What is some misconception that people have about trading?admin - May 14, 2021
In this article, we will discuss some misconceptions that people have about trading are.Also, we will discuss what is called trade and how is it done.
What is called trade?
Trade means the transfer of goods that takes place between one person to another.Trade nowadays is made using money that is goods are exchanged for money.The earlier stage of trading was called the gift economy, where you trade items without expecting anything.This kind of trade was stopped due to many rich people cheating and stealing from the poor.
Then in the Stone Age, people used to trade goods for Obsidian and flint, two of the most used materials.Then when the world was evolving, there was the invention of something called currency.This means that there was the creation of something that had value to be exchanged for.
Then people would use this thing called currency or money to buy the goods that they want.This concept was introduced or first made during 650 – 600 BC.After which, there were only coins called mints used to trade for goods from traders.
But later everything changed and nowadays trading is done by taking shares of a company.This means you will buy a part of the company for yourself and go with anything they are facing.
What are some misconceptions about trading?
Here is the list of some misconceptions that people are having about trade.
- Trading is about making quick money
This is not true in any way as in trading you have to very patient and use your mind. It is because trading is a thing that might double or triple the money you have invested in a company.This will happen only if you use your brain and then make your move slowly and patiently.
- You need to be a math wizard for trading
There is no such thing as you need to be a wizard in math as trading is a mind game.Here you will have to use your brain, analyze the market and then take the shares.
- All the professionals are day traders
The professionals are not truly day traders as they trade together with other people also.This means that once a person is trained and knows the share market, they only need an hour or two.
- You need a huge amount of money for trading
This is not true as trading can be done with a very small amount also.It is because every share in the market has a low piece which almost anyone can afford in the market at https://www.webull.com/quote/rankgainer.