Trading Myths That Everyone Still Believes
Trading and investing is surrounded with myths and legends. You’ve probably heard of trading horror stories that have put you off the thought of trading for a living. However, there are so many myths floating around the internet that many of them seem to have been concocted by failed traders that want to steer others away from their mistakes. Either that, or it’s successful traders that don’t want competition!
Whether you want to trade for a living or test the waters, sites like The Fortunate Investor can provide a lot of information on the intricacies of trading. But before that, let’s demystify some of the most common myths about trading to get you excited to start.
Trading is Gambling
This is so far from the truth that it hurts. Unless you’re playing a zero-sum gambling game such as Poker (you win if someone loses, there’s no “house”) then gambling is always weighted in favour of the casino or system. Many eager people have jumped on the trading bandwagon only to be burned by life-long scars because they were unprepared. They’ll shout and scream at how unlucky they were, and they’ll tell all their friends never to get into trading because it’s unpredictable.
As volatile as some stocks can be, trading isn’t random or gambling. You need a lot of practice, patience, and analytical skill to make it as a trader. You also need an enormous amount of self discipline and you need to know when you back down from unfavourable or failing trades. If you’re a skilled trader, then it can bring in the same consistent income as a regular job.
You Need a Supercomputer
You’ve probably seen traders in stock images that have hundreds of monitors. They eye every single one as if they’re a superhuman that is capable of processing the information of 30 different screens at once. But don’t worry, you won’t need that kind of setup or anything close to it. In fact, most of those stock images are exaggerated and you only need to monitor a single screen when you start up.
The truth is, you can install several monitors and have them all watch different stocks, but you don’t need to do it at the beginning. Once you’re good at trading stocks and you are capable of processing that information, you can decide to upgrade. You can trade on any computer device—even a laptop. Carry it around with you and conduct your business wherever you go.
You Need a Degree to Get Started
This simply isn’t true. Trading doesn’t require an advanced degree in anything. It doesn’t matter what educational background you come from, trading is open to anyone regardless of race and background as long as you have the will to learn and study how to be a good trader. Most of the time, traders with advanced educational backgrounds and degrees find it hard to cope with being on the same level as an average joe, which can demoralise them and put them off trading. If you have an education in trading-related studies, then you can use it to your advantage, but don’t expect to make it big without practice.