Muserh

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Today there will be a small shift from usual topics where we usually discuss something purely technical, or something closely related to trading, strategies, finances, stocks and so on… you get the idea. Nonetheless, it doesn’t mean that todays topic is not important - on the contrary, it may be one of the most important topics out there which is not talked that often, as everybody is so busy with tryna understand how this strategy works and the insights for trading something.
First of all, it’s cool and all that people come to this sphere, take interest in it and undoubtedly, it’s trending as of now, but it has been around for a long time. Right now, it has just become super easy to trade, not from the standpoint of skills - but the accessibility and availability of it through many different brokers, which are now allowing the vast selection of instruments to trade including pleasant conditions with high leverage and low spreads.
Looking from a logical perspective, it’s evident that trading is a complex sphere and a profession that requires a lot of skill to be perfected, and it is bound with constant improvement to stay on top of the game. There are many layers to being a pro. trader in constant profit, as a lot of experience with the charts and a lot of practise on your own strategy, which sometimes takes more than a year, or years. Logically, spending so much time focusing only on trading is not a good idea because usually, people need a source of income to live, as a result, most people adopt trading while on their job and try to combiine these two spheres, to be able to move to trading as their main goal, which is reasonable.
However, the most mount of mistakes get made during these periods, and here’s what happens usually. A person gets interested in trading and begins to learn this sphere, for a little while, it will go well until a dreadful loss is faced, and after a blow, many people just leave it and concentrate on something other. Those who still want to trade will now face some challenges, they will be required to balance trading and their day job, and this is require much more extra effort. During that time, many people may think that it’s better to leave the day job concentrate fully on trading, in hopes of becoming profitable after struggling a bit, which is real fantasy. What’s important in this scenario is that loosing your job with stable income to something that you have not enough knowledge in is not a good thing to do, and I only advice you to leave your job when you have at least 6-months statistics of your trading, and there was a stable growth of 10% or around each month - without any fuctuations, without +60% and -50% in the same week, stable and documented, and only then you can THINK about devoting all of your time to trading. Therefore, I don’t advice to leave your job hoping to get profitable in the process, it’s always better to balance your day job and trading.
Before I give out tips for how to balance trading and a job, let me explain why I choose this topic to discuss. It’s because I had this exact same situation and made a wrong choice, and I am now trying to prevent others from repeating the mistakes I did. I had a job with stable salary at a time and was around half a year into trading, but it wasnt going so well so somehow I concluded that my job was an obstacle to my profitable trading in future. I had some savings to live for several months without a job, and I thought it would be enough to get profitable by the time I run outta money.., and despite what people have told me, I quit anyway. So what happened wast that I realized - my day job wasn’t a problem at all, it was all about my determination and laziness, as I kept making the same old mistakes over and over again, so then I got my job back and balanced these two. Only then it worked out, with TIME and PATIENCE, and these are both needed, no matter how you look at it.
So how would you balance your trading and work: these are some of the tips that may help -
1)Choosing what to trade
This one is basic, but still important. For instance, if you want to trade stocks, their market opens at 9:30 NY time. There's 2 hour difference in time of NY and Santiago, so most of the activity would be during the work time. if we take traditional 9-6 job, so many will have to trade during their work, which is not that coumfortable, but still manageable (will talk about this later). Another market which is great to trade is Forex, as it is open 24/5, and you can trade before work or after work, and Asian session does aslo offer good opportunities, though the volatility is a bit lower. Or we can say crypto, which is open all day every day - and they can be traded on the weekends. I myself used to combine forex and crypto for weekdays and weekends.
2)Your trading style
The usual option that many people are interested in and doing is - intraday trading, where your trade is opened and closed in the same day. It’s not a bad option to be honest, and you can mostly control your trade from your phone at work, like devoting 5 minutes to see if you are on course, or the SL or TP needs some adjustments and so on.
The styles like scalping may not be as effective because they require full focus on the trade and if you are at the job, you will need to shift your focus as opening and closing on time in important there.
Swing trading is somehow the best option in my mind, it is stress free and you can focus on your work while your trade is playing out during the days.
3)Utilize features and tools
It goes without saying that a good trader needs to be able to use tools, and I am not talking about the indicators and else, this is your trading strategy which you are responsible for. What I mean are Limit Orders. For instance, you see that there’s a key level on the bottom and the price is moving there - but you will not have anytime then to open a trade when it reaches. You can just put a Buy Limit order to that level, adjust the SL and TP and let it be, if it confirms your thesis, the trade plays out, if it doesn’t, you can just cancel this order later. If it goes against your thesis, you are still safe cuz the price is moving the other way.
4)Do your analysis every day
Make a habit for yourself to devote 30 mins to 1 hour to trading BEFORE you head out to work, and I know you gotta wake up earlier now, and it may be hard, cold so on and so on, but it’s your choice, if you want it - do it. So when you hit the market before going to work, you can build your thesis for the day and put those limit orders or alerts and then go and focus on your work. You can control the rest from your phone, but be sure to analyze what the day is going to be like, and what news are here, and etc.
Also, devote some time after you come home from work, and this would be the deciciding factor of your progress - if you analyze your trades every day and keep track of them (journalling), then you will have enough data.
5)Focus on your work
Yes, this is important. When you are working - work. When you are trading - trade. But nothing in between, as splitting between those two will result negatively in both regards, so try to only check your trades during your breaks and etc. Remember, trading is still something you are learning, and treating it over your main job could lead to delusion, as the job which is brining money is more important as of now, at least logically.
Also, if you trade during your work and if you made some mistakes - you lost a couple of trades, and then you started revenge trading, and now you are full furious and you still need to work 4 hours more, what would be the quality of the rest of your work? See how it may impact, so focus on work when it’s worktime, simple.
6)Education
The most basic advice, but it’s especially important in this scenario, because you will be exhausted when you come from work and most likely have not much desire to study and practise trading. But you need to practise and learn to improve, if you keep putting the same old trades with mistakes, nothing is gonna change. So choose a time after or before work where you can actually study. Devoting 2-3 hours a day is not easy for a working man, but still possible.
Good luck in your job and in trading guys👌
Nothing here is investment advice, either on the landing page or the Terms of Service page. Don't follow anything without thoroughly researching it

