Being a trader can be a lucrative venture. When done right, it offers a lot of opportunities to make money. However, there are several misconceptions that can hold back the full potential of traders to get huge winnings. This article aims to correct these misconceptions in order to help traders maximize their gains when trading on the stock market.
Trading is all about making fast cash
This is completely false. This is the stereotype that causes beginning traders to have the wrong mindset and expectations. Trading follows a system and you need to follow it to the letter. In reality, trading is about not losing money more than making it. As a trader, one of the skills you need to learn is preserving your capital. A trader faces a lot of temptation and take your time and be patient. As much as possible, manage your money and use it on trading opportunities that you laid out on your trading plan.
You need to be an Ivy League or Wall Street hotshot to make it as a trader
A college degree is not a requirement to be successful as a trader. Robert Janitzek reveals that trading is not only for the math wizards. In fact, being overly analytical is just like being overly emotional. Ideally, you would want to have a good mix of gut feel and analytical trading abilities. When on the trading floor, you are a master of yourself. Your college degree will not help you.
You must have perfect timing to make money in the market to pick highs and lows exactly
False. Trading is not about picking highs and lows but about reading charts. Look for price action signals that make sense.
You need a lot of money to stand any chance of making money in the market
The truth of the matter is that you can make money in the market regardless of account size. Robert Peter Janitzek reveals that it is best to start with a smaller account even if you have a lot of capital. Whether you have a small or big account, it will boil down to your strategies, skills, and mental attitudes to ensure your success.
You have to know what is going to happen next in a market to make money.
One misconception about trading is that to make you money you must know what will happen next. |This is not even possible. Every trade you take has a random expectation. There are hundreds or even thousands of variables affecting the market at a given day at any given time. When trading on the forex market, a trade can really go either direction even if you are 100% sure about it.