Olymp Trade unravels 5 myths about Online Trading

There are numerous myths about online trading, but the many different voices and opinions can make it hard to separate day trading myths from day trading reality. These falsehoods about the realm of forex trading come from many platforms and personalities. However, just because one podcast might discuss how day trading is a great way to make millions, whereas another YouTuber will bemoan the entire enterprise as fraudulent, does not mean either are completely correct.

To help budding traders figure out what is true and what is false this article will address the top 5 myths and offer honest thoughts about their validity.

1. Online trading is a scam

The biggest, oldest, and most prominent online trading myth is: the entire enterprise is one big, elaborate scam, created by stock promoters and brokers to drive up stock prices so a chosen few can get rich off of unsuspecting new traders’ naivety akin to a ponzi scheme.

There have also been claims of online brokers not paying out to their traders, misquoting prices, and other forex scams. These too, are uncommon situations for traders as most brokers are members of oversight organizations or follow the rules set forth by a governing body.

As an example, Olymp Trade is a member of the International Financial Commission, which protects their traders in the event of wrongdoing on the part of the broker. FinaCom acts as a third party intermediary between the trader and Olymp Trade if a trader feels they have been cheated or scammed by the platform. If Olymp Trade scammed its traders each trader would be eligible to receive up to 20,000 Euro from the Financial Commission.

2. Forex trading will make you rich

This is a loaded statement. It is true that trading in the forex market can make you rich, but whether or not trading will make you rich is really up to you. With improper education and strategies trading can lose large sums of money.

Becoming a successful forex trader requires time, energy, and commitment. There is much to learn and the best traders understand it is a never-ending process.

Educating yourself about the markets, strategies, analysis, and tools are essential to your success as a trader.

Brokers like Olymp Trade offer full educational suites complete with explanations of all trading aspects and financial markets. Their educational material extends to their YouTube channel which has explanations and examples in over eight languages.

3. You can be successful without training

It’s one of the most common and misleading trading myths, that anyone can become a day trader, no training necessary. Even though a certificate is not required to start day trading, to assume you don’t need any education or practice is not only foolish, it can be financially dangerous.

To become consistent and effective long term success at anything, practice is a must. The best way to gain expertise is by seeking out proper training.

The Olymp Trade platform’s educational suite and free demo account were created to make trading more accessible to all. Through the demo account, traders can practice their newly learned analytical skills, strategies, and gain invaluable hands-on experience in live markets. Training in live stock markets, monitoring real currency pairs, or following commodities and indexes will best prepare any trader to become successful.

4. You’ll be a profitable trader right away.

All traders will experience ups and downs early in their career. However, with time and by learning from their mistakes, ultimately they begin to make reliable and steady profits.

A trader who earns too much too fast is in danger of becoming overconfident and mismanaging risk. The psychology of trading is a minefield traders must learn to navigate. This is where a solid trading strategy and money management system are most useful.

5. You can make thousands of dollars on a single trade.

This is true, but monstrously misleading because the opposite is also true: you can lose thousands of dollars in a single trade, as well. This myth is dangerous because people are blinded by the nugget of truth that it is possible and believe that it is not only possible but likely, which is not the case.

Traders consistently making thousands of dollars in a single trade have made a long career of trading. Though even they did not start this way, like all traders should they started small. Successful traders earn real money by mitigating risk, putting a thousand dollars on a single trade is a massive risk. Those who have made a career of trading are well aware of the risks they are taking with every trade. To assume all of your trades will yield thousands is foolish.

Instead of assuming you’ll make that much on every trade, focus on mastering a trading and money management strategy that will be reliable.

Conclusion

Educating yourself is the best way to avoid falling victim to these or any other myth of the trading world. Trading through a trusted and regulated broker will help you avoid issues while trading. Find a broker with a vested interest in your betterment as a trader through education, practice, and support. Many online brokers offer two out the three. Trading platforms like Olymp Trade provide all a new trader needs to navigate the most common pitfalls and myths around trading.

Now armed with the knowledge about these common myths go forth and become a successful trader.