Here are some of the myths concerning the foreign currency trading market:False: The Random Movement of Currency Trading Markets
True: Stock price movement can be pushed up, down, sideways because of economics, specific company fundamentals, industry or market sector and pure emotion.
True: Currency trading markets are pure supply and demand. Currencies are weighed against each other depending on each country’s economic conditions in relation to another. There are no emotions involved. The British pound are not purchased because of the color of the money. USD/CHF is not based on the great ski resorts in that country.
True: Forex Trading Technically Pure
Price movement in the currency trading market reacts more strongly to resistance and support levels on a chart better than the stock market does. Supply and demand are the only two factors in the foreign currency trading market. Forex charts reflex the price levels. They react to Fibonacci tools, pivot points, trend lines, prior resistance and support levels.
Stock market traders have no emotional indicators to read. Currency trading markets react sharply to economic news and reports. Interest rate changes are directly correlated to FX. Pure supply and demand pressures equal more pure price movement relating to technical analysis in forex markets.
False: FX Is A Scam
Spot foreign currency trading markets are not in collusion with major banks and dealers. Their price movement is unstructured and vague. No central marketplace exists for global pricing of currency spot trades. Dealer data provided by individual brokers/dealers and major chart-service providers is as close as it comes.
This doesn’t mean there aren’t unscrupulous dealers. Forex is the least regulated financial market and in some cases totally unregulated. This in combination with the “get rich” human greed aspect leads to all kinds of scams and illegal schemes.
If you stick with the big broker/dealers for discretionary trading it becomes more simple. Avoid wild riches without risk, mechanical systems that are not capable of loss
It's a simple matter of sticking with the big broker/dealers for discretionary trading. Avoid offers of wild riches without risk, mechanical systems that never lose.
Foreign currency trading requires the same factors as any other requires the same factors as any other marketplace: patience, discipline, structured approach to create favorable risk/reward parameters, tolerance for loss as part of an overall profitable approach.Time, study and experience cannot be substituted.
True: FX Broker/Dealers Do Not Purposely Trade Against Their Clients
FX/dealer trading desks exist to trade against the collective sum of all their clients, their book. A dealer desk does not look at individuals but the total sum. Major brokers/dealers cannot move entire currency pair markets away from the fair market value enough to consistently and repeatedly target individual traders and their stops. Individual success will stand on its own, unaffected by a legitimate broker/dealer. 