Usually I don't do politics, no interest in that. However, when politics crosses with my passion of trading, this is the time I am happy to jump in and tell you what's what - and we will not be looking and reviewing the agenda today, but the impact of news on markets that we all love (or not) and trade. The thing is - everybody knows that news affect the market, and especially the stock market. Though stocks may be affected a little more than other markets, the impact is still strong and demands to be reviewed. Therefore, we will see the influence of political events on markets that we trade on a daily basis.

There's type of analysis called - Fundamental. This has nothing to do with fun, unfortunately, despite the name might suggest, but it actually studies geopolitical and economic events to accurately forecast what's gonna happen when a next event takes place. And by the way, don't think that if it's CFD - it doesn't actually have the same effect because you don't own an asset. IT has direct effect because it still mimics the price of a real asset so when the price changes, you would feel it for sure, despite being the owner of a commodity or not.

* Looking at overall impact of world politics affecting CFD markets, we can say that:

People usually go into safer instruments when there is a conflict or reasons that may indicate that local currency is going down, and in this case, most people turn to gold as a safe-haven to protect their funds. Many people used to choose USD as their safe-haven, but nowadays, this is not as it was, so more people are turning to gold.

By the way, if we are talking about safe currencies, there is one more legit currency to invest in:

The last time it was in a serious downfall - it was Jan 2010, and since then, it has been pretty strong - but why people choose it is not because of power, but because it's stable, supported by the Swiss government that is built on their values and banks ;)

* Supply stoppage

Not just war itself, but sanctions can also disrupt the flow of commodity, (sometimes even physically) and you can't export oil if the port or airport or any other logistic hub is taken over, duh, and this may raise the price.

* Tension

Political tension may cause uncertainty in the area, and the government may change the policies, rates and etc...

When the invasion of Ukraine happened in 2022, some assets were impacted the in the market:

* EUR/USD - as Russia was exporting gas to Europe, it stopped due to war and Europe being against it, and then the continent got cold... so the Euro has weakened by quite a bit. The price actually went down almost 15% since Feb 2022 until it's sublte retaliation from Oct to Dec of that same year.

