Welcome back to another humble Trader video. I Was replying my emails earlier and one of you guys sent me this: I Would love to day trade, but the 25 000 limit limits Who can trade in this video. We're going to judge the most common misconceptions about trading. So Traders are we going to debunk these misconceptions? or are we going to let it slide? I'll let you decide so don't forget to smash the like button and subscribe.

or I'll find you guilty with this. Lamborghini Number One: I Cannot stay trade under 25 000 because of the PDT rule. Basically, this rule suggests that if you are in the United States and using a Us-based broker, that you might be subjected to the pattern day trader rule. If you're trading with a small account under 25 000, This rule could potentially limit your trading since that means you can only day trade three times for every five day rolling period essentially three times each week.

The PDT rule only applies to U.S residents and some International Traders using Us-based Brokers But that definitely does not mean you cannot day trade. it just means you can only day trade three times a week if you have less than twenty five thousand dollars. There's also many solutions to this. If you really want to day trade more than three times a week, you can open a cash account because the PDT rule only applies to margin account.

Essentially, if you use a cash account, your cash will take two days to settle and that means you can only go long, but you no longer have a three-day trade restriction per week. Another solution is you can also open multiple margin accounts under PDT. So that means if you have two trading accounts that's a margin, then you will have six day trades in total per week. I Think this rule really forces the new traders to be really patient for the setups.

Instead of jumping into random trades, you need to look for all the criteria for your strategies and enter only when those scenarios are met. So for misconception, number one: I Cannot day trade with less than twenty five thousand dollars? That is debunked. The second one is also why I Hear a lot. Stocks are so manipulative and risky to trade, so you should.

they trade options instead. That's safer. This is one of the most popular type of comments I Get ever since I started making YouTube videos. hey, you should buy calls or buy pets instead.

it's much safer. you don't have to lose so much money trading these Equity shares. I Think this concept could be true if you are shorting stocks which is something. I Do do a lot.

You have a maximum loss when you are buying puts so your long put as compared to if you are shooting stocks which your loss technically could be unlimited from my own personal experience and my own opinion. I Think it's much harder managing risk on options because not only do you have to be right on the direction of the stock, up or down, you have to be right on the premium. Decay Essentially need to be right on the timeline. I've dabbled in options once many, many years ago and that's after I became profitable in stock trading I Absolutely blew up my two thousand dollars options account so never again.

In my opinion, some of the biggest options Traders I Know they usually learn stock first, so they Master stock trading in trading shares. then they start dabbling in options to learn the Greeks and understanding data. The rise of Robin Hood trading app in 2020 and 2021 really popularized all the YOLO out of the money calls. So while you do see some people making some outrageous gains thousands of percent when you do not see other people who left their contracts expired to zero percent, so essentially losing everything, but once again, that's just my own personal opinion.

Everyone has their own trading style. If you're good at options, sure stick with it. but if you're finding that it's very hard to manage a Theta and options I Would recommend learning to trade actual stock first before dabbling in options trading. so I think for this one I Don't think it's a misconception I Think it's just everyone has their own opinions.

So let me know in the comment section below. if you think trading stocks or options are riskier here, and which one have you blown up your account on? Okay, so I think for this one. We'll let it slide. Next is a very fun one and it's very debatable.

Bitcoin Is so much easier to trade Young people trade crypto. The stock market is for the oldies. Hey Siri am I old. If I trade stocks, your answer will be delivered in three to five business days.

This is useless. Sure, it's Apple Okay, wow. I guess the Genziers are calling Millennials old now. but it is true I never traded crypto, but that is something.

I Kind of want to start dabbling in on the side for fun, you know, just for fun. I do have a crypto portfolio that I've had for a while now and I'm pretty sure I'm down like 60 percent on the investment now and probably just huddling at this point. But it is true that crypto trading has been gaining a lot of popularity, even more than stocks. but I think it's because there's almost no entry barrier to crypto trading.

Anyone can download a mobile app and fund their crypto wallet with as little that was fifty dollars or even less. and it also depends on whether you are a long term or short-term Trader in Crypto Many swing. Traders Probably had a very successful year in 2020 due to the Bitcoin rally. I mean that thing just went all the way up to 60k right? Same for the swing traders who shorted the crash earlier this year in 2022.

However, Bitcoin as well as other major coins just have been really choppy the last couple of months for day trading and just being down trending in the past few months, so it hasn't been great for the day. Traders at the same time I Also know that a lot of crypto trading platforms are offering 100x leveraged trading 100x I'm just like oh my God that is. that is insane amount of risk in stock trading. The Leverage we get is 4X intraday that's already a lot.

Some some Brokers give you 6X of that which is still insane to me. but overnight it drops down to 2x. so I think that is to protect the Traders So when you have something that's 100x margin in crypto trading, oh, I cannot imagine how risky that is and how people can sleep with all the overnight moves that we've been seeing on on Bitcoin the last couple of months. So yeah, if you're trading crypto, do you even get sleep? Do you have to stay up all night? You're watching your positions because you are leveraged like you know, 10, 20 up to 100 times? Let me know in the comment comment section I'm genuinely really curious.

