Trading Misconceptions that Almost Everyone Has

by Joseph Young 24 March 2021

As a trader, thinking that you will not make the mistakes that everyone does is nothing unusual. In fact, most people think this when they first start trading. Almost everyone is wrong about this. So, in this article, we will be talking about some of the most common trading misconceptions that almost everyone has and how you can avoid them. This insight will help you stay on the right path and far away from those ideas that can only damage your chances of success. Here we go!

Trading is like gambling

The fact that trading and gambling are similar couldn’t be further away from the truth. This is probably one of the most common misconceptions that people have and one that sadly causes lots of losses. Treating trading like gambling means risking way too much and falling into a vicious cycle that you may not get out of soon. The only way out is for you to realize that you’re making mistakes and to try and manage risks instead. Plus, a strong trading plan will also help you separate trading from gambling.

As a trader, you always need to do something

This misconception seems to be perpetuated by people who have always been unsuccessful and who want to drag others down with them too. Experts say that successful trading is actually boring because that’s exactly how it should be. In order to make money, you shouldn’t always enter and exit trades and do things just because you must. It’s all about having a clear action plan and waiting for the right opportunity. Also, if you turn to trading because you need it, you are on the wrong path.

You should listen to your gut, not your plan

Nothing further from the truth! Listening to your emotions while trading is a big mistake that will get you in trouble. Your trading strategy should be the only thing that you listen to and never deviate from. Having certain feelings about certain actions is natural but that’s where your plan intervenes. So, instinctual trading is a big mistake that will cost you money, time, and mental health.

In fact, in case you want to work with an online broker that knows all about these misconceptions and doesn’t let you fall for them, we recommend Atmo360. This is an online brokerage platform that renders trading in global markets easy for all traders thanks to a smart, fast, and user-friendly trading interface. Customers can trade CFDs on forex, crypto, stocks, commodities, and more than 200 other assets exclusively on their website. They have four account types to pick from depending on your experience level and a plethora of educational resources (like e-books and a glossary) to help you make the right decisions.