* Wheat - before the war started, Ukraine was at number 7 in the list of largest wheat exporters of Europe, and after the war, the number went down, as you can pull up a wheat chart and see what happened after Feb 2022. On the 21st of Feb the price is around 840 and by the end of the week on 28th - over 1200. This can show you the overall scale of how powerful the impact may be, and this just a country at number 7 (was projected to be number 5 actually).

* Same thing happened with Crude Oil - and lookin at brent at that time, where it went from around 90 to above 130 at some point within two weeks.

How to play it cool with the news?

Well, unless you have millions in the bank in a weak currency, you don't. But if you are into trading CFDs and you just want to trade through the news that may not affect you directly (or may) with a controlled risk, these are the options one may take in different scenarios:

- If there are conflicts around the world, and those are actually global or threatening a large territory - or just all over the press, then the safe-haven strategy could be useful. Like when Iran threatened to start a war, or when Russia threatened Europe, you will see that Gold prices usually surge during this time. Moreover, people like to invest in the safer currencies as CHF as we talked about earlier, but also in JPY as well, as Japan has a solid economy.

- Political events and a crazy market. The word crazy is just used to emphasize volatility that is usually stronger than usual, and we saw it during the elections when GPB/USD and EUR/USD was moving quite robust. The same increased volatility comes into play when the news sanctions get announced, and this modern times, the tariffs set by Trump shaken the whole market overall - paired with an April Non-farm payroll mostfly for USD related pairs.

- When tension gets too high, as the tech market of China. If US-China Tech war escalates, this may actually distrupt a lot of aspects, and stocks of tech companies would definitely react to it.

What to do:

What you have to do is monitor the news and you can also read insights on what do experts say about what's gonna happen, but be objective and don't shift the narrative to your illusory advantage. It's important to be fair even if your "team" is loosing and the prices are about do go down despite your hopes for profitable longs, work with facts, not with emotions or your expectations of the pair.

Always make sure to maintain proper risk management - especially when you trading news, because it may just sweep you if you are not paying attention, therefore, make sure to risk proper amounts and always use stop-loss and TP in your trades.

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

What advice can you give me for trading?

We are on a journey towards successful trading and hopefully each lesson would be a cobblestone which will make up a whole path towards the bright future with proper trading. Today I would be sharing some tips about strategies and trading in general that will hopefully help not only beginners, but also people will experience as well, as there is just no perfection in trading, you can learn something new everyday, and getting 1% better needs to be out motto. Not fast and huge result, this is not casino - but slowly and disciplined, and regularly.

1. If you are a beginner, work with a demo account

Disclaimer: non-beginners can also work with a demo account for two reasons mainly: First, is when you are trying out a new broker and you want to test it out before depositing real funds, this can allow you to get a taste of what trading here looks like. Second, if when you are trying out a new strategy but it's still raw and you don't want to loose real funds on it, so you can open a demo and refine it and see the perspectives and if it works, then you can start integrating it into your trading system.

For a beginner, that would be a good thing, because it gives you an idea of what trading is. Of course you may know the basics and all, but trading itself on practise is something very different, and in my opinion, a wise thing would be to actually devote at least one month to trading on demo, and do it every day of the working week, and you will see how the price moves. Then you need to learn the types of execution, if it's intant or delayed orders, and how the stop-loss nad take-profit works, becase these are just absolute basics that are used by all the traders around the world.

The main idea here - is to actually submerge in the environment of practical trading and learn to take responsibiltiy for the losses and profit, treat it like his own funds.

2. Trade what you have in mind.

Some people get into trading because they want to trade stocks of major companies, the other want to trade currenices and some people may want to trade gold, silver, etc. What I mean is that if you want to trade some asset, trade it. This sounds satiric, but it's not, I am saying this because beginners read some articles about some crypto pairs or some other things being super profitable, but they don't know that it's written from their perspective. These assets have their own unique treats, as opening hours, volatiliy and else. Don't go for the advices of others who recommend some exotic stuff to trade if you have something in mind - just trade what you want.

