If you’ve never navigated the trading world, it’s only natural to get a bit overwhelmed.
However, once you find your footing and educate yourself, the whole process is a lot less complicated than it seems on the surface. Many people are chomping at the bit to get started with stocks but often have their heads flooded with preconceived notions about what trading is actually like.
Below we’ve broken down the five myths and misconceptions about trading that need to be dispelled once and for all.
You Don’t Have What It Takes
“But I’m not a trader.”
News flash: nobody was born a master trader.
People from all walks of life, from college students to stay it home moms and beyond, have managed to learn the ropes of the markets at large. As noted in Tim Sykes’ Penny Stocks Guide an open mind and the desire to soak up trading knowledge are all that anybody really needs to begin trading. Just like marketing or sales, trading represents a skill that can indeed be taught by those willing to put in the work.
There’s a Foolproof Plan for Success
It doesn’t matter who’s advice or follow or what sort of stocks grab your attention: there will always be some trial-and-error involved when it comes to trading. Be wary of anyone offering a get-rich-quick scheme and promises of overnight success: it could very well be years before they reap the rewards of your knowledge. That said, patience is crucial for any trader.
You Need a Lot of Cash to Get Started
Again, everyone has to start somewhere. Very few enter the field with tons of capital to splash: that’s why investments such as penny stocks are enticing for newbies who don’t have a lot of money to throw around. By sticking with smaller stocks and spending discretionary income when you’re in the early days of your trading career, you don’t have to worry as much about risking it all.
You Need a Massive Battlestation
While multi-monitor displays and dedicated spaces for trading are nice bonuses, newbies don’t necessarily need all of the bells and whistles of a home trading station. There are plenty of traders out there who thrive when getting down to business on a laptop from the comfort of their local coffee shop. There is no one-size-fits-all trading setup: as long as you have a working computer and an Internet connection, you’re good to go.
You Need to be Plugged in 24/7
Perhaps the most notable misconception that deters people from trading in the first place is the idea that you have to be focused and in “trading mode” around-the-clock. However, this couldn’t be further from the truth.
While it certainly pays to be vigilant, it also pays to walk away from a potential investment or simply stew on a trade for a day or two. In a field that’s all about patience and playing the long game, there are certainly plenty of opportunities to unplug. The beauty of trading is that you essentially get to work on your own time and schedule.
There’s a lot to take in when you get started with trading, but don’t make the mistake of assuming the worst before you even get yourself off the ground. By understanding how to overcome these mental barriers associated with newbies, you can better understand how to move forward with your trades without getting caught up or distracted.