Common Misconceptions of New Traders are:
They think...
** They can trade consistently with an 80% accuracy
** They can turn $1000 into $100,000 in six months
** They can predict turning points in their given markets
to within minutes.
** They can buy a system that is 100% accurate.
** They can quit their jobs and make a living full time
after a few months of trading.
What's the reason that so many new traders believe
that trading is an easy way to make big profits?
Propaganda!
We are continually bombarded in magazines, emails and the general media with claims of making astronomical amounts, just by applying the vendor's latest method or system.
People fail at any business if they approach it without an appreciation and understanding of what is required for success. The majority of traders fail because they have no such appreciation and they have unrealistic expectations of themselves.
Any trader who starts with the expectation of becoming an instant success is setting himself up for failure. No one would decide to become a golf pro and assume that they could just pick up a bag of clubs and start winning tournaments. Yet novice traders do this all the time.
