In spite of the hype and the success stories circulating around about investing and trading, a lot of people still don’t want to try trading.
If you’re going to ask a person if he thinks trading can give him a lot of money, he will say yes. But if you ask him if he would like to actually try trading, he will scratch his head and if he is honest, he would say no.
Let’s dig deeper and know why people are scared of trading.
They think it’s gambling
Gambling and trading has a lot similarities—but they also have greater differences according to Platform Review and HQBroker Review. Unfortunately, many people think they’re one and the same, the other having only a fancier name.
People think that there’s no sure-ball way to earn money in trading and that they’d be betting on something uncertain. In fact, they’re right. However, they’re also wrong.
Trading requires not only betting but also a methodical and systematic approach. This means that traders do not act on instinct alone. Gamblers, on the other hand, can devise some system or methods to beat the opponent, but there’s no universal rule for gambling. If you win, you win because of your luck. Traders win because of thorough analysis, systematic strategy, and discipline.
They think it costs a lot
Another stronger reason why people let trading go is that they think their wallets and paychecks can’t afford it. This is only a little more valid than the first assumption.
If you are trading, the amount of initial capital you have to spend can vary depending on what asset you want to trade and what account type you want to trade on. Not all of them are cheap, but not all of them are expensive either.
Minimum deposits can cost around $0 to a couple hundreds of thousand dollar.
The good news is that you don’t need to be uber-rich to start trading. You can save some decent amount of money and find a firm with the most ideal rate for you. And voila! You have your own account. First, try to read more about different trading accounts.
They Know People who Lost Money in Trading
Social proofing is a very powerful undertaking. Now, when a person sees a trader or a group of traders earning a lot in trading, he or she will very likely join them. However, traders who earn a lot do not go around claiming they made a fortune out of the market.
What people more often see are other people who tried trading and failed. Their failure can be caused by a number of various reasons, and even if the reasons do not really dent the image of trading, in the eye of the spectator that trader lost his money because of trading.
Traders to earn from trading are busy trying to maintain their earnings and polish their portfolios. And usually, these people have higher target earnings than non-traders. This means that what they earned may already be high for a non-trader, but for them it’s still a trifle small.
Trading is for everybody and it’s totally okay to not trade if you don’t want to or if it’s way beyond you. However, instead of looking for reasons and excuses not to trade, why not look into the more pleasant possibility of earning from it? Trading should not be feared. Instead, you should think about it as a potential source of fortune.