We live in a digital age where anyone with access to the internet can gain knowledge and information whenever and wherever they are. Unfortunately, there’s a lot of misinformation out there. 

 From “trading is like gambling” to “you need a lot of money to start”, many myths and misconceptions exist about the world of online trading. 

A good place to start your journey in online trading is to partner with a regulated and licensed broker, such as CMTrading. 

Tope Ijibadejo, CMTrading Nigeria Region Manager, busts some of the top trading myths. 

Top 5 trading myths busted: 

1. You need a lot of money to trade 
“You don’t need lot of money to trade. What you need is knowledge. What you need is a lot of skill, emotional intelligence, and zeal. At CMTrading we have people who started trading with $100 and they are trading five digits in US dollars. This was achieved from a three-digit account. 

“You don’t need a lot of money. Money is only one aspect. You need knowledge, you need to work on your trading with discipline and the zeal required to be successful.”  

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2. Trading is gambling 
“Trading is strategic and scientific. Gambling is not methodical, it’s just a thing of the mind. It’s based on belief. You’re not using applied techniques. For instance, when the Russia-Ukraine war started, traders knew that the price of food and oil will rise because Russia is the second-largest exporter of crude oil and Ukraine is also a major supplier of oil and wheat. Traders anticipated scarcity. This is methodical and scientific. This is a knowledge base that allows for taking strategic positions and making a profit.  

“That’s not gambling, there is a lot of knowledge being applied. People who gamble are people who do not have knowledge. Some trading strategies can be considered gambling because there is little to no knowledge. No experience or strategy is being applied. Some people just see the market rising and they buy without finding out why the market is rising. They don’t bother discovering the fundamentals. They don’t look at the sentiment of investors before they place their trades. These people are gamblers.  

“Overall, trading is strategic, it’s systematic and you can win as many times as possible in the markets if you are applying knowledge and tested systems.” 

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3. You need a business degree to trade 
“You don’t need a business degree to trade. What you need is an open mind to learn new things and ultimately understand how financial markets work. You need to understand the concept of supply and demand and to understand what investors look at before they put money in the market. If you can do this you will make a lot of money for yourself with online trading.” 

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4. It’s not easy to trade online by yourself 
“It’s easy to trade online by yourself once you have a smartphone or a laptop connected to the Internet, you can access the markets for yourself. What is also important is having knowledge and experience in trading. What will also be of great assistance is the right technology to assist you in trading online.  

“Knowledge is power; with the knowledge, you can make the right decisions in the market. Ultimately, you’re either buying or selling and you do this based on knowledge. Having sufficient training will make this easy for you to do this yourself. Even if you don’t have the knowledge, with CMTrading you can access professional trading signals. We also use social trading, whereby you can copy the trades of professionals. It is very easy to start making your financial dreams come true.” 

5. What goes down will eventually go up 
“This is true to some extent, but do not go into the market with that ideology. We have seen assets that were down and never came back up for ten years in the markets. The idea is to know what to do and understand the concept of supply and demand. As demand keeps increasing, the price will keep increasing. If demand drops, the price decreases so what goes up will come down. You need to understand what’s driving the markets. It’s possible that what goes up may not come down for a very long time.” 

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