Myths about Trading
I do not know anything about finance and I'm bad at math, I would not be a good trader !
It has nothing to do. The best traders come from all walks of life and from all walks of life. For example, a single-parent mother without a degree won a recent stock exchange contest in London.
You have to do long university studies to become a trader !
No. To manage your own money, you do not need to have a degree in finance. You must attend university only if you intend to manage the investments of a third party who is not your immediate family. In which case, you need to obtain a certification from the Financial Markets Authority.
The stock market, it looks so complicated !
No. It is not for the one who knows the basic principles and essential concepts. Once this knowledge is acquired, most people are able to trade on the financial markets.
When you trade the Stock Exchange, either you win the jackpot or you lose everything !
This is a biased and simplistic view without considering all that lies between these two extremes. We do not play with the stock market; we trade. Unfortunately some people play the stock market as we play at the casino.
You have to spend long hours trading to make a lot of money !
No. Earnings are not directly related to the time you spend in trading. In fact, most successful traders spend only a tiny part of their time there. Many people only work a few hours a week and are very prolific. They are not smarter or more talented than the average person.
Institutions hire professionals; to have a better performance is impossible !
On the contrary. The problem is not in the performance they get but in the performance they give you. In the beginning, an amateur currency trader will certainly have difficulty competing with a professional generating 3% profit per week but would make much more gains if he generates himself even a tenth of this return.
Everyone knows someone who has lost all the money invested in the shares of a company !
This is the typical scenario of an amateur and that's what might happen if you put all your eggs in one basket. Well-known forex traders diversify their positions and rarely risk more than 1% of their portfolio on a single security. Not to mention that a good dealer always places a loss limiter that will close his position in case of a turnaround.
To make gains, the value of my shares must increase !
No. It depends on the position taken on these actions. If you are in a buying position, the value of the shares must actually increase. On the other hand, if you are in a sales position, you make gains if the value of the shares decreases. We explain this in detail and how you too can benefit from falling stocks just as big institutions do. During the recent stock market crash, people who were in a sales position collectively earned $ 3 billion in profits; but that, we never talk about it on TV.
You have to be a finance mogul or a professional to get rich on the stock market !
No. Like everyone, these moguls and these professionals started somewhere. It is the meticulous application of the method that makes an excellent forex trader and not his title.
If you have any other questions, do not hesitate to write to us using the contact form!