Stocks & Commodities V. 36:08 (30–31, 35): Seven Forex Myths Dispelled by Solomon Chuama

Seven Forex Myths Dispelled by Solomon Chuama

New traders often get attracted to the forex markets because of the potential to make great returns using a small amount of capital. But there is more that new traders should know about it. Here, we look at some of the common misconceptions about forex trading.

The foreign currency exchange market, known as forex, has been around since 1976 and has been electronically traded since 1990. I’ll start with a brief history. The gold standard exchange was implemented in 1876. The purpose was to back all paper currency with gold to stabilize world currencies by pegging them to gold’s price. The major shortcoming was that European countries didn’t have enough gold to support all the currencies they were printing to pay for large military projects ...