When it comes to trading, there are a lot of ideas and rumors flying about which are coming from both those that have traded for a long time, those that are just starting out and those that do not trade at all. Some of what you hear is about what it is like to trade, how easy it is to trade, and what can be made with trading. Some of it will be real, and some of it will be simply rumors. Today we will be looking at some of the uncomfortable truths about trading.
It takes money to make money.
Many of the people who start trading do it to try and make money, the problem is that a lot of them do it with the expectation that they can make a lot of money if they deposit $10 or $20. While trading is becoming more and more accessible, with brokers allowing people to trade with as little as $1 or $10, this has given people the idea that you can make a lot with such a small deposit. The truth is that you require a larger balance if you want to make anything worthwhile. You will need an account of $10,000 or more if you really want to make enough to live on, which is one of the goals that many people want to achieve.
Don’t get us wrong, you can make money with a $10 deposit, but you will be making pennies, not the sort of profits that have been promised to you on some of the adverts that you see about. #Trading needs to be viewed as a business instead of a hobby, for a hobby you may put in $100 but if it is a business you will be putting in a lot more money and you will then trade it like a business, resulting in much better profits.
You will make a lot of bad and wrong trades.
If we could be right 100% of the time, then you would be the most successful trader of all time, and you probably wouldn’t be reading something like this. You will make some bad trades and you will make some mistakes. In fact, you will make a lot of them, especially when you are just starting out. In fact, when you first start then the majority of your trades will probably be bad ones, this does not mean that you’re bad at trading, it just means that you are still finding your feet, something that everyone needs to go through. The unfortunate thing is that many newer traders do not realize that you are not going to make money to begin with and that you will be making a lot of mistakes, so if you are, do not be disheartened, everyone goes through the tough start, get through it and you will be able to move on to your journey of becoming a successful trader.
There is not a perfect strategy.
This is something that everyone is looking for, that perfect strategy that they can learn and then use for the rest of their life, the truth is, this type of strategy does not exist and will never exist for a number of different reasons. The first is that the markets will always be changing, they do not remain the same and will always change, they always have and they will continue to do so. Due to this, a strategy may work during one condition, but as soon as it changes, that strategy will not work anymore, you will need to adjust it so that it can adapt to the new conditions. The second reason is that if everyone had the same strategy, the markets would not movies ta all, everyone would be among the same trades and so no one would make any money, this is because you can only make money if there are people trading the other way to you, so if we all used the same strategy there would be no one to trade against, and so no money to make.
You need to be there at the right time.
This one is both true and not so true at the same time, it all comes down to the strategy that you are using for some you will need to be there at the right time, this can, unfortunately, mean that depending on where you live. You may need to be up in the middle of the night in order to catch the trades. If you live in a country that is active during the Asian markets, it can be a lot harder for you to be active in the London or New York sessions which are where most of the liquidity in the markets is. If you want to be successful in these situations then you will need to be able to be there to trade. This can be countered slightly by using trader orders, put them in, and then they will automatically take the trades, but these do not take live events into their equations so things can change while you sleep which could put your trades in danger.
Trading may not be for you.
Trading is a complicated and very difficult thing to become good at, so while it may be highly accessible these days, being profitable is far from accessible. Around 95% of traders quit or lose thor money in the first month if this is you, then it says nothing against you, trading takes a lot of time, effort and patience to be good at it, the majority of people will struggle to have all three of those things available to them. Work, family, and just life can very easily get in the way and make things harder for you. For some, trading is just not for you, and there is nothing wrong with that.
Robots, Signals, and Expert Advisors are not hands-free.
Something that a lot of people think is that all of the robots and signals that are being shared about mean that you do not need to learn how to trade, you do not need to do anything and you can still make money. This is not the case, have you wondered why there are not a load of millionaires out there that made their money from expert advisors? The truth is that they just do not work for a long period of time, the same can be said for the signal providers out there. Yes you can make some money over a short period, but things will inevitably go wrong when the markets shift in a way that the EA or signal provider is not able to deal with, this is when they blow and people lose their money.
You will not be rich tomorrow.
Trading is a slow process, in fact, it is a very slow process, so slow that you will most likely not see any progress towards your goals for a couple of months. People think that they can get rich quickly, but that just won’t happen, you will only be disappointed if you go into trading with that expectation. Lower Them, take your time and you can be a success, just don’t go in expecting the world overnight.
So those are a number of the truths that people do not know or simply do not want to know. Trading is not for everyone and it is not your ticket to financial freedom, at least not yet anyway.