Forex myths

[FibMaster]

Liquidity.
Forex market is so large and also extremely liquid. This means that if you click a mouse, you can instataneously but and sell at will. (sic)

ROFL no way. Ever heard of a re-quote? Ever tried to limit enter during a news spike?

[FibMaster]

Forex market never sleeps. This is very desirable for those who want to trade on a part time basis, because you can choose when you want to trade: morning, noon, or night.

Sure, if you don't care about liquidity, volatility, whipsaw. Buckle up, this can be a rough ride..

[FibMaster]

Leverage.
A small margin deposit can control a much larger total contract value in forex trading . Leverage gives trader the ability to make extraordinary profit and keep risk capital to a minimum at the same time. Some forex firms offer 200 to 1 leverage, which means that a $50 margin deposit would enable a trader to buy or sell $10,000 worth of currencies.

Bwaahahaha! Good-bye $50. Remember to use a really close stop too (snicker).

[FibMaster]

Profit in Two Ways

On the stock market, you can only make money if shares are rising and the economy growth. Forex is little bit different. Forex has the ability to generate profits whether a currency pair is up or down. A trader can profit by taking a "long" position or a "short" position. For example, if you think the USD will increase in value against EUR, then you will buy Dollar and sell Euro (long). But if you think the EUR will increase in value against Dollar, then you will sell Dollars and buy Euro (short). As long as you pick the right direction, a potential for profit always exists.

Search craigslist for bridges 4 sale?

You can short equities too. Though ignorant people believe it is blasphemous or unpatriotic.

As long as you pick the right direction, a potential for profit always exists.

Hehehe.. Wishing you good luck with that! Flights to Las Vegas are cheap, and the hotels offer great discounts these days.

[FibMaster]

Low Commission Fees
One might think that getting started as a currency trader requires a lot of money. The fat is, it doesn't. Online brokers/dealers now offer mini trading accounts with a minimum account deposit of only $200-$500. They also offer very low commision rates. This makes forex much more accessible to the average individual, without large start-up capital.

Hoo-boy!

The fat is? A spell-checker won't help with that error, but some simple arithmetic will tell you that FOREX spreads will eat up your $50 account very quickly.

Don't confuse that fact that you can start with a little money, with the concept of low fees.

[FibMaster]

What's that noise?

Oh, it's your wake-up call!

ROTFLMAO

.

[toyogo00]

Hi FibMaster,

All sound very familiar that one can read it everyday from newspaper to forex promotional websites!

better still - average 2000 pips per month or 10 losses out of 3000 trades with result tabulated nicely!!!

It looks very easy and simple - best deals so far besides those executives who receive bonuses from banks out of bailout money from tax-payers! lol


Regards,
Toyogo

[Graham_S]

What's the problem? - price can only go up or down. Can't be that difficult:-)

[Justin]

FibMaster,

You are hilarious!