If you don't know what you want to trade, the recommendation would be to trade something that has a lot of resources about itself, and super popular. That would be currency pairs as EUR/USD, GBP/USD (major forex) or some indices as SnP500. I'm no saying that these pairs give you more profit than the rest, because they don't, but their popularity has made learning them a bit easier than let's say, bonds.

3. Trading the trend
I know it's easier said than done, and yet it demands the understanding of the trend, the levels and trendlines and else, but the idea is not about the strategy, it's about your mindset. Trading against the trend has to be the biggest source of losses in trading, becasue it's in the human nature to earn a lot of profits and catch a reversal. They tell you the market moves in waves, and it is right indeed, but do not expect a reversal - when it happens, it happens. Do not counter-trade, this is the worst you can do in the beginning or in the middle of your journey, and in the end... well would understand then. You can learn to use some indicators, and they would appear hopefully in future lessons - but just make sure you understand the basic principles of a trend. The market can begin to go up and up, and then your mind may trick you into thinking - be the first to catch the reversal, you will best everyone and get the most profit and enter a countertrend trading. This is done without any confirmation and often leads to loss because the market doesn't move as you want.
4. Setting up SL and TP.
I have probably talked about this enough throughout my other answers to questions, but just to emphasize - this is important. Stop-Loss is your guarantee that you will not losse more money in a bad scenario the you have planned to, and while opening any trade, be sure to be able to loose it, only then you can appreciate the profit. Also, when setting up Take-profit, it's important to be realistic, and you cannot just put out a 400 pips TP to EUR/USD that rarely moves 100 a day, and 400 upwards may take like 3 months.. so be subtle, and I think the best pips goal for the day is no more than 30, and volume beats everything in the end.
5. Limit your trades
Yes, you may think that you need to open as much trades as you can while you are learning, but this would just turn your trading into gambling, and when overtrading begins, real trading leaves the room. Most people overtrade because it seems to them like they are missing out and they have to grab EVERY chance that they see. If they spot 2 potential moves in the market and one may be 60% probability and the other is 10%, they take both and end up at 0 because one plays out and the other doesn't. So limit the number of trades that you can take in a week, and then take them accordingly, and it doens't mean that you HAVE to make a certain number of trades, just take the chances that align with your trading strategy.
6. Education is key, keep pursuing it.
The most important thing for a beginner to do would be to keep educating himself, and once you have found a legit resource, then keep learning, and be disciplined in it. When you learn new things, always try to test them and refine them, back to the square one - going them on demo.
Another great method is to keep a trading journal - EVERY trade you take, take a screen of it and save it and put a little describtion. This would be important once you have enough data.
Nothing here is investment advice, either on the landing page or the Terms of Service page. Don't follow anything without thoroughly researching it.

You might be surprised that this thread already has a healthy amount of answers, but those are not enough. When I coursed through some of them, I could see some legit ones and some made up ones, and most of them didn't have actual advices to fix the issues. Knowing that you made a mistake is only half of the matter, actually fixing the mistake is much more important, so this why I would compose an article on several mistakes beginner traders make, and how to fix them!

 Starting with no Plan

And I mean starting with a real account, because naturally, you will not have any plan in the beginning and might open a demo to play around and see what trading is, and how assets behave, just testing the waters. No issue in that, however, if you keep on with the same attitude in real account, you are going to be diappointed soon enough, because market doesn't really care. Going real trading with no plan is the same with going to war with no equipment and with your bare hands, and chances are... slim to none. You gotta have a solid plan, and it's okay if it doesn't work in the beginning, at least you are walking a clear path.

What you need to do here is:

- Create a trading plan. Duh... but seriosuly, there are a lot of materials on how to do that, and the plan need to have clear risk management, like precicely how much you can afford to loose on a trade. This needs to be like: "1% risk of overall capital on a trade". Your goals need to be there as well, like "2% Take profit". Moreover, you have to have portfolio of assets you are going to trade, all needs to be emphasized there. Write it down, make cards, do a word document or PPTX - your choice, but have the plan. Follow the plan, and this is important, but we will discuss is a bit later. What's important to understand is that no plan is perfect from the beginning, and even if it takes a lot of tweaks along the road, it would be worth it. Always take notes on where you can adjust your plan, based on collective evidence of your trading.

