TRADING MYTHSHello traders!
There is a lot of information about trading on the Internet and it is sometimes difficult to understand what is true and what is fiction.
Today we will try to sort out the most popular myths and understand what is really true and what is not.
Work without rest
You have to work hard, but don't overdo it.
If you watch charts 24/7 or study hundreds of systems, you will simply go crazy.
There will be a mess in your head, and most importantly, you will be tired.
Improve your skills and discipline, keep a trading journal and analyze trades, and don't forget to rest.
It's a matter of discipline
Discipline is a very important skill for a trader.
Through discipline, you can control your emotions and follow the rules.
But do not think that one discipline is enough to be a profitable trader.
If you are losing money over and over again, it may be because of your trading strategy.
Analyze your trading and find your style.
Point of entry
The entry point is very important when making a new trade.
The better the entry point, the less the price will go against you if you have analyzed everything correctly.
However, there are other factors that play an important role in trading: position size, stop loss, trade management, etc.
The entry point is just a part of the whole work.
Did you know that even with random entry points, you can still be profitable if you think about stop losses, position size, and trade management?
Profitability
Trading is not a one day job.
And do not expect that you will take a huge profit in an hour.
The main task is to be profitable at a distance.
Don't run for quick profits.
Remember that the more positions you open, the more likely you are to lose.
Engage in consistent profits that are different for different trading styles.
For scalpers, consistent returns mean making a profit every quarter. For traders who trade daily charts, consistent returns will mean making a year's worth of profits.
Determine the value of constant return for yourself and follow the plan.
Trading is a risk
Every day carries a variety of risks.
You run the risk of being hit by a car or having an accident.
But after a few driving lessons, the risk of getting into an accident decreases.
It's the same with trading.
Over time, you will become more experienced and will become better versed in trading, thereby reducing the risks.
Everything in life comes with some risk, and your job is to keep all possible risks to a minimum.
Leverage
There are a lot of advertisements on the Internet for brokers who offer crazy leverage.
Brokers say that you can make 100% profit from one position, but they don't say that you can lose everything.
Leverage in inexperienced hands will result in the loss of the entire account.
Always remember that leverage is a double-edged sword. It can increase both your gains and your losses.
Grail
Everyone wants to find it!
But he is not.
The Grail does not exist, and professional traders do not have any secret.
To be profitable you must have experience, knowledge and discipline.
This is what distinguishes professionals from beginners.
You can make $100,000 out of $1000
You often see ads that say you can make $100,000 out of $1,000.
It is unlikely that there will be at least one newcomer who is able to do this.
Seeing such an advertisement, beginners think that it is possible to do it in one transaction.
In trading, you need to have a lot of money to earn a lot. If you have a small initial capital, then you will not be able to earn a million dollars in the short term.
In the early stages, think about how not to lose capital, and only when you learn this, you will understand how to make a profit consistently.
Where will the market go?
In the beginning, every trader wants to know exactly where the price will go.
Essentially, it means knowing the future, which is impossible.
No need to try to predict the future, in trading you will earn thanks to probabilities.
You should study this topic and understand that you don't have to be right on every trade.
You can be wrong more than half the time in determining future price action and still be profitable.
It is enough not to lose more than you earn.
Cut your losses and let your profits run.
Conclusion
The world is full of trading myths.
There are gigabytes of information around and it is very difficult to understand what is true and what is fiction, what is really useful and what is not.
Study the market, but don't believe everything you read.
Listen to the best, but don't forget to think with your own head .
