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You’ve probably heard that you can earn a side income from trading online, but you might have heard some horror stories that happened to “a friend of a friend” too. Unfortunately, these myths make many aspiring traders apprehensive from dipping their toes into online trading, even though these myths hold very little truth.

With the help of Binomo, a trader can make trades on assets, make forecasts and get additional income, depending on the result of forecasts. We will debunk these old wives’ tales in simple English.

As usual, it is worth noting that online trading carries financial risk, just like any investment. Always be careful with your money and do not invest without understanding the potential downsides to your trades. 

Myth #1: Online trading platforms lack the human touch

Some people will tell you that online trading is a cold world based on logical algorithms that lack human decision-making. In reality, a good trading platform doesn’t leave its newbie traders to fend for themselves. Platforms like Binomo provide forthcoming online support round the clock. The same helpful staff help maintain Binomo’s platform not only with tried and tested software and coding, but also with sensible human judgement and experience. You are not alone out there. 

Myth #2: Online trading is less risky than trading through a full-service broker

If an online trading platform claims to “guarantee high income” or ensure “zero risk”, those are huge red flags—and you should run for the hills. Of course, all forms of trading come with risk. There isn’t necessarily more or less risk when you trade via a modern online platform and an old-school full-service broker. More importantly, be aware of the risks and set your parameters. A good online trading platform supports traders with proven algorithms, user-friendly functions and advanced tech, and will not leave out the human touch.

Myth #3: Online trading is only for professionals

Big banking institutions have been peddling this line for years—maybe because they would prefer you give them your money for a management fee, perhaps? The reality is, online trading platforms have opened an entire new opportunity for retail traders (people who invest with their own money) to access assets across the world like never before. We all start somewhere, and there are lots of useful online resources that will explain the basics to beginners. You can learn popular strategies here.

Myth #4: Online trading platforms are not secure

Before you begin, we can’t emphasise enough that you should trade via a legitimate and competent online trading platform. Besides the sure-in guarantees that are red flags, budding traders should also check a platform’s security measures and their accreditations. Are your transactions and personal data kept private? Is all this information kept securely on a decentralized platform? A safe platform is also likely to be transparent about its fees and processes. If something happens to your account, what regulatory authority can you contact to file a complaint?

Photo: Aidan Hancock

Myth #5: Online trading companies are fly-by-night scam companies

Yes, there have been companies that disappeared with their clients’ money, but don’t let a few bad apples spoil your perception of online trading. A simple way of separating the wheat from the darnel, is by looking for notable industry certifications and recognition by regulatory bodies. Binomo, for example, is regulated by The Financial Commission, an independent dispute resolution organization that specializes in financial markets. Binomo also underwent an audit by Verify My Trade (VMT) successfully and received a certificate of quality of trades, and is affiliated with CFD trading, a regulatory body which supervises the provision of financial services. Before making a commitment to any trading platform, it is important to thoroughly understand and review the organizations that are offering them certificates and regulation. Do your research, and make sure you are comfortable with the credentials of the company you are trading with. 

Myth #6: There is a one-style-fits-all approach to trading

Experienced traders and bona fide trading platforms will tell you that there are many paths to success. You might start out by following the well-known methods of self-professed “gurus” or communities online, but you should eventually develop your own style that matches your personality. Trade in a way that makes you feel confident and in control of your transactions.  Best of all, most platforms provide free demo accounts, which allows new users to practice trading, learn and improve, before they dive into real trading.

Myth #7: You can’t trade if you work

Is your full-time gig too hectic? Is your boss constantly hovering over you? There’s a misconception that you can’t trade if you work full-time, because you need to constantly monitor graphs and trends. In fact, there are many trading styles that don’t require you to remain glued to your screen. Read up about those trading styles, or if you prefer, watch explainer videos on YouTube. Modern trading platforms let you set your limitations and handle your trades for you, while you go about your daily routine. Enjoy peace of mind when you trade on Binomo, earn an extra income and gain professional trading skills.

If you would like to learn important trading terms and various trading strategies, visit Binomo’s website. As with all ventures, do your research, make measured investments and keep on the pulse of industry updates. This due diligence will help you separate fact from fiction and help give you clarity in decision-making.

Coconuts Media is not a financial company and doesn’t give financial advice. This article is a collaboration with Binomo and is meant for educational purposes only.

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