By Chux Odoh
Every day we go online, there are adverts selling online trading. There seem to be several bits of advice from various experts, and it can get a bit confusing people with little or no knowledge of the business.
In Nigeria especially, there are so many misconceptions about online trading, options trading and brokers that it’s really hard for people to know what is true or false and which trading platforms to sign up with.
Recently, global trading platform, Binomo, signed Nigerian footballer Victor Moses as their ambassador for Africa, and this got a lot of Nigerian to pay attention and get more interested in the concept of Online Trading. This especially since Victor Moses’ endorsement of the company and appearance in TV ads and multiple promotional materials.
To help those looking for knowledge, we have decided to provide some info, debunking 8 of the most common myths about Options Trading.
- Day trading is like gambling: Online trading isn’t gambling. Gamblers wager money or something of value on an event with an uncertain outcome with the primary intent of winning more money or material goods. Brokers like Binomo, offer trading platforms where users can earn certain percentages on rises or falls in currency exchange rates and prices for shares or commodities. This isn’t “uncertain” or a “gamble”, as long as one can put in the work required to obtain knowledge, through proper research, that will enable you to make informed decisions.
- Day trading is a man’s game: Some of the best traders in the world are women. This particular myth was borne out of the false beliefs that only men are ‘good with money’. As is common in many traditional Nigerian homes, mothers act more or less as the ‘business administrators’ of the household. The skills required to become successful in options trading are not gender specific.
- You need an advanced degree to trade: Anyone with the ability to read, use the internet, research and think in a strategic way is capable of trading. Online trading is one of those streams of income that are completely removed from the claws of ‘academic qualification’, and no matter what race, level of education, religion and financial background that you come from, you can trade and make wins.
- The more expensive, the more valuable the day trading course: There are so many courses online that are targeted at enthusiastic and amateur traders who are gullible. Well, these courses may help, if you are properly guided, but, there is a general perception that whatever is expensive must be valid, but that’s not the case with online trading. For example, on the Binomo platform, there are loads of free video tutorials and training materials that everyone can learn from. Once you’ve researched and done your homework, it’s all down to how intuitive you are about your predictions.
- Online trading is only for professionals: Just like a lot of other services that were only exclusive to professionals before the saturation of the internet, day trading was only handled by professionals. However now with mobile internet, mobile apps, and with almost 100 million internet users in Nigeria, more diverse demographics of people can now sign up and enjoy the financial benefits of options trading.
- You need a lot of money to trade: Platforms like Binomo have a minimum trading amount of $1 which is approximately N360 in today’s exchange rate. This is like the price of a loaf of bread with a bottle of water!
- Online trading is an easy way to make a quick profit: Online trading is NOT magic. A lot of other ‘get rich quick’ schemes have been seen in Nigeria (remember MMM?) in the past. These come out of nowhere, become popular and quickly fizzle out leaving behind heartbreaks. Online trading, on the other hand, is a skilled business that may or may not yield profits, and so isn’t guaranteed. However, with good tools and smart decision making, one can enjoy very impressive profits from trading with legitimate brokers.