Forex trading forex myths and truths has become more and more popular in recent years, 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. It is easy to start Forex trading and it is easy to buy and 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. 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. 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.
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. Only the rich can trade Forex. 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. Although the short time fluctuations of the Forex market may seem spontaneous and random, this is a complete myth. When you order a trade, there has to be a counter trade to yours. There is nothing random about it. Long term movements of currency pairs are far from random.
There is a certain range of probability, but it is not random and can be predicted, controlled and influenced by global, regional and national economics. There is a “Holy Grail” in Forex. Some prefer to believe that they can find some strategy that will earn millions and work forever. Unfortunately that belief has no proof. Successful traders are always changing their strategies and adapting them to the current market conditions. Usually even a Forex strategy is something that can’t be expressed as a simple set of rules, it must used with flexibility and adjusting to be really profitable.