You already know what Forex- a currency exchange market is. Why people get involved exactly in this market? It is quite a simple way to earn money: one does not have to go to an office and sit for 7-8 hours so as to earn. In Forex you only need to have a PC, Internet connection, and you are already ready to trade in the wide market of Forex.
Many people are aware about the real essence of Forex including in it the risks and benefits. Anyway, there may be people who still have doubts and do not know for sure what the market implies… So, let’s talk a little bit about the misconceptions of currency exchange market (Forex).
Misconception 1: It is a sort of game, in which players usually lose, not win. It is a very big mistake. You will ask why? Ok…Let’s not forget about the fact that when we deal with Forex market, we deal with live currency rates. The fluctuation of prices is happening live and it happens because of different economic factors which certainly are not related with any game. Actually, here the players should be wise enough to win, because simply opening an account and watching live currency rates may not help you to win in the market. You need to be smart enough to be able to predict, which is not that much easy, as you will have to learn some techniques and follow the World news, which will definitely help you to have clearer picture about the financial world and possible movements in the market of currencies and commodities.
Misconception 2: One’s gain is other’s loss. It is actually a myth. In this market, there is no a trader, who’s gain may be somehow related to another’s loss, or vice versa. Traders are independent and everyone should think about only his/her income.
Misconception 3: You can always win and become rich easily. This may be an opinion of a person who does not understand anything about Forex market. One cannot always predict prices right, as regardless the fact how long he may follow the news or use technical or fundamental analysis, he may be wrong, as there are some independent factors that have direct impact on price fluctuations. So, don’t worries about your mistakes and be ready for the difficulties. By this way you will learn no trade professionally.