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- If you know how to trade stocks, you can make money on the Forex market

It is one of the most common misconceptions that a lot of new Forex traders have. Traditionally they think that the success that they have had in one type of trading will translate to the success on the Forex market. In fact, it is not so. There are a lot of differences between the Forex market and other financial markets of the world.

The most significant fact is that the Forex market is open round the clock, except in weekends. This aspect allows more access to the Forex market, but at the same time it makes Forex trading more intricate process. Just think about valleys and peaks of the stock market which is traditionally open 6 hours a day. And now try to multiple this volatility times as it is the effect of having a market open all the day and all the night.

A lot of traders, especially new ones, fall into this trap because Forex is open round the clock, fast money could be made by trading during off peak hours. However they forget that if it is a dawn time in their time zone, it is the height of the trading in another one. You do not have to forget that when it is a noon in Tokyo, in London it is 3 am. Without taking into account when and where you are trading, you have to be savvy and sophisticated in your knowledge of the Forex market. One of the very first things to know about the Forex is that the indicators from the stock market do not obviously apply to the Forex market.

The other great difference between the Forex market and other financial markets is brokers. Forex brokers are not regulated. They are trained to place their own priorities above their clients’ ones.

- If the Forex market is open round the clock, then you have an opportunity to make money whenever you want

The main reason why Forex traders make money on the Forex market is not as it is open round the clock. In fact, it happens due to its volatility which is a result of the market being open all the day and all the night. During the course of a typical day, it is impossible to predict when the market will fall or rise and a trader cannot monitor the market every second of the day.

- Trades on the Forex market are commission free

While Forex traders do not pay the commission for their trades, they pay spreads. Spread is nothing more than a gap between the bid and ask. There is a spread on absolutely every trade, so you pay a fee for every your transaction.

As in any other niche of life Forex needs some knowledge.

Surely, you can start forex trading and be quite successful about it. But sooner or later the losses will come. This is when you might think “Why didn’t I start with a nice forex book?”

This does not imply that after reading even the greatest materials you will start closing trading positions with huge income, but this info will save you from many dangers. And even if you decide to get the help of a forex managed accounts service, still you will make a much wiser decision.

And some general tips – today the Internet technologies give you a truly unique chance to choose exactly what you need for the best price on the market. Strange, but most of the people don’t use this chance. In real life it means that you must use all the tools of today to get the info that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and join the discussion. All this will help you to create a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.

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