2) Playing with leverage

There is something called overleveraging, and this is super danegrous. What beginners may learn about leverage in the beginning could be just marketing of some brokers, as they offer 1000s or even more, saying you can have super apmlified profit. True - but what they don't usuallly say is that the risk of losses rise in the same amount, so you need to be super careful and avoid brokers which don't offer balanced leverage.

Here you can see the example of balanced leverage, not too much - but 1:400 on forex majors like EUR/USD. On fore minors, you have less levearge, like 1:200 on EURSEK and the more exotic the pair is - the less leverage you got. Exotic pairs like EURTRY have only 1:5 leverage, and this is because these exotic pairs are less liquid.

To fix this: you need to learn thoroughly - what is leverage and how does it work. Once you realize it's not a magic trick that will make you earn millons overnight, you are probably ready to roll. Plus, risk needs to be taken into account here, becasue 1;400 can still be a high leverage if you risk like 20% of your whole capital on a single trade, and this will not end well if you don't know what you are doing. As discussed earlier, a good idea would be not to risk more than 2% of your capital on a single trade, despite it's odds or anything. Plus, to make sure you don't get swept in a bad scenario - always put stop loss on your trades, this is not a recommendation, it's an ORDER!.

3) RIsk Management

Well to be more specific, it's total absence. When you are a beginner, you might be under the impression is that you gotta earn 100x more than you loose, and you need to make millions overnight right from the start because forex is profitable. Though the last part can be true, it's only profitable if you know what you are doing. Often beginners put too high TP's like 1;10RR on intraday trade, or 1:20 or even more, and this is just not realistic, and rarely going to work, unless you caught a super clean reversal on scalping, which I don't recommend beginners at all. Even in scalping, 1:10RR is super rare, let alone in intraday trading.

What can you do here? Make sure Risk-Reward ratios are reasonable, and this is how it looks. 1:1 - 1:2, and other ratios in this this zone. If you think it's too little for trading, then you are walking in the wrong direction. If you always do 1:1, it means you need to have positive winrate to be profitable, and this is only achieved by skill.

4) Trading too much

Sometimes you feel like chances are slipping away and you are loosing something in each asset. You fly like moth to any source of light you can see, even if it's too risky, and you open trades left and right, and end up loosing majority of your trades. Overtrading comes together with FOMO, anger, frustration and all those negative feelings that make your trading journey suck, no other way of putting it. The flipside is even worse, if you end up winning some trades, you might get too cocky and overtrade, and loose all your money. This is something that happened to me, and it was hard to get over it, so don't even get into this.

You need to get rid of greed and fear for this one. I am not saying be fearles and take any trade you wish, no. Make your analysis, and if you are sure about the setup, open it. When you have trade running, focus on that one, and don't be going for low quality trades just because you might miss out, only work with facts on the market, and fact is the price. If you feel like it's ovewhelming, just take a chill pill, close the chart and go do something, take a break from trading, undertsand that you gotta take control over your emotions to be profitable, as there is no other way around it.

Also, keep a journal - this is a pretty important thing to do, every trade you take - make a record of it in your journal, this would be super imporant after you gather enough data. When you have enough data in the future, you will have records of all your trades, and you would be able to see the stats. You might underrsand your weak points and improve your skills, and this is how you get better in trading.

As we are on the topic of emotions right now, trading is like battling yourself, your mind wanders and says there are opportunities you are missing, but you have to work from logical perspective only and rely on facts. It's like a battle with yourself, and when you win it, this is the way towards profitable and successful trading. A trader always needs to keep learning and keep improving.

Last but not least, chill, it's just trading, it's not the end of the world, nor the start, don't take it too personal, when you loose, it's part of the journey, when you win - be grateful and remain cautious.

