Myths of Trading
There are many trading myths that affect both novice and experienced traders.
Typically, these myths force traders into a narrow belief that they have to be perfect or nearly perfect in order to succeed.
This myth, along with a few others, holds traders back from achieving their true mission-making profits.
Myth 1 It's easy to trade if you can just pick the direction the market is going.
Reality Ninety-five percent of traders lose money when they trade futures and forex.
If all it takes is the ability to pick the market direction, why are people still not succeeding? There are many great advisory services and newsletter services out there, but in order to succeed in trading, you must have more versatility.
Picking a market's direction does not match up with its timing, nor does it indicate you will succeed in exiting the market with a profit.
Myth 2 If I could just be a day trader/swing trader/position trader like person X, I would be able to make money.
Reality In order to succeed in trading, you must trade to your own needs, desires, capital, wants, goals, risk, reward, volatility levels, and so on.
No two traders are alike.
Customize your trading for your life! A study was conducted in which sports scientists wanted to do their best to figure out what made the best quarterbacks in the world great.
After reviewing video after video, they came to one conclusion: Every quarterback had one thing in common-nothing.
Everyone approached the snap and release differently.
Some could run, others stayed in the pocket well, others played a short game, and still others played a long game.
Once you learn the basics of our trading method, you will be able to find your personal style as well.
Myth 3 If I don't see success in X time, futures/forex are impossible to invest in.
Reality Any undue pressure you put on any new endeavor makes it more difficult to succeed.
One trade should never make or break you.
Too many beginners come to futures and forex trading betting the farm on one trade.
They pick some seasonal opportunity, or they read something in the papers, or a broker will call and hype them up on the biggest investment since sliced bread.
Whatever the case, when that one opportunity fails, they give up.
These same one-time investors will then come back to the markets 18 months later and do the exact same thing all over again, buying a trade as opposed to learning how to trade.
Step out of the box.
I recommend that you invest at least 100 hours paper/demo trading and real trading in order to become successful.
Also, before you decide on any new business venture, you have to carefully prepare and plan to decide on the exact type of business you will be in.
It is very easy to get caught up in the hype of the markets.
One of the most prolific promotions during the dot-com bubble was day trading.
This day-trading phenomenon encompassed e-mini S&P, the Dow Jones, and the e-mini Nasdaq.
While very exciting, it became clear that not everyone was suited for this type of trading.
Whether their lifestyle didn't make it conducive, they were holding down full-time jobs, or their stomachs couldn't handle the constant flip-flopping that's required of successful day traders, the hype led them to participate in a type of trading that in the long run worked against their overall personality.
The same thing occurred when forex trading was first introduced-it became heavily promoted.
While some have found success in this marketplace, the numbers play out just as dismally.
Ninety-five percent of the traders are simply not succeeding in their trading.
To add insult to injury, the number one corporate player in the forex investing arena, Refco, ended up closing its doors and being delisted from the New York Stock Exchange.
Now that you have laid a few myths to rest, I hope that you are beginning to see it is very important that you become your own trader.
No one else can determine for you what type of trading is best.
The quicker you come to that realization, the less frustration you will experience.
The first step in taking control comes through the process of picking the right market that fits you and your goals.
Typically, these myths force traders into a narrow belief that they have to be perfect or nearly perfect in order to succeed.
This myth, along with a few others, holds traders back from achieving their true mission-making profits.
Myth 1 It's easy to trade if you can just pick the direction the market is going.
Reality Ninety-five percent of traders lose money when they trade futures and forex.
If all it takes is the ability to pick the market direction, why are people still not succeeding? There are many great advisory services and newsletter services out there, but in order to succeed in trading, you must have more versatility.
Picking a market's direction does not match up with its timing, nor does it indicate you will succeed in exiting the market with a profit.
Myth 2 If I could just be a day trader/swing trader/position trader like person X, I would be able to make money.
Reality In order to succeed in trading, you must trade to your own needs, desires, capital, wants, goals, risk, reward, volatility levels, and so on.
No two traders are alike.
Customize your trading for your life! A study was conducted in which sports scientists wanted to do their best to figure out what made the best quarterbacks in the world great.
After reviewing video after video, they came to one conclusion: Every quarterback had one thing in common-nothing.
Everyone approached the snap and release differently.
Some could run, others stayed in the pocket well, others played a short game, and still others played a long game.
Once you learn the basics of our trading method, you will be able to find your personal style as well.
Myth 3 If I don't see success in X time, futures/forex are impossible to invest in.
Reality Any undue pressure you put on any new endeavor makes it more difficult to succeed.
One trade should never make or break you.
Too many beginners come to futures and forex trading betting the farm on one trade.
They pick some seasonal opportunity, or they read something in the papers, or a broker will call and hype them up on the biggest investment since sliced bread.
Whatever the case, when that one opportunity fails, they give up.
These same one-time investors will then come back to the markets 18 months later and do the exact same thing all over again, buying a trade as opposed to learning how to trade.
Step out of the box.
I recommend that you invest at least 100 hours paper/demo trading and real trading in order to become successful.
Also, before you decide on any new business venture, you have to carefully prepare and plan to decide on the exact type of business you will be in.
It is very easy to get caught up in the hype of the markets.
One of the most prolific promotions during the dot-com bubble was day trading.
This day-trading phenomenon encompassed e-mini S&P, the Dow Jones, and the e-mini Nasdaq.
While very exciting, it became clear that not everyone was suited for this type of trading.
Whether their lifestyle didn't make it conducive, they were holding down full-time jobs, or their stomachs couldn't handle the constant flip-flopping that's required of successful day traders, the hype led them to participate in a type of trading that in the long run worked against their overall personality.
The same thing occurred when forex trading was first introduced-it became heavily promoted.
While some have found success in this marketplace, the numbers play out just as dismally.
Ninety-five percent of the traders are simply not succeeding in their trading.
To add insult to injury, the number one corporate player in the forex investing arena, Refco, ended up closing its doors and being delisted from the New York Stock Exchange.
Now that you have laid a few myths to rest, I hope that you are beginning to see it is very important that you become your own trader.
No one else can determine for you what type of trading is best.
The quicker you come to that realization, the less frustration you will experience.
The first step in taking control comes through the process of picking the right market that fits you and your goals.
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