The main myths about Forex trading

Forex traders looking to profit by buying or selling currencies, stocks or commodities. There is a lot of information on the web on forex, but at the same time in the network We can find many more CSOs terrible myths surrounding the foreign exchange market currency:

1. Forex trading is easy. Many people who want to immerse themselves in the world of international currency markets believe that Forex trading is lesna- You just read a book or two and think that you are able to start earning with just 2-3 hours. Others buy a profitable strategy and believe that it will work and they will start making the Forex market. In fact it is just a myth. Success in this business is not as easy as mastering any other profession you have time, money and a lot of practice.

2. "I can make money in the Forex, if I trade stocks successfully." Success in stock market does not mean that you will have success in Forex market - there are many differences between trading stocks and the spot currencies. First and most important it is that the Forex market requires a lot of hard work and dedication as it is open 24 hours a day. You can not just sit in front of a computer all day and all night, so the best option is to find the best time to trade. Second, the strategy you used to "buy and hold" simply does not work in Forex. Third, you do not have much information about currencies as you can get reports and statistics companies.

3. "I can win whenever you want, because currency trading 24 hours a day." Once again, you can not sit in front of your PC and can trade continuously. We have to develop automated trading software to get the advantage 24-hour race.

4. "I can be a successful trader if you follow someone else's signals." Many beginning traders get burned by blindly following signals. This is like putting someone with responsibility for your actions. That sounds cool, but in reality you will accumulate huge losses. Learn to rely on their own knowledge and skills. Remember well - there is no great thing in this difficult craft.

5.Foreks scam. Some skeptics and disappointed traders think that Forex is just a new model to get away from people their hard earned money. Although there are many scams that are hiding behind the brand "Forex", this does not mean that only Forex itself is a scam. There are many institutional Forex brokers, regulated account managers, and also there are many large companies that are "Market Makers" and who can be trusted.

6 "We need to predict exactly what will happen in the market, to be a profitable trader." There is no scientific method to know that you have a 100% advantage over other players in the trade. Otherwise there would be no Forex market if know in advance exactly how much will be the price of a currency. Trading is not the game safe; it is a game of chance. The first things that new traders learn is to think what might happen over time and to assess the relationship risk - return.

7. "I have to use many different strategies, so I can win." This is a very popular myth that many online sellers would want you to believe. The main requirement to be a successful Forex trader is self-discipline and prudent management of the funds in your account. Traders who have succeeded in this market simple and old strategies themselves.

8. "I need a large initial capital." The large capital investment will help the Forex market. You do not need much money to change exchange rates, you simply can not influence their movement with your orders (required you billions to do this). In fact, you can trade with very little capital as used margin trading, ie you only pay a fraction of the position in which you go and rest the broker's money.

9. Forex market is Hazard because currency movements are erratic. Although there is no certainty in Forex (as in all financial markets), which does not mean that it is chaotic. Most secure, however, is that it is not gambling, since your success here depends mostly on your skills and experience, not on your luck.

Knowledge is power - so it's best to learn distinguishing some stereotypical myths from the real thing. Do not be fooled by someone promises easy profits in Forex, but do not be afraid of the market just because some people think that it is possible to earn it. Be rational - this quality will help you figure out whether to trade in Forex or not.