Top 10 Myths about Forex

July 7th, 2009

Forex is a market where exchange of one currency with another currency takes place. It’s the market which provides accessibility and liquidity to the traders to buy and sell one foreign currency in exchange of another.

Forex traders seek profit in buying currencies low and selling them high. This kind of trading became more popular with the widespread of the on-line Forex brokers. There is a lot of information available about Forex on the web. However there also many myths surrounding the foreign exchange market:

  1. Forex trading is easy. Many people that want to dive into the world of the foreign exchange market believe that the Forex trading is easy — you just read a book or two and then you will be able to earn daily profits with just 2-3 hours trading daily. Others think that they can buy a profitable strategy and it will make them rich in Forex. In reality that’s just a myth. Succeeding in Forex isn’t easier than mastering any other profession — it takes time, money and a lot of practice.
  2. “I will make money in Forex, if I can trade stocks successfully.” Success in stock market doesn’t imply that you will get success in Forex market — there are many differences between trading stocks and the spot currencies. First of all, Forex market requires a lot of hard work and dedication as this market is open for 24 hours a day. You cannot just sit in front of your computer for the whole day and night, so the best way is that you should find the most suitable time periods for trading. Second, “buy&hold„ strategy simply won’t work in Forex market. Third, you don’t have that much information about currencies as you can get from the companies’ reports and statistics.
  3. “I can make profit whenever I want if Forex market is open 24 hours a day.” Once again, you won’t be sitting in front of your PC for the whole day to be able to trade 24 hours. You’ll have to develop automated trading software to get the advantage of 24 hours a day working schedule.
  4. “I can be a successful Forex trader just following someone else’s signals.” Many beginning traders get burned by the blind signal-following. That’s like putting away the whole responsibility for your actions to someone else. That may sound cool, but in reality you end up with the huge losses. Learn to rely on your own knowledge and skills. Remember that there were no great signal-followers in any financial market.
  5. No commission is to be paid in Forex market. You only have to pay the spread, but you don’t have to pay the commission. And what’s spread? It is the difference between the buy and sell price of the currency pair at the same moment. You may end up with the major part of your profits in the broker’s hands if you plan to rely on the short-term trading.
  6. Forex is a scam. Some skeptics and disappointed traders think that Forex is just some new fad to scam people for their hard earned money. Although there are many scams that are hiding behind the “brand” of Forex, that doesn’t mean that the Forex itself is a scam. There are many institutional Forex brokers, regulated Forex account managers and other solid companies in the market to whom you can trust.
  7. “I need to exactly predict the market outcome to be profitable in Forex.” There is no scientific method to know something in advance in the market with a 100% certainty. There would be no Forex market if you could know the exact currency rates beforehand. Trading is not the game of certainties; it’s a game of odds. One of the first things that new traders learn is to think in the terms of probabilities and risk-to-reward ratios.
  8. “I need to use a very complex strategy to be successful in Forex.” It’s a popular myth, in which many on-line sellers would want you to believe. The main requirement to be successful in Forex is a self-discipline and money management. There are many traders that make consistent profits with rather simple and old strategies.
  9. “I need to have a lot of starting capital to get profit in Forex.” Big capital investment won’t help you in Forex. You don’t need a lot of money to diversify in currencies and you can’t move the currency rates with your trading orders (you’d need billions of dollars to do that). Actually you can trade with a very a little capital, because Forex trading is almost always leveraged with the broker’s money.
  10. Forex is gambling because it’s completely random. Although there is no certainty in Forex (as in any financial market) it doesn’t mean that it’s completely random. And it’s certainly not a gambling, since your success in this market depends mostly on your skills and experience, not on your luck.

Knowledge is power — so it’s better for you to learn distinguishing some stereotypical myths from the real thing. Don’t fall for the promises of getting some easy profits in Forex, but don’t be afraid of the market just because some people think it’s not possible to earn there. Be rational — this quality will help you either if you are going to trade in Forex or not. (Source: Internet)

SEO: The Myths

May 13th, 2009

Now we’ll debunk 5 of the most common myths of search engine optimization –myths that can lead to ineffectual marketing strategies and poor search engine placement. We’ll take a look at the fiction surrounding submission software, meta tags and in-house optimization before running to ground rumours of the cost of search engine optimization and the quality of the traffic it generates.

Myth #1: Software Can do it All
If you believe some expensive program can take care of all your search engine optimization needs, we have some property in a Florida swamp for sale that you might also be interested in.

The myth that a piece of software can do it all is quite pervasive and is fuelled in part by ads that promise website submissions to over a 1000 search engines. Many of these programs are actually worthless and could get you labelled as a spammer. Some create junk doorway pages, while others submit your site to link farms which may actually hurt your search engine ranking. More importantly however, because the 4 leading search engines and directories generate 90% of search engine traffic, it’s a waste of time to focus on the bit players.

