Forex Trading Myths
The popularity of internet stock trading is a major reason why forex trading has increased in the last few years. With this increased popularity, comes the hype, mysticism, and sometimes, outright lies. Many of these are harmless myths, however they cast doubt on Forex and can be expensive for beginning traders. This is a short list of common Forex misconceptions. Learn more?
Forex trading can be easy. Let’s start with the truth. Forex trading can be done online with ease. It is difficult to make money or succeed in Forex trading. This requires education, patience and practice. Although there are traders with exceptional talent who can learn fast, it is generally recommended that new traders spend some time educating themselves and developing their strategies.
Forex trading is a form of gambling. The myth is heard often about any type of trading: stocks, bonds or futures. Forex in its pure form is macroeconomics. This makes it even more important than other forms of market trading, as Forex deals exclusively with the structure and behavior of economies, both national and regional, as well as their relationships. This would mean that all national economic administrators and advisors as well as students, are among the most successful gamblers. Instead, we’re all studying economics, psychology, technical analysis and fundamental analysis.
Forex is a fraud. Forex has been criticized after High Yielding Investment Programs started claiming that they make money with Forex. In recent times, an investment firm in New York and another internet trading site were shut down after bilking millions of investors. Unfortunately, prison sentences were handed down for damaging a legitimate industry that is regulated and follows the law. Forex is actually a legitimate currency market that allows anyone to trade and make decisions for themselves. So it’s not really a fraud. Forex scams are only a concern for scamming Forex brokers or marketers who try to sell you Forex books, strategies that work, trading systems and guaranteed returns.