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Entering the Forex market can be a daunting thing since it is already filled with a multitude of trades that have failed and some that have gotten remarkably wealthy. Obviously, you would like to be placed amongst the second group but the best way to booking your place amongst them is to learn the truth behind the trading myths.
Some of the myths would have it that Forex trading is like being on an online casino, or is some sort of get rich quick scheme, but these are not true at all. With regards its comparison with a casino, Forex trading is heavily dependent on market developments, performances and the relationship of difference economies to each other. It is important that you have knowledge of these. It has nothing to do with luck, on which gambling is chiefly based.
As regards being a get rich quick scheme, the majority of traders fail to get rich at all, and the need to have a thorough understanding of the marketplace means that only educated calculations can reap rewards. To educate yourself takes time and experience, so there is nothing quick about it.
It is also thought that only the already rich can make inroads on the Forex market. This is also untrue since the lowest investment that you can make is just USD1. That is not a lot of money, is it? All you need is a broadband connection and a little cash to get started. Knowledge and careful analysis can help you make a lot of money.
Once you do get into Forex trading, it is also worth noting that intraday trading is not actually the safest way to start. Intraday basically means day trading, where a trader concludes all trades before the close of business. It’s much easier to track the movements of currency pairs over the long term and it’s safer to opt for than the highly volatile day trading.