Trading Truth

Trading Myths and Real Truth

Have you ever come across some trading myths and real truth about the stock market? We will discuss about this here. Always remember that if you believe in thes myths which are followed by the bulk of traders, it would restrict your chances in making significant trading profits. You should however be aware of the stock market if you wish to invest your money. There are at least ninety percent people who believe the myths and this is the reason why we see ninety percent of the people are not successful in trading profits in the Indian stock market.

Be in the market even if you miss a move
You are quite familiar that traders love excitement and according to their view they might catch the big move if they are in the market. But originally speaking, there are no chances in this case. So you should stay out of the market until they come otherwise you would end up losing all your hard earned cash. So, you should have patience.

Diversification reduces risk
You should have high confidence in order to go for the big moves. As you know that stock trading is all about calculating risks, so you need to hit it hard in order to make big profits. Diversification simply dilutes your profit in the market.

Day Trading is much better than long term trading as it is less risky.
There are many brokers who believe in the myth that day trading is much better and are less risky. So if you tend to believe it then they would make morecommission. So long term trading is much safer than day trading as say trading is good for short term investment. So, you should be fully aware of this.

Timing the Market
There is another myth that timing the market is the correct way in order to make good profits. But this is very wrong. This means that you are trying to predict the market and this is not at all a good way to trade.Please note market can never be predicated not it can be only stick to technical analyses. Never make guesses in the market as to make regular profit out of Indian stock market you need to stick with proper research.

So, you have come to know about the trading myths and real truth of the stock market.