Apparently, Forex Trading is a victim of myths, or Mythconceptions. Here are just some of the myths and Mythconceptions which had come about from people who make mistaken assumptions on something which they really don’t know anything about. Because of this, Forex Trading has been stigmatized and labelled, incorrectly mind you.
Unfortunately, as all myths go, the uninformed tend to hear about them and believe everything without consulting or researching for the truth. The facts are usually written about, but most of them are distorted. Here are just some of the myths which the general public may hear about Forex Trading:
Forex Trading is Not Trading, It is Gambling
Forex Trading is not a gamble; it is closely related to trading in the Stock Exchange. The odds are the same but the Forex only deals with lower margins and profits are lower than those on Stocks.
Dealing with Forex Is A Lost Investment
In the first place, this is not an investment, it is a speculation which is based on high risks and when you win, you can also get a reward. This may be considered a ‘high risk’ trading system, but this should not mean that you should never speculate on anything at all.
Forex Deals with Market Manipulation
This is wrong; in fact, more market manipulation is seen and practice on the Stocks for stocks are very public information while the Forex is not. In fact, the Forex is guarded by the governments of the different countries and the facts are only revealed once they are released. There is no possibility of one particular group to manipulate this market, unlike those of the Stock Exchange.
Forex Trading is Not Trading, It is Speculation
The Forex is not based on stupid guesses; instead it is based on educated ones which are also based on facts and figures, not the dreams of traders. Traders are taught and trained to use their common sense and make educated speculation based on the information which they receive. There is no guess work involved, it is all studied. The stupid guesses will mean a loss in profits.
Forex is Not a Long Term Investment, It is Short Term
This is again, incorrect. This again, is not an investment, it is trading. The investments are usually either long term, intermediate or short term, depending on the trader. The Forex Traders sometimes go on short term, but when they wait for the price which they like, they can wait for a long, long time.