10 Best Stock Trading Myths

Brace yourselves for the Best Stock Trading Myths. My idea to talk about these myths came to me after I got an email from someone who was convinced he could quit their job because (a particular stock market guru) made day trading look easy. Let’s cut to the chase. Trading isn’t easy. 90% of traders fail and 80% of day traders quit within 2 years. That number alone should raise a red flag but I know it’s not enough. With that said let’s go over the best stock trading myths that I have come across in the last 4 years.

Front Running

There are a lot of stock market gurus who front run their students and make it look like trading is easy. What is Front running? Front running is the unethical practice of a stock market guru trading a stock before their subscribers and immediately alerting them to their new position. Then once there is a pop in the stock price the guru exits his or her position and then alerts their subscribers.

This practice is not only unethical but catastrophic to the subscribers. Those who exit quickly might make a profit but exiting a stock when many people are trying to do the same thing is like running for the exit after someone screams fire. Some people might get lucky and exit without getting hurt but most will get trampled and killed on the way out.

Tip – If you suspect your stock market guru is front running stocks then change your trading plan to protect your capital.

Learn more about Front Running

You Can Day Trade Successfully with a 9 to 5 Job

One of the best stock trading myths that I see being used again again is this one. No you can’t day trade successfully with a 9 to 5 job unless you live in a time zone where you can trade the market without overlapping your 9 to 5 job schedule. Don’t you get it? You have a job that needs you to be totally alert for 8 hours and even if you try to ignore your job during those hours you will have your attention split no matter how good you think your trading can be.

Let’s look at it this way. Imagine you are going in for major surgery and you find out right before you are about to be anesthetized that your surgeon has another (unrelated) job to do during your surgery hours. How do you think you will feel? I don’t know about you but get me the hell off of the gurney I want to go home.

Tip – Swing trading or options trading is a great alternative.

Learn to Trade Without Doing Any Market Research

Wait, what? Do you really think you should start investing your money with a stock market guru who claims you can learn how to trade without doing any market research?

Why would you even consider doing that? That’s like trying to learn how to play professional baseball without buying a baseball glove.

Out of the 10 best stock market myths I am writing about this one should be pretty obvious but people fall for it all the time. You need to do market research. PERIOD!

You need to know why the stock is in play, you need to know if it’s a buyout, contract win or earnings beat.

Not knowing those things before placing a trade is just dumb. Don’t fall for it. If you want to learn how to trade assume you will need to learn how to do some form of market research. You don’t need to be an expert you just need to know what is going on.

Tip – Learn market research to advance your trading ability. You can benefit greatly from knowing exactly what is going on in the market.

Here is a free stock market tool to help you get started with market research.

The Low Float Gap & Go Strategy is Easy

If you are a new trader and some guru tells you that trading the gap and go strategy on a low float stock is easy run for the hills.

Gap & Go is a trading strategy where stocks “Gap” up in the pre market and potentially “Go” higher right as the market opens.

A low float stock is a stock that has very little retail shares to trade. To learn more about low float stock read this.

Out of the best stock trading myths this one is the most aggressively dangerous.

Imagine you are at a soup kitchen with 500 people and you find out that there are only 50 plates of food left. How do you think people will react when they find out that they might not eat?

Trading a low float stock using the gap and go strategy is beyond risky. It is plain stupid for the beginner.

Tip – Don’t trade low float stocks until you have proven to yourself to be consistently profitable.

Learn How I Made $100,000.00 In Verified Profits

99% of all stock market gurus are not sharing real verified profits. If you find your guru is showing you videos or screenshots of their verified profits you are being duped.

The only true way to show real profits that are legitimately verified is through a 3rd party source. That is it.

You might not care if their profits are verified or not and that is fine if you are ok with it. However, when a stock market guru claims to have verified profits and all you see are screenshots, videos and phony broker statements you are being had.

Tip – Email your stock market guru to verify their profits. Even though they won’t do it watch how they try their best to avoid that topic.

Hurry This is the Last Time Prices Will Be This Low

When it comes to stock trading myths categorize this one under best marketing.

In 4 years every stock market guru who I have watched has discounted prices all the time. In fact if you are just dying to be a part of a particular stock market community I can guarantee you that you can get a discount anytime of year. All you have to do is ask.

If asking doesn’t work then you can tell them you are not interested and miraculously prices will drop “just for you… just this one time”. If for some reason that doesn’t work just wait for any holiday and they will be lower again.

All of these stock market gurus who use emotionally driven words, such as hurry, act now and don’t wait are marketing to you. And because most people have to deal with greed and fear you might fall for it depending on where you are in your financial life.

Tip – If you missed a sale wait and it will return. Guaranteed.

