Understanding the myths will help you avoid finding unnecessary information that will be just be a waste of your time and may lead you down to the wrong path in trading. This article will help and guide you about why believing and following these myths can harm your trading journey. It is important to understand the art of trading rather than blindly accepting the facts that these myths exist. Here are the four myths and the reality about it.
Trading is gambling
Blackjack, poker, roulette, slot machines and many more are the real gambling. However, the misconception of people when they heard the word “trading” is that gambling will come to their mind. Why? Because they think that trading is all about getting rich quick and betting your trades; if it will win or not without using risk management and without using analysis.
You see, many people like to gamble; new beginners have this gambling mentality at first, otherwise understood. This will result in getting whipsawed by the market. As a good trader, having risk management will prevent you from having this gambling mentality. Therefore, you must always trade with what you are willing to lose.
Trading is get-rich-quick scheme
Most people think that when they enter trading after a day, week or even a month, they will have a huge pile of cash in their account. Unfortunately, that is not the reality.
In trading, you must treat it like a business, not just any kind of hobby that you will trade anytime you want. Yes. We all want to get rich, but getting rich in just a short period of time? You are not in the track of a successful trader. A profitable trader is consistently learning from the market and it takes time to get rich once they have an edge on the market.
The more indicators, the better
Wow! I have plenty of indicators on my charts! I will become a successful trader.
Sadly, you’re not going to become a successful trader if you don’t know how to use your indicators on your chart. Each indicator has its own functions and has certain market conditions to begin with.
If you just place the indicators because you just heard from someone or see it on the article that you read or watch it from the YouTube without knowing its real functions, then these indicators will be just useless. Think again and educate yourself about the market and this will result in you to become a successful trader.
Perfect Strategy
Holy grail strategy? 100% win rate? This doesn’t even exist in the market even the greatest traders on the planet don’t have a 100%-win rate. What is the key to become a successful trader? Trade with edge.
Trading with edge will help you in your trading journey. Once you find your own edge, stick to it, follow it and stay consistent with your strategy. If you trade according to what works, in the long run, you will be a profitable trader.