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. But along with this popularity comes the inevitable hype, myths, and at times, complete untruths. The most common Forex myths are listed below:
Trading forex is simple. The truth first. Forex trading is simple and easy. It's easy to buy and to sell currencies online. Making money and succeeding is not easy. Education, time and practice are required. 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 v stock tradingview about any form of trading, whether it is stocks, bonds or futures. Forex is macroeconomics in its purest form. It's even more pure than other forms of trading, as it only deals with the behavior, structure and performance of national and regional economies, as well as their interrelationships. 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. Recently, a New York firm was closed down for defrauding investors of millions and an internet trading website of another was dismantled. It's a good thing that prison sentences have been handed out for discrediting a law-abiding, legitimate and regulated industry. Forex is not a scam. It's an actual currency market, where traders can make their own decisions and trade on their own. The only scams you should be afraid of as a Forex trader are scamming brokers and marketers that sell Forex books, sure-fire strategies, trading systems, guaranteed returns or the usual "to 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. You can start trading with just $1.