Turn $1500 into Millions

I wrote an article a couple of years ago on the top 20 trading secrets. In one of the sections I wrote:

You cannot make millions from $1500 when you start out trading stocks. You just can’t. Don’t think it, don’t try it and don’t waste your time trying to do it. Yes it’s possible You hit a long shot and get lucky in a super speculative stock and make a decent amount of money and yes I am sure we can find 1, 2 or 100 people who say they turned $1500 into millions in the stock market but out of the 7.125 billion people in the world there is a 99.9999986% chance You can’t.

You could say Tim Grittani did it and, even though he is a super talented trader, that wouldn’t be true. You could say Ed Martin – Average Joe Trader did it but we debunked that myth too when he gave me the financial facts during our interview earlier this year. You could say Doyle Roberts did it when he said he could teach people “How To Turn $1,000 to $5 Million in 12 Months” but when I went to his website it was completely removed.

Tip – Focus on You. Worry about yourself and how you are going to turn your money into more money.

Free Special Webinar (481/500) Spots Already Filled

The best stock trading myths cater to your emotions. There is no special webinar. There are always 481 (or a number close to 500) spots already filled. It’s only free until the pre recorded bland webinar with unlimited spaces ends. Then you have to pay to be a part of the special community.

Remember 90% of traders fail so the only thing that is special is your money you don’t waste on deceit.

Try this. Whenever you see something similar to free special webinar 481/500 spots already filled I want you to take a screenshot. Then in a day take another and then another. Then join the webinar and refresh the page again. You will notice that nothing has changed.

As you sit in the webinar with the other 481 people (yeah right) I want you to ask specific questions to the stock market guru that can only be answered in real time. If you don’t get an answer it’s a recording. If you do get an answer and you believe it’s real watch what the others are saying. Are they real?

You might be shocked to find out it’s all a set up to get YOU to buy their service.

Tip – Keep refreshing the page and watch the best stock trading tricksters keep those seats close to being filled.

5 Star Review

Many reviews are bought, some are requested by strategic members of a room and some are removed to solidify a higher review rating. There is no way to tell for sure but when you see stock market gurus flaunting their 5 star reviews you must be careful. Remember 90% of traders fail and 80% quit within 2 years.

Are these 5 star rating individuals still around? If so can you speak to them?

I am still around. People email me a few times a week to pick my brain. However I am only 1 of many people so who else, besides me, can you fall back on and ask? Probably not too many.

Tip – Read the 2, 3 and 4 star reviews. 1 star reviews tell you the world sucks and 5 tell you their are unicorns in the air.

I’ll Teach You How My Portfolio is Up 2145% This Year

Let’s take a second to think about this because this is one of the best stock trading myths that will fool many people and crush their accounts at the same time.

Let’s assume your stock market guru was up only 500% on the year. That would mean that he (or she) would be mega rich and on every news station in the financial world. However, you never see them on air because it’s just not true. If it were true they would also be getting calls from Warren Buffet, George Soros, and Jack Bogle.

I have even seen some gurus claim to have a portfolio up 8000% on the year. On a $1,000,000.00 account your stock market guru would have $80,000,000.00.

Do you really think they need an extra $197 a month subscription fee to show you how to do the same thing or are you being taken for a ride?

Varoom…

Tip – Once again focus on your portfolio. If you can maintain a 10% to 20% increase on your portfolio you should be proud.

Final Thoughts

I am sure I could have added more of the best stock trading myths but for now these are the ones that stick out the most. To be clear 90% of the stock market gurus that I see all over the internet are liars, cheats and crooks. Even the people who seem sincere can be out to get you. In fact, those are usually the worst ones.

Gurus are selling subscriptions for financial gain and nothing more. They don’t care about you or your situation. It’s not a bad thing to join a service as long as you are in control of your trading and not relying on their market calls. I am a member of Investors Underground and I love it there. I look at the stocks that are in play for the day and I set up my own watch list daily and trade accordingly.

My advice to you is try a trial period of some kind if you really believe in the person you are evaluating. That way you gain access to them one on one without making a huge financial commitment. During that time I would stay away from trading so you can really delve into seeing if this person is legit or if they are one of the ones who should be added to the list of the best stock trading.

Save



Save

Disclosure:

Some of the links in this post are from my sponsors. I thought you should know because honesty is better then sugarcoated bullsh*t.

Important Resources

  • Read my frequently asked questions or if you need personal 1 on 1 guidance from me on how to fully prepare as well as protect yourself from the misrepresentation please click here.
  • Every month I update this post here for my personal "Millionaire Challenge". I suggest you read the entire post and when you reach the bottom you can see my updated progress.
  • I highly recommend the Simple Path to Wealth book to grow Your wealth simply and steadily. It will educate you beyond your financial imagination. This is my review of the book.
  • If you are new to stock trading test your knowledge here with a basic stock market quiz.
  • There are a lot of secrets in trading stocks and I reveal 20 of them in this popular post.
  • If you are confused about short selling stocks then read this simple explanation that will clear it all up.
  • This free stock research tool will give you all the necessary information on any stock you type into the search bar.
  • Do your best to avoid day trading distractions. Especially the 10 I list here.
Shares