There are too many misconceptions in Trading. Here are the Top 10 Day Trading Myths. we should be aware of these day trading myths.
Top 9 Day Trading Myths:
1.Gambling And Trading Are the Same.
This is the very first thing I heard from family, friends when I told them I am a trader. The thing they don’t understand is that I am not a gambler; I am the casino. Each time I trade, I do so with the odds in my favor, and I limit my risk per trade. When the odds are against me, I do not place big trades. I run my own business, which involves buying and selling merchandise. The roulette wheel is not in my hand, nor am I pushing the handle of a slot machine.
2.Brokers and wealthy people are the only people allowed access to the markets.
Although the markets are an incredibly free place to do business, they still contain government interference, high-frequency trading, and “dark pools”. The good thing about a little brokerage account is that you can still decide how much you want to invest, how you want to exit, and what size to trade. The trading industry is one of the few professional activities that anyone has access to with a little money, and it welcomes newcomers with open arms. If you don’t have much money, you can’t walk into a hospital and try out for a job in medicine or basketball. You can, however, trade alongside George Soros and Warren Buffett for a few hundred dollars. There is no greater opportunity on earth than trading to build a small account into a big one.
3. Crashing markets will recover – Eventually
If a market crashes, It will definitely recover. It is part of the game. You may calm during a Stock Market Crash. Rember the market crashes.
This market crashes also recovers as the rule of the market.
4. A rising market must eventually fall.
Most people invest or trade when the market is rising, but investors must keep in mind that the market will not always be in a rising state. It will also fall as a rule of the stock market.
5. A Little Knowledge Is Better Than None
The account of the trader who thinks they know what they are doing but doesn’t is in the most danger. Unless they understand risk management, discipline, different types of markets, volatility, and other important aspects of trading, they are better off staying out of trading until they have the full understanding of what is needed in order to succeed long term.
6.A market cannot be timed.
Since so many people have traded systems successfully for decades beating the market, this is almost comical. Since the dawn of time, many of the people who used systems to time profitable trades and beat the markets have come from the little town of trend following Ville.
7.A college degree is needed to trade
It seems that people also believe you need a six-figure education to trade, or that you wish to work for a bank or a mutual fund. Trades are my whole passion, because of the independence in making my own decisions and not answering anyone. I never wanted to go to college for the purpose of building up huge trading accounts and becoming an entrepreneur. I would rather build up a big trading account and then become an entrepreneur once I was done with college.
8.You must spend the Day Staring at a Computer When Trading
Whether it was from swing trading, position trading, or trend following, my biggest profits have all come when a trend developed over days, weeks, months, and sometimes even years, as opposed to when I entered a spot where a trend emerged out of a stock. When trading hours are over, I prefer spending less time in front of the computer. However, I have worked hard to prepare for the trades and trends I would implement during the trading day. I best trade when I ride a trend and just let the profits grow, rather than watching them tick by tick.
9.A trader is not made but born.
As in all areas of life, I believe that traders are not born they are made. I think a person with a work ethic, passion, and drive makes themselves a trader. They do what has to be done, learn what has to be learned, do the homework, persevere, and emerge as a trader; nothing stops them only a period of time stands in their way of ultimate success and wealth.