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,Guest Posting due in large part to the popularity of stock trading on the internet. Along with blog here 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. First the truth. 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. 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 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 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 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. Fortunately prison terms have been issued for bringing discredit to a legitimate, regulated and law abiding industry. Forex is not a scam. It's an actual currency market, where traders can make their own decisions and trade on their own. 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 rich 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.