Forex Myths

You may have heard a popular opinion suggesting that Forex is some kind of scam.

Lets put the record straight

Myth no. 1: you can’t Make money trading Forex

Obviously, a myth. Hundreds of traders working with Stockhome make money every day.

Essentially, they are doing the same thing that banks, exchangers and large corporations do: they buy and sell assets. The main goal is to buy cheap and sell high. Put simply, this is the gist of financial market trading. Prices change every day, more for some assets, less for the others.

The market is moving fast, millions of trades are placed every minute. And every minute someone makes profit.

Myth no. 2: only a few Traders actually learn and know how to trade

If you’re new to the market, it’s true that you’ll need some time to understand how to use the trading terminal, learn the terminology and how to place trades. Like anything new there is a learning curve, as you were not born with the knowledge, no one is.

Everything that follows will turn into an exciting process: you place orders to buy or sell currency, someone buys it from you at your price, then you look for favorable offers and buy with an intention to sell higher. Stockhome provides access to the market of high liquidity, which means all your buy and sell orders will always be met with a matching offer.

Myth no. 3: Forex is a scam

Another myth but one that is repeated over and over again. Forex (stands for foreign exchange) is a free international currency exchange market that has been around in its modern form since 1978, under an international agreement. At first, only big market players could place trades (market makers): banks, foundations, transnational corporations, countries.

Starting from 1990s, the market became available to private investors thanks to the introduction of micro-lots and split lots (significantly reducing the minimum sum of a transaction).

Today, Forex is just a currency market everyone can trade in, but they need an intermediary to provide the software and the whole infrastructure for the creation of accounts, placing orders, depositing and withdrawing funds. Brokers are simply such intermediaries.

Myth no. 4: client’s loss is broker’s gain

Brokers have an interest in the success of their clients. Real brokers are focused on long-term operation. It is cheaper and better to retain a client then have to get a new one .

They make their profit from trading volume and commissions from each trade, both profitable and losing ones. That’s why they have no interest in the client’s loss. In fact, the opposite is true: they are interested in clients who place as many trades as possible as often as possible and continue to work with the company, leading to growing volumes.

They do everything to help clients on their way to success.

Myth no. 5: You can be a millionaire in No time Trading

When someone says this, they clearly have not been trading. trading for profit is something you need to learn, understanding the market takes time. Now there are very successful traders actually there are many of them. But they all had to go through the process of learning, it is not gambling as they put it, if you learn how to trade with the strategies and take the trading tips to heart, you might become a very profitable trader, but don’t expect this to be the case from the get go.

Hope this shed some light on the most common myths. Now Start Trading and implement our trading tips.