E- Trading is also known as electronic trading and is a method to trade stocks, bonds, foreign exchange, financial derivatives or currencies electronically. Information Technology is used to bring all types of stock traders together on a singular online platform. Electronic trading has completely revolutionized the world of stock trading with respect to many aspects, like it had made it more convenient, moreover real time processing makes it very quick and spontaneous. There are many virtual market places which are playing a big role in enhancing the world of electronic trading. Some of these are NASDAQ, NAYSE Arca and Globex, which are also known as Electronic Communication Networks (ECNs). Along with this, there are also some myths about electronic trading. Let me shed some light over the top five myths.
The most famous and the widest grown myth about E- Trading consider it as the mine of gold that will make you rich in the shortest period of time. Here, we would disappoint you a little, nothing can make you rich over night. Every big success comes with a lot of hard work, patience and sincere dedication. Above all for getting a big success you must keep patience and be patient. Most of the top successful people of the world had to suffer a lot of difficulties and losses before ruling over the world.
“The cleverer you are with your decisions the more successful you will be”
Now, this myth is a half true but not fully explained. The clever decisions in business are those who are made after thinking long and easy about it. Especially in E- Trading, once the deal is done you can only undo it with a big loss.
“You can be right every time”. This is an over confident myth about E- Trading, nobody knows the future and nobody can predict the market issues 100 % right. No matter how expert and experienced you are, you always need to be careful while investing assets in the- Trading deal or your overconfidence will get you nothing but regrets.
Another myth in air about electronic trading is that it is gambling but the reality is entirely in contrast. The gambling totally depends on your luck but E- Trading depends on luck with effort where sometimes luck wins sometimes efforts. So, never lose hope when you are feeling unlucky. Make steady and wise decisions and hope for the best always.
E- trading’s Last myth is actually not a myth but a reality and it is that electronic trading is risky and yes it is. Could you even cite any one example of a business that guarantees you a substantial profit? So the risk is always there. You must remember that if taking risk gets you nothing in the end it will give a lesson worth learning. “Risk it to take a biscuit” and stay positive.
These myths may be half true half false, but a trader should never rely on such myths instead he should create some facts to be followed.