Like any relatively new and not without risk activity, trading is surrounded by a large number of myths. Some may have some credibility, but most of them are directly false. We invite you to know what are the trading myths so that you can have an accurate opinion about this activity and solve your doubts about how to start trading.
1. It is a way to earn easy money
Obviously, those who spend part of all their time investing in the stock market do so for financial gain. But it is not convenient to confuse the desire of earn money , something lawful in any activity, with thinking that it is something simple. who performs trading he does it not only to recover what he invested with benefits, but also because he likes to study the markets, see their fluctuations and seize the right time to trade. It’s not about a simple activity In fact, whoever starts trading (forex trading, or with cryptocurrencies) without knowledge and valuing their positions very little, will lose before they will win. It is a mistake to think that trading is going to solve your life or make you rich very quickly. If your thought is that, you better look for another activity.
2. Learning to trade is effortless
We are probably facing one of the most widespread trading myths. Fast courses that promise profits in a very short time, without hardly teaching you investment strategies or technical analysis, have become very fashionable. This goes against the premises of any trader. To begin with, because getting rich quick is not part of any objective, remember that if you want to enter any trading platform for short-term income, you will achieve the opposite.
But, in addition, learning to carry out financial operations takes a long time.
It is an activity in which you are constantly learning and that depends on a large number of external factors. These escape even the most experienced investors.
When operating with financial instruments, not only must a large number of financial parameters and operations between companies be taken into account. Any movement in the geopolitical plane automatically has an impact on the markets. We have recent examples with the Ukrainian conflict. Do you remember the unexpected event of the 9/11 attacks? They had a very negative immediate impact on all world stock markets, and no one had the ability to foresee it. You have to know a lot and about many fields to be able to carry out a stock market operation with a certain guarantee. But this should not be a discouragement for those who start, but rather an encouragement to start a solid career as an investor. A trader is not understood who is not up to date with current affairs or who soaks up information from many different fields on a daily basis. They all influence the markets.
3. There are trading strategies that never fail
This is one of the most widespread false myths about trading. there never is one perfect strategy , and this axiom is a consequence of the two previous points. The markets are in continuous movement, so trading with shares that, at first sight, may seem safe, at any moment can take a turn and become a risky strategy. Fake trading gurus are the ones who claim that A+B=C, when it doesn’t have to be. The best strategies are those that you can begin to master and that work for you at a specific time.
Never close your mind to any type of possibility, since learning must always be a constant in the career of any investor.
4. I can invest from anywhere
It is true that any online broker has a mobile application that greatly facilitates operations. But that does not mean that you should practice this activity anywhere and under any circumstances. Never lose your way, operating in the financial markets requires concentration, study and analysis. Something that should not be done on the subway, from a bar or with your children fluttering around. To trade with more guarantees, take your time, ensure some calm and try to be focused, this will increase the possibility of launching winning trades.
The best way to start is to use a DEMO account, since these accounts allow us to carry out operations without using real money, so that we can put our strategies into practice and learn safely. A broker that offers you a great simulator account is NAGAwhich offers you the possibility of trading forex, stocks, indices and cryptocurrencies, with a $10,000 DEMO account, join here
5. If I cover more, the better for me
It is never a good idea to try to trade in different markets or with very different securities. With this we want to convey that it is best to specialize in something specific and work on it. Regardless of whether it is foreign exchange (forex market), cryptocurrencies or commodities, it is always better to draw a roadmap on any of these areas than to want to cover a lot. The reason is very simple, if you specialize in something specific you will have a much greater knowledge about it and, therefore, the chances of error will be less.
6. I need a lot of money to start
No, in fact, it is not about what is desirable. If your trading knowledge is very limited or you are a novice, it is best to start with small amounts and check what this activity consists of. It is also highly recommended to use the demo accounts of the platforms. It is a place of learning where you operate with real data, but with fictitious money. This way you are not risking your assets. When you have acquired enough experience and know how a specific market works, you can start making the jump with real money, never in large amounts. So to the question How much money do I need to start trading? The answer is what you can lose without it being a problem.
7. Trading and casinos are the same
If you go with that mentality, you are thinking that everything happens by chance, but day traders know that this is not the case.
This is a feeling that those people who do not know this type of activity have and who think that it is about luck. We will not tire of repeating that day trading involves a lot of effort and hours of study and dedication. Therefore, except for very unexpected events, nothing is left to chance. It is always advisable to separate the image of the day trader from that of those people who have a stroke of luck and collect profits.
These are 7 of the most widespread myths about trading. Surely you have heard of them, since they do not stop repeating themselves continuously, but it is convenient to start clearing the way of false ideas that give a very blurred image of the reality of trading.
To put all your knowledge into practice, we recommend opening a DEMO account with NAGA that will allow you to have a DEMO account with $10,000 so you can do the operations you need without using real money. In addition, you will be able to discover the great benefits of Social Trading, and earn money while helping others to earn it.