random and can be predicted, controlled and influenced by the global economy, regionally and nationally.
• There is a Holy Grail in Forex. Some prefer to believe they can find some strategy to make millions and work forever. Unfortunately, this belief has no evidence. Successful traders are always changing their strategies and their adaptation to current market conditions. Usually, even a Forex strategy is something that can not be expressed as a simple set of rules that should be flexible and adapt to be truly profitable.
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