There are plenty of myths. Let’s highlight the main ones:
- You can get rich quickly in the financial market
Trading is a job; it’s a business. Trading needs to be trained like any other profession. You will only become a profitable trader after you get a profitable strategy from someone. Remember about the 10,000 hours theory. It is necessary to expand not only knowledge about the market but also to train the trader’s psychology.
- Successfol traders have a special secret and hide the Grail
There is no Holy Grail. Successful traders understand how the market works, the initial market processes and the probabilities. There is no single model or indicator that works all the time. If the Holy Grail really existed – there would be no financial market.
- The more components in the trading system, the more accurate analysis
If the trading strategy involves complicated analysis based on different analysis methods, this trader needs to learn how the market works. Successful traders use a simple strategy based on an understanding of market processes. So keep it simple.
- The more trades, the more profit
Another myth pushed by scalper traders. Yes, you can make money with scalping. But statistics show that scalpers usually leave the market after a few months. So it is better to focus on intraday or positional trading. Even if you trade intraday, 1 to 3 trades per day can provide a good and acceptable level of earnings.
- The market is chaotic
There is no chaos in the financial market. Even on the smallest timeframes, the same market processes work as on higher timeframes, and the market is fractal. The market is built on a certain logic. It cannot be otherwise. Every movement on the market happens for a reason.
- The market is constantly changing
The principle of pricing, as it was 100 years ago, has remained to this day. And will remain in the future. Because there is a buyer and a seller in the market, and there is no way to add a third party. Many new participants appeared on the market in the last 20 years: algorithms, arbitrageurs, hedgers, and HFT appeared. The technological part of the execution of orders has also changed. But they are the same buyers and sellers, but with their own aims.
Have a good trade.