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

This question is actually popular among those who want to start trading and still not sure if it's just a new fancy name for gambling. But let's think about it for a minute - what you would classify as gambling? Merriam-Webster explanation "the practice of risking money or other stakes in a game or bet". However, trading is neither a game or a match, why does it get compared to gambling? Well, first of all, it's people who have no idea about BOTH trading and gambling who do these kind of comparions, just to create a feud, or driven by other personal interests. Traading is like investing, people spend a lot of time in front of the chart gathering live data and looking at history, at news around the company and utilizing indicators and other analytical tools to make an accurate forecast of what's going to happen. But tell me know, how would you analyze what's going to be next on a roulette wheel, red or black? You cannot, and this is what makes it gambling, because you have little to absolutely no idea on what's going to happen.

However, if you trade CFD without any causion and taking extreme risks, it can surely turn into something that resembles gambling, and these could be the similarities:

* Playing with leverage

From the young age, people are taught not to play with fire, and traders are taught not to play with leverage. People critize CFD brokers for offering too much leverage, like even 1:2000 or more, and this could amplify the losses by a lot. It's a blessing that quickly turns into a curse if you have no idea what you are doing, and alike gambling, the money can be lost pretty quickly. But what if you win? It's not a decent trade anyway, if you show your gamble trade to any pro trader, he will surely tell you that you shouldn't have done it.

* Ultra-scalpers

Short term speculations exist in trading as well, like opening and closing a trade even withing seconds, and some people do employ these strategies to get huge RRs. But the reality is that most of them prolly have 20% winrate, or maybe 10% (if they are hunting 10RRs or above) and this is mostly just not worth it. Also, keep in mind that these are from the top of my head, but effective scalping is mostly done by super experienced traders, and even those people loose in the long term with scalping.

* You don't own anything

This was an interesting argument I saw the other day that compares trading CFDs to gambling, as in both of these spheres, you don't own a thing. True, however, there is a reason why you don't own the assets while trading CFDs - it's a method of simplyfing trading, because some brokers offer a lot of different stocks to trade, like EU, UAE, Chinese, US and other types of stocks. You can't imagine the heachades you need to go through to own those, and each exchange has its own rules, and plus you will get 1:2 leverage max on those, so it means you need a pretty much gigantic capital to make money. For instance, if you make 10% a month on shares, which is not an easy thing to do - then you need 10K capital at 1:1 leverage, not many people have 10k lying around just for trading. However, with balanced leverage (1:20), you need only $500 to hold a 10k trade, which is still not adviced, don't risk all of your equity for a single trade and comparison is just for informative purposes only.

Now let's look at what makes trading different from gambling:

- Skill matters

Those who make decent predictions by properly analyzing the market did spend quite some time learning, and they have the skills to make decent assumptions. Skill does matter here, while gabmlers rely on luck, traders use technical analysis (indicators and chart patterns based on historical data), fundamental analysis (economic news and press around the company for shares) and risk management (setting up proper stop loss and take profit). When you make a bet, you loose all of your money, but in trading, you put a Stop Loss that will stop the trade once the price reaches a certain amount.

- Risk management

To expland this a little more, in trading, you controll the process, you see the price moving either in your direction or away from it. You still have the full control to set TP anywhere you want, and the same with SL, and you can stop the trade any time you want. A proper trader risks no more than 2.5% of his total equity (mostly 1% tho) on a trade, generally it's a sum he is well prepared to loose.

- Loosing is different

When you loose at gambling, what people tell you? Better luck next time, and it's hard to realize that you can only rely on luck. There are losses in trading, sure, but those are disciplined, and at a decent risk as we discussed above, and experienced traders record their losses to review them once they have enough data, so they can reveal their wekanesses and work on mistakes and improve their trading stats.

So when exactly trading becomes gambling, this happens if you:

1) Trade without a plan ( a strategy)

2) Don't use any risk management (YOLO style)

3) Get consumed by emotions (overtrade, revenge trade, fomo and all the rest).

In the end, what I wanna say is that you give a knife to an amateur, he may cut himself, but if you give it to a cook, he can make a nice meal. So trading is a tool, and the tool is all about usage - if you use trading CFDs properly and have a strategy that you follow, then there is absolutely 0 similarities between trading CFDs and gambling.

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

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.

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