Stock exchange

Mythbusting the biggest myths about financial markets trading

Trading on the financial markets has long held a huge appeal in the eyes of the public. By some, it is seen as an exciting way of potentially making a fortune, but does it work in the way that a lot of people think it does?

The truth is that there are some common myths about trading that too many people believe. The following are some of the most common, and why they’re untrue.

Traders need to be in the trading room

Do you think that you need to be standing in the Australian Securities Exchange building in Sydney in order to trade? If so, you aren’t alone, as many people think that trading has to be done in the same physical building as other investors.

This isn’t the case at all, as you can trade from virtually anywhere as long as you have an internet connection – or you can even phone a broker. In fact, there are plenty of people who now trade from their homes.

Every part of the transaction can now be carried out speedily and conveniently from virtually anywhere. In some cases, this can be done round the clock too, so there is a great deal of flexibility in how to approach it.

It is only possible to trade stock

Most people are aware of stock market trading, as it has been shown extensively in movies and in television shows. This isn’t the only way of trying to make money on the financial markets, though.

For example, new investors could also look at the possibility of getting involved in forex and CFDs online trading in Australia online, where over 185,000 clients invest on a worldwide basis. This approach lets you trade on a pair of currencies like the Australian Dollar against the US Dollar, and how their rate is going to change.

It is also possible to trade in commodities such as gold or silver, crude oil or agricultural produce. Each type of investment has its own level of risk and possible reward to take into account.

Only rich people can do it

Another common misconception is that only people with a lot of spare money can afford to get involved with trading. This perhaps comes down to the false belief that it is similar to a high-stakes game of gambling.

However, there are now more people from different walks of life trading than ever before. This is because it is possible to get started with a modest sum of money and invest in less risky ventures such as blue chip stocks.

Of course, it is important to understand that each type of financial trading is right for a certain type of investor, and not for everyone.

Traders need to study for years

It is easy to think that only someone who has studied the financial markets for years can invest with confidence. Certainly, having more confidence in your skills and ability to read the markets can be a big help in making the right decisions.

Yet, there is enough investing information and help on the internet to ensure that even a complete beginner can get started smoothly. There are even practice accounts, which simulate trading without the need for financial investment, for those who want to see how it works first.

If you aspire to try the financial markets, there is nothing to stop you from doing so. Perhaps the idea that only certain people can invest in this way is the biggest myth of all, as it is something that anyone be successful at if they go about it in the right way.

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