Top 5 Trading Myths Debunked!
Trading Myths...Where do they come from? 🤔
Some are outdated assumptions born long before online trading, some are rooted in failure stories, and some - brokers just want you to believe in! ☝☝
Let’s take a look at the Top 5!
1.💸Forex is full of fraud
Technically, there is nothing fraudulent about currency exchange, which is exactly what Forex is. Fraud comes from untrustworthy intermediaries, who scam their inexperienced clientele. For this reason, it’s always best to opt for a regulated broker. This way, respective authorities c n protect you and your funds in case things start to get fish.
2.♠️Trading = Gambling
If you trade like you play roulette, chances are - you will never be able to trade and sustain a living. Trading is rooted in knowledge: the right mix of technical and fundamental analysis, as well as proper risk management practices. If an Account Manager at a brokerage suggests you to take a chance - run. Trading is about weighted decision.
3.💪Go big or Go Home
The idea that you need a lot of money to get in the game comes from an era prior to online trading, back when retail traders needed a lot of cash to enter the FX arena. With the advent of online trading, one is free to trade with pretty much as much money as he wishes. The fact that it hardly makes sense to trade with a $100 balance is a different story.
4.🥚The more positions the better
Every asset is an art to be mastered. It’s true that you should look to diversify your portfolio and not put all your eggs in one basket, but going for 20 open positions at once hardly increases anything, but your risk exposure.
5.🎓Trading takes special skill
Although trading isn’t necessarily “easy”, as most brokers would like to put it, it’s one of the spheres where an Economics professor is likely to fail more than a simple sales clerk who devoted the right amount of effort. Indeed, with the right self education and a little guidance from a qualified Account Manager - it’s possible to start trading for a living fairly quickly.