With all the promotions around claiming anyone can make huge

profits on the Forex markets, it's no wonder so many people

start out trading with little but misconceptions to go on.

Certain incorrect ideas are so pervasive that they hold the

majority of new traders back from making the profits they

could and cause others so much frustration they give up on

Forex trading altogether.

Thus, before you venture into forex trading, here are a few

things that you should know about.

The Forex market is not equivalent to the stock market

A lot of newer traders and even some experienced ones

decide to get involved in Forex trading because they assume

it's more or less like the stock market, but potentially

more profitable. Unfortunately, going into the Forex market

planning to use your knowledge of stock trading is like

planning to become a shoemaker because you know how to knit

socks. They're similar, but definitely not the same and they

require different knowledge and skills sets.

Regardless of the timezone, trading is available anytime

Although the forex market is essentially 24 hours, this

does not mean that you are able to trade 24 hours. For you

to make any profit on your trading, you need to see price

fluctuations. And for fluctuations to occur, you will need

trading activities. But when everyone is asleep, there are

no trading activities. So bear in mind that the currency

pairs fluctuations depends on the type of currency and on

which market the currency is being traded in.

Trading is free as there are no commission

While it is true that there is no commission to be paid

when you trade on the Forex market, you will still need to

pay the "spread'. The spread is the difference between the

Ask price and Bid price. This is how the forex dealers makes

money in lieu of commissions. when you look at the whole

picture objectively, what you are doing is essentially

swapping the commission based system for the spread system.

So the more you trade the more you also pay as well.

Predicting the forex market is the key to profitability in

the forex market.

If you think about it, this one's pretty ridiculous. No one

can predict the future no matter how long they analyze the

charts. Attempts to predict what will happen with a

particular currency pair are really nothing more than

educated guesses-some better educated than others. Trying to

always be one step ahead of the market will not only exhaust

you, it won't make you much money, either. What you need to

do instead is "go with the flow" and learn to react

appropriately to chances in the market. This skill only

comes with experience.

Complex strategies are the way to go

The human mind is sometimes very hard to understand. People

always assume that the more complex a trading strategy is

the better it is. The reasoning behind this is that it must

had become complex because its covers every contingencies.

This is not necessarily true as sometimes complex strategies

represent just a diversion from a simple solution which can

accomplished the same thing.

Don't be misled by flashy advertisements selling you

nothing but fairytales. Learn the truth about Forex trading

so you'll be prepared to start making good profit right from

the start.