The fact of the matter is that it takes a lot of time and effort to identify keyphrases and optimize website content. Software can certainly help to automate some aspects of the process, but you can’t expect any application to make the job of search engine optimization easy. Most search engines now have measures in place to prevent automated queries. When it comes to search engine optimization, it’s good idea to follow the old adage: “If you want something done right, get a professional to do it.”

Myth #2: Optimising Meta Tags Alone Will Guarantee a Top Ranking
If your idea of search engine optimization is tweaking a few meta tags, than you’re in for a disappointment. The notion that optimising meta tags alone can guarantee your website top placement is a myth. The truth of the matter is that meta tags are becoming less and less important.

In fact, many search engines now ignore them completely because they invariably contain keywords that have nothing to do with the content that is actually on a page. In the past, some webmasters achieved a high ranking by repeating the same keywords over and over in the meta tags, but today these tactics just won’t wash. Sites are actually penalized for this kind of spamming.

While meta tags may still be useful, they are no longer the be all and end all of search engine optimization. It doesn’t hurt to include them however. Keep in mind that in some search engines, the meta description shows up in the search results page. A brief, well-written meta description will give web surfers a good idea of what your page is about and may even encourage them to click on your link. In directories such as ODP human editors sometimes use meta descriptions as a basis for the directory’s description of your site.

Myth #3: Search Engine Marketing Can be Handled In House
While in theory it might seem like a good idea to get your webmaster to handle search engine optimization, in practice, it is usually anything but. Fact is, your in-house “expert” probably doesn’t have the time or the expertise to perform effective search engine marketing.

If the in-house webmaster or web team is actually looking for a task (which is probably not the case) recommend that efforts be focused on improving the visitor to sales ratio. Let the search engine optimization professionals get the traffic, and the in-house webmasters turn those visitors into more sales.

Search engine optimization used to be a piece of cake, but not anymore. Some strategies that were once perfectly acceptable will now get you labelled as a “spammer” and could harm your rankings. Your in-house expert would have to pour over hundreds of search engine optimization documents just to get his feet wet.

To actually keep abreast of the rapid changes in the field, he would have to scan another 50 pages a month worth of articles, newsletters and discussion boards. If he juggles search engine optimization duties with a full-time job, sooner or later, one of the balls is going to hit the floor.

If you use your site to sell many products or to generate sales leads, you probably need to outsource to a search engine optimization company. If your site features a lot of frames, graphics, or Flash animations, or if you sell your product in more than one country, you may also need professional help.

Myth #4: Hiring an SEO Expert Costs Too Much
There is absolutely no truth to the myth that search engine optimization experts are too expensive. Search engine optimization is generally far cheaper than any other marketing campaign you can conduct online or offline. It costs less than direct mail, email lists, banner ads, print ads, or booths at trade shows.

Yet most companies shy away from consulting search engine optimization professionals and instead rely on their own in-house “experts”. According to a study by iProspect, 97% of Fortune 100 companies are difficult to find in search engines –45% don’t even use meta tags, the most basic form of optimization. Since a lot of companies are doing such an astonishingly bad job of search engine optimization, you’d think they wouldn’t let the cost of outsourcing be a deterrent.

While a few experts may come with six figure prices tags, most have reasonable fees. A few thousand dollars can cover the cost of optimising an entire site and positioning it in the top 4 search engines responsible for more than 90% of web traffic. That means a fairly small investment could raise your site traffic by as much as 75% –a lot more potential than most other marketing campaigns.

Myth #5: Traffic From Search Engines Isn’t All It’s Cracked Up To Be

Many companies believe that search engine optimization is a waste of time and money because it doesn’t generate sales leads the way traditional marketing does. This is a polite fiction, no doubt bandied about by advertising agencies who don’t have a clue about how search engine ranking works.

Unfortunately, many companies are all too ready to believe it. They spend thousands on direct mail, email and online advertising campaigns to drive targeted traffic to their websites, but according to a study by CyberAtlas Research, 46% of them spend less than 1% of their marketing budget on search engine optimization; this despite the fact that sales leads and direct sales from search engine traffic is often equal to or better than those of more expensive marketing campaigns.

The vast majority of Internet users — some 85% — use search engines to find company sites. These are people actively looking for information on products and services, not just those whose curiosity has been piqued by an eye-catching magazine ad or press release. So, before you start shelling out cash to some ad agency for your next marketing campaign, why not consult a search engine optimization firm? You just might be surprised: traffic from search engines may be more than it’s cracked up to be.

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    I hereby state that I have received financial compensation for some of the posts on this blog from sponsors who want to have their product(s) and/or service(s) be reviewed by me.