Forex being one of the largest markets in the world and the biggest money trader can unite many myths across the Internet. It’s is easy to read various false articles about the world of Forex. The first part of this article is about those who write those false articles.
1. MYTH: The stock market is equal to FX, so if you gain in one you also will gain in another.
One thing does not mean another, the stock market and forex market are different and satisfying ways of doing things completely different, but let’s see:
* The Forex Market is open 24 hours a day, unlike the stock exchange, so the investor needs to study the market in order to understand what the best time to buy or sell currency.
* The Forex market does not have much information about buying / selling currency like the Stock Market where everyone can easily get lots of information about certain companies.
2. MYTH: Making Money in the Forex market is easy.
Not true, to make money in Forex, and everywhere in general, requires study, dedication and hard work, the forex is no exception.
Some still say that you can make money with Forex by buying fast turnaround strategies, or even reading a few articles, but this is also not true. Who really wants to make money will have to invest heavily in themselves and in their technical knowledge and work hard. But nowadays the investor can rely on the help of softwares known as forex robots or forex EA’s that accelerate the process of realization of profits in the forex market.
3. MYTH: “I make money when you want, the Forex market is open 24 hours”
This is not true, the strategy of Trader (investor) must go through to define the best times to buy and sell currency, no trader will be able to spend 24 hours a day in front of the program’s Broker.
4. MYTH: You can succeed with only a few tips.
Actually it is not possible to succeed in the forex market if you do not read a lot, and not just follow what this or that investor said on their blogs. A great help and a big step to do well in this market is the demo accounts that the brokers offer to help the investor to succeed and gain more confidence in this market.
5. MYTH: Do not pay any commission to the Broker
The truth is that the trader pays the broker a commission through the Spread, the difference between purchase price and sale price, the truth is that when you make a purchase and a sales order in a short period of time, much of its profit belongs to the Broker.