Myths In Forex
10 Myths About Forex Trading
Forex trading is easy
The first is a truth. It is easy to start Forex trading and easy to buy and sell online currency. But succeeding and making money is something that is not easy. It takes education, time and practice. Of course, there are talented traders who learn very quickly, but in general, begin traders have to dedicate some of their time to educate themselves, practicing and developing strategies.
Forex is a gamble
This is a myth and often hears about all forms of trading; whether it is stocks, bonds, futures, options etc. In fact, Forex is the epitome of macroeconomics in its purest form, even more than any other type of market trading because it deals solely with the performance, structure, and behavior of national or regional economies as a whole, and their relationship to each other. If this is true, then all the best national economic administrators, advisers, consultants and student gamblers in the world. Instead, we are all students of economics, technical analysis, fundamental analysis, and psychology.
Forex is a scam
Forex got some bad images after high-income Investment (HYIP) programs started claiming that they earn money on Forex. Recently a company in New York was closed and another was dismantled trading site in case of investor fraud. Actually, Forex is a real currency market where everyone can trade for themselves and be responsible for their own decisions, so it is hardly a scam.
Only rich people can trade Forex
This is less relevant today. Now with the rapid development of high bandwidth in a common internet connection, coupled with financial support from the world’s largest financial institution, Forex is now open to everyone. You can start trading for only $ 1.
Forex is completely random
Although the short-run fluctuations of the Forex market may seem spontaneous and random, this is a myth. When you place a trading order, there should be a trading counter for you. There is nothing random about it. Long-term movement of the pair is far from a random pattern. There are certain probabilities, but not random and predictable, controlled and influenced by global, regional and national economies.
There is a “Holy Grail” in Forex
Some choose to believe that they can find some strategies that will earn millions and work forever. Successful traders always change their strategy and adapt it to current market conditions. Usually, even a Forex strategy is something that can not be declared as a set of rules, it should be used with flexibility and adjusting to being really profitable. Yes, a Filipina housewife opens a $ 25 Forex trading account and builds it up to US $ 2.6 million in three years. He is a phenomenal trader. He studied, practiced, studied and constantly tailored and executed his trading strategy perfectly.
Brokers trading against their clients
In a nutshell, this is wrong. Remember, Forex brokers earn their profits from differences in pairs (spreads) and commissions ·
Forex trading is risky. THIS IS NOT MYTH – THIS IS THE TRUTH. Just as in any form of trading or investment, there is no guarantee and you can lose all the money you invest. While practicing healthy risk management techniques prevent this, it can happen. If you open an account with $ 500, make sure it’s not $ 500 from your budget to feed the child.