Some of these myths can be very costly for new currency traders.
Forex trading online has become more and more popular in recent years,Guest Posting 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 easy to buy and to sell 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 common myth that is heard about any form of trading, whether it is stocks, bonds or futures. 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. We are instead all students of psychology, economics, technical and fundamental analysis.
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 v trading pattern 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. Forex traders should only be concerned about scams perpetrated by brokers and marketers who sell Forex books, trading systems, sure-fire strategies 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. Trading can be started with as little as $1.