A few decades ago, trading seemed something accessible only to a narrow circle of the elite, but with the advent of the Internet, the situation has changed dramatically.
Now you can open a Forex account in just a few clicks, and you are already trading on any of the selected exchanges.
But the more accessible stock trading becomes, the more various myths it acquires, and some of them are quite dangerous.
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What are actually trading myths, and what is true?
Myth #1
Everyone can trade on the stock exchange – yes, technically, you can learn how to open deals in just a couple of hours, but not every trader is given a stable income.
There are people who fail to achieve a positive result, despite years of study and practical experience.
One such example is Alexander Elder, a man who is the author of many books on trading , has developed more than one strategy, and created the well-known Elder indicator .
Despite all of the above, Elder never managed to succeed on the stock exchange, there were times when he made good money, but in the end he still lost his deposit.
Therefore, we can say that not everyone can professionally engage in stock trading, and the success of trading depends not only on knowledge and skills, but also on individual character traits.
Myth #2
For stock trading you need a lot of money – such a statement is only half true, and often causes huge troubles.
People borrow money or take out loans to engage in stock trading, believing that large transactions will help them earn a lot. But the volume of transactions does not save from draining deposits and a person not only does not receive profit, but also acquires a lot of problems.
In exchange trading, it is not the availability of money that is considered more important, but the ability to trade. Professional traders easily become money managers or PAMM accounts , earning on other people’s money.
Therefore, the guarantee of earnings is only the ability to regularly make a profit, this fact serves as a magnet for attracting investors’ funds to your accounts.
Myth #3
Trading is easy – many people classify any work at the computer as “doing nothing”, and trading is even more so.
According to most novice traders, to make money on the exchange, it is enough to turn on a computer or pick up a phone and open a deal, and now you are already a millionaire.
But stock trading is painstaking work that constantly keeps you on your toes, you regularly monitor the news, analyze the market and control open positions.
If you approach such work carelessly, then it is almost guaranteed to lead to losses, the days when you could invest in a certain asset once and only wait for its price to rise are long gone.
Today, most exchange transactions are closed within one day, and long-term contracts are concluded only by those who really need this or that product.