Trading has gotten so popular nowadays that you have so much resources on it and this sphere is expanding day by day, and it's astonishing given the fact that forex market is already worth around 7 trillion, and there is still plenty of room to expand to. Growing popularity of deman of course triggers growing supply of services, as there are much brokers, and of course a lot of resources on education. However, most of those resources are of basic quality, designed just to lure in people, and to get attention people can compose any stories they want, and this have led to a situation where some major myths are ruling the market, and perhaps maybe preventing people from beginning trading. I will try to bring on several popular myths and explain what is the actual matter:

Myth #1. Trading is the same as gambling

This gotta be the most widespread fact, but it's infact there, and there are many people who think this way or they say they felt it on their own experience. What really happened was that they just saw the graph and decided they can just know where the market is going to go, and when they opened a trade and put out all their money, the market did not go their way and they lost all their money in an instant. It's true that trading included financial risk, however, if this risk is not controlled, the outcome is going to be sad as in this case right here. Therefore, they claim that they lost money quickly, so they equate it to gambling, having absolutely zero information about this sphere.

The reality of this matter is that trading is far from gambling, even given the elevated risk. For instance, if your local broker allows you to buy Tesla stock, this you would call - investing, which is somehow different, but still the same thing. If the stock goes down and the company has bad press, you can loose the money the same way. In scenario of trading, you are in control. Gambling is not based on anything legit rather than coincidence and luck, in trading - there is no place for sheer luck. Traders spend years on their education, perfecting their skills and practising what they have learned on the chart. Using various methods of different analysis techniques, patterns, and other strategies, they get their profit, and this ain't gambling for sure.

For instance, you can analyze the Forex market using differnent analysis methods as fundamental: where you look for economic news to get the overall high timeframe movements and technical: to identify entry points and crack open short-term movement. The same goes to trading shares, where a trader would spend a lot of time analyzing the earnings calendar of the company to predict it's stock price.

Myth #2. Trading is costly, you need a lot of money.

Funny enough, this is an actual scenario for trading real stocks, not CFD as many good brokers offer. See CFD as we talked many times - means that you can trade shares and not worry about owning them, you just trade their price without owning the product, and this makes it so much easier because you don't deal with all the hassle. Moreoveer, you will get much more leverage on CFD, like 1:20 right here.

So when you try to trade real shares, most places couldn't even offer 1:2 leverage, it's mostly 1:1 and this means you would actually need some serious money to make profit. For instance, if you have 1000$ in trading real shares, and the share price moves 10% in a month in your direction, then you get $100 profit, and even less because you would pay the comission and trading fees and all the extra fees. While trading CFD, you get 1:20 leverage which means that with 1000$, you can control a 20k$ position and 10% swing in your way means 2K$ and brokers like Neotrades here only charge for spreads. Of course you would not be opening a position for your whole budget as this would be too risky, but still the opportunities are much more when trading CFD.

Myth #3. CFD trading is only short-term

Well, simply put - it is not. Sure that most people may prefer to trade assets like Forex or Commodities intraday, trading CFDs can be great for long-term as well. For istance, many prefer holding their positions on indices for a long time as they tend to have a continuous trend, and there have been cases of people holding SnP500 index for months and get the whole bullish trend (or bearish). What you will pay is swaps, as the position crosses from one day to another, but this would only be a minor part of the sum.

Myth #4. There's no Crypto CFDs.

And yep this sounds a bit strange, but I've seen some people talk about why they don't wanna trade crypto. Their reasons was that they don't wanna get involved in all of that headache with opening wallets and buying cryptos, exchanges, swaps and all those things which are fairly complex for beginners in this sphere, they want to trade cryptos but don't wanna mess with all the rest that comes when buying or selling them. However, there are crypto CFDs and you won't need to worry about all of those things, you can just have a trading account and trade crypto as you would trade forex or other assets, as this would be CFD trading, you wouldn't need to worry about owning the coins, you just trade their prices.

Myth #5. Trading CFDs is too complicated for beginners.

I am not trying to say trading is easy, in fact it's indeed a complex matter to get into. However, when you get an opportunity to change your life and be able to trade profitable, it means you can trade from wherever you want and whenever you want - this liberation is worth studing and struggling for. What is a myth in this case is that it's "unlearnable" and this is absolutely wrong, because there are so many educational resources, if you choose the right one, you can learn it, but you gotta give it your whole self.

Myth #6. CFDs are limited to only some assets, like Forex and Stocks.

And surely this is not true indeed, because when I was opening a buy position on OIL earlier this day, they must have delivered a couple of barrels into my apartment LOL. But there are CFDs for almost all asset classes, and CFD brokers only offer this type of trading, so you just trade the price without actually owning anything, and this is much more convenient. This is the main reason why brokers can provide some lucrative leverage.

Myth #7. Trading is about getting rich quick..

This is perhaps the most dangerous misconception about trading which has cost a fortune to many, many people. If you wanna get rich and you open a trade on GOLD and you go all in, and somehow you get some profit, the next is going to be loss, because it turns into gambling, which actually is bound to a myth number 1. Trading is never gambling, but illiterate trades can turn it into gambling, but real trading that leads you to stable profit is never about gambling. So if you want to trade because you wanna get rich overnight, save yourself the trouble and don't even start.

Nothing here is investment advice, either on the landing page or the Terms of Service page. Don't follow anything without thoroughly researching it.