PEACHTREE CITY, GA--(Marketwire - February 18, 2009) - A lot of people are going into forex
trading because they know it's a place where you can make a profit even
when the economy is faltering:
But misconceptions about forex frighten away some traders who could
succeed -- and attract others who shouldn't be trading forex.
"The good news about forex trading is that good opportunities are available
in today's faltering and ailing economy. The bad news is that
misconceptions about forex abound," says
Wayne McDonell, Chief
Currency Coach of FX Bootcamp (
www.FxBootcamp.com), a live forex
training organization, and author of
"The FX Bootcamp Guide to Strategic
and Tactical Forex Trading" (Wiley Trading, September 2008).
"Forex is easy to get into but hard to master. It requires and rewards
patience and discipline. It isn't right for everyone. Nonetheless,
newcomers and aspiring traders shouldn't be afraid to trade, yet they need
to understand how forex works," Mr. McDonell says. "Once you know the facts
you can determine if forex is right for you."
Forex Realities
Mr. McDonell is available to elaborate on the myths and realities of forex
trading. For instance...
- Myth: When you trade forex, profit falls into your lap. Fact:
You have to earn your profits. It takes hard work to understand and track
economic developments, and to plan and execute a trading strategy to take
advantage of them.
- Myth: There's no liquidity in forex. Fact: Forex is the
world's fastest-growing asset class. Its daily volume exceeds $1 Trillion.
Its high liquidity is a key factor in the stability of the global forex
market.
- Myth: Forex isn't regulated. Fact: the old forex wasn't
tightly regulated but the new forex market is. The National Futures
Association regulates forex activities. Regulators require brokers to
maintain much more cash, oversee their financial accounts and make it
extremely difficult for them to manipulate the markets. "On the old forex,
some fly-by-night brokers were suckering their clients, but now tight
regulations reduce the likelihood of these abuses," Mr. McDonell says.
"Opening a forex trading account in the United States is extremely safe."
- Myth: To trade forex, you must pay attention to every economic
indicator. Fact: The key factor in all successful forex strategies is
inflation. "Inflation affects interest rates, and interest rates affect
currency positions," says Mr. McDonell. "If you track inflation
indicators, you can plan your strategy. These are long term fundamentals
that occur over a period of months and years."
- Myth: To trade forex, you have to be "on" 24 hours a day.
Fact: Forex traders can trade successfully in as little as two hours a day.
Keeping to a consistent strategy means that traders can establish, then
liquidate their positions efficiently. "Forex is particularly beneficial
to those who would like to trade, but have a day job. Unlike the stock
market, you can trade currencies before and after work."
"To be a successful forex trader, having a strategy and a plan -- and
sticking to it -- is essential," Mr. McDonell says. "You have to have a
strategy in place and anticipate developments so that when they happen, you
can act immediately."
Wayne McDonell is available for interviews. For more information, or to
schedule an interview, contact Itay Engelman of Sommerfield Communications
at (212) 255-8386 or
itay@sommerfield.com.
About Wayne McDonell
Wayne McDonell is the Chief Currency Coach of
FX Bootcamp, a live forex training
organization, which has an audience comprised of members from over 50
countries. He is also the author of
"The FX Bootcamp Guide to Strategic
and Tactical Forex Trading" (Wiley Trading, September 2008), a top
seller in the Foreign Exchange category. Mr. McDonell is a regular speaker
at major investing conferences, including the upcoming Traders Expo in New
York. He provides his weekly trading outlook on FOREX Television and his
training videos are syndicated around the world on outlets including
FXstreet.com, MoneyShow, DailyFX, Yahoo Finance, MSN and others. As a
professional forex trader, Mr. McDonell is a member of the National Futures
Association and a registered Commodities Trading Advisor.
Contact Information: Contact:
Itay Engelman
Sommerfield Communications
(212) 255-8386
itay@sommerfield.com