If you are to become a successful trader, you need to conduct research online and do your homework. The only issue is that there is also a lot of misinformation online, and the last thing you want to do is fall victim to this. To make sure that this does not happen, read on to discover some of the most common trading myths that you need to stop believing.
Machines are not reliable – A lot of people avoid using an automated trading platform because they have heard that such software cannot be trusted. This is not the case, as these platforms operate based on the pre-defined rules that you have put in. They use trading signals and any other indicators that have been incorporated to generate profits from trades. If you are not experiencing any profit from your algorithmic trading platform, perhaps this is due to the way that it is set up, rather than the tool itself.
Higher timeframes are easier – Another myth that a lot of people believe when it comes to trading is that higher timeframes are easier. This is not necessarily the case. On the flip side, lower timeframes are not necessarily more difficult. The timeframe you designate for a trade is a very personal matter and it depends on your skill set. For example, if you are someone that has their emotions in check and you can execute a plan quickly, you will probably find lower timeframes easier.
The more complex a strategy is, the better it is – In fact, the opposite is usually true. If you have a complicated strategy, you are only going to end up confusing yourself. These strategies can be too difficult to execute. By the time you realize what you are supposed to be doing, the opportunities have gone. It is all about devising a strategy that is effective and comfortable for you. It does not matter whether it is simple or not.
You need to watch the market 24 hours a day – If you do this, you will only end up making a tired mistake. While the market never sleeps, you need to! Watching it 24 hours a day is not required, yet you do need to make a decent commitment. Still, you can hold down a job at the same time.
Trading is easy – Last but not least, let’s end with one of the biggest myths out there – that trading is easy! This could not be further from the truth. After all, if it was easy, we would all be doing it, right?
Hopefully, you now have a better understanding regarding some of the most common trading myths that you need to stop believing. The Internet is awash with misinformation today, so separating the truth from the fiction is pivotal when conducting your necessary trading research.