5 common misconceptions that stop you from becoming a trader
Becoming a trader can be difficult for anyone. There are plenty of misconceptions floating around that add a level of uncertainty to the industry. Commonly people believe what they are told and end up giving up on the idea of being a trader. 5 common misconceptions that stop you from becoming a trader.
I'm not ready
Start now and you will thank yourself later. The first step is always the hardest. The sooner you start, the quicker you start learning the ins and outs of trading. Starting early means you will better understand trading sooner. It’s more important to start trading than it is to wait for the perfect moment. You could be missing out on life changing opportunities if you wait any longer.
I need a trader
The internet is your best friend when it comes to trading. You have unlimited access to any information you need. There are endless resources online to help you build your first investment portfolio. This creates less need for a broker.
A broker will help and it’s still wise to get one, especially when you are starting out. Traders are experienced and valuable sources of knowledge; however, you can teach yourself anything new. With the help of the resources on the internet, you can learn quickly. You can even get practice and experience with trading website that deal in virtual currency.
You don’t need to reply on one person’s opinion. There is easily available information at your fingertips, you can interpret this information and make decisions on your own.
Too dangerous and volatile
The greater the risk the greater the reward. Yes, there is risk in investment and trading, but there is plenty of ways to reduce the risks.
The first way to reduce risk is better your skills and knowledge of trading and the market. Trading courses offer great insight and strategy into the Forex market. You can mitigate risk with time and effort, gaining knowledge through research.
There are also different types of trading and investment that are considerably safer than others. You will soon realise that event the safest investments carry some risk. You will have to weigh up expected value and find areas that give you the best chance of making profit.
Get rich quick
You will make money from trading and investments but it will take time. Don’t expect to make money instantly. Making instant money is one of trading’s greatest myths. Experienced traders and investors will tell you that it takes time to make decent money.
For traders, it takes time to learn how the market works. Gaining knowledge and experience doesn’t come instantly, you must spend time and effort becoming better.
Investments are slow burning sources of income and can take months or years to see return. If you are being told that you will make money overnight, that is a red flag.
Some exceptions can be made to this rule, but that is in a very rare scenario. Expect to wait to see return.
Banks are safer and easier investments
Banks are very useful for investors, this does not make the great investments. In most cases a bank will be safe investment, however, you could find you lose money as the low return is not made up for after taking inflation into account.
Why are banks good investments? Like previously mentioned, banks are typically the safest option. You won’t see a large bank go out of business, quickly lose value or take your money.
So that's it! Be sure to give up those common misconceptions about trading and give some investing a try... You should start earning money sooner than you might think. Good luck!