So is Bitcoin easier to trade? Not really in my opinion. It really depends on how experienced you are as a Trader and whether you're a day trader or swing Trader in crypto. And also it's the stock market for the ODS I Don't think so. Oh, and let me know in the comment section below, if you want to see me attempt to trade crypto, the next one is if you spend more time in front of the computer, that means you're going to make more money.

Yes, it is true that Traders generally spend a lot of time in front of their computer screens to follow up with the news earnings reports and doing all the technical analysis, watching a lot of stocks at the same time. For me, I'm usually in front of my trading computer from 4 30 am my local time here to about nine o'clock in the morning at least. and then I go on a break. So that's almost five hours of screen time in the morning before the afternoon session.

So yeah, I definitely spent a lot of time in front of the computer. However, most screen time sitting in front of the trading station does not mean you'll make more money from more trades. Remember, trading is all about waiting for your proper setups and execute the proper strategy. So yes, while I spend a lot of time in front of the computer, I am not always executing my trades I usually try to keep my tickers to just one or two, sometimes three to four maximum.

I'm a very good day if there's a lot of opportunities and then I place those trades. But just because I'm there five hours a day does not mean I'm placing trades. left and right for like five hours straight. I Think that's a recipe for disaster and that's the reason why a lot of people are bored and trained and they actually Revenge trades into losing a lot of their profits.

But if you're using that time to save your charts, analyze different uh, catalysts, looking at the news, and saving charts for each strategy, then I think that is a better use of your time in front of the screen and could ultimately means you can make more money down the road. So I'll also let this one slide. This is something I hear a lot, especially after the middle of 2021. The broker is against you.

Well, if your broker is free commission trading, then yeah, that's probably true. Remember, free commission trading is not actually free. You are paying for your trades in some other ways for most of the premium. Brokers I Use it's in their best interest to make sure the Traders are set to succeed because obviously they make money from commissions, right? So they want you to stick around the trade for as long as you can.

So that's why I'm all for paying for commissions when it comes to my picking my trading brokers. Another thing to know is whether your broker sells your order flows. That's definitely something you want to try to avoid if you can, but that's why you should be using Brokers and platforms that are made specifically for active Traders if that's what you're doing. if you're swing Trading they were investing.

it really doesn't matter as much. I've mentioned many of the Brokers I personally use before and I'll list them down below in the description. So for this one, I do have to debunk this next. A Good: Trader Can trade in any Market environment.

In my opinion, this is generally true, but it really depends on the trader style and how willing he or she is to adapt to the market sentiment. Some Traders are better at trading breakouts and being long biased then this year. Even though it's a little bit tough in 2022, there's still opportunities to profit on the long side. as long as they are patient and at the same time as long as they are good at managing their risk and downsizing in a market environment that's not suitable for them, they will be around for the next bull market and they will be thriving and making bank remember.

Adapting to the market is key. Some Traders are masters of shorting and I'm sure this year is a killer year as well. So in my opinion, a good Trader is a necessary one that can trade in all Market environments all the time, but one who can manage your risk well and adapt in all sorts of Market sentiment. So for this one, I'm gonna call this a misconception that is debunked.

Last but not least, all trading gurus make YouTube videos and sell courses because they don't know how to trade themselves one over the last few years I Definitely seen a lot of comments like this. A lot of people don't know this about me, but before YouTube in 2019 I was actually really active on Reddit and I really helped a lot of people on Reddit for free. Many of them have gone on to become full-time Traders and many of them are still in my current Discord Community They know me in says 2016 and 2018 and it's through their encouragement and of course my own interest in making videos from my previous career that started making YouTube videos in 2019.. what started out with just some fun, silly videos that are free on YouTube eventually became a business as I put into more time and hard work.

So whether you're a pay member or not and just watching a free video on YouTube I can guarantee that you can still learn a lot from my YouTube videos. and to the idea that nobody profitable would be teaching on YouTube Boys sell courses then who are you supposed to learn from? Why would anyone go to school to learn anything? and to the notion that if you're making so much money, why do you need to make even more through businesses then why does Jeff Bezos or Elon Musk keep on starting new businesses Or new Ventures Some of the best and the biggest millionaire Traders I've met from Traders For cars they all have multiple businesses and a lot of Ventures both in the stock market and out of the stock market. I Put in my best into everything I do especially for my members whether it's a video lessons the pre-market calls, the live trading recordings will add in more strategy videos for The Humble Trader Academy So whether you're a member in my trading Community or just watching my videos for free on YouTube I guarantee you you'll learn a lot of high quality information about day trading. So now you know about the top seven misconceptions about trading.

You should also be aware of the top five deadliest beginner mistakes, so you can avoid them. so make sure to watch that video. so let me know your thoughts on everything we covered in today's video in the comment section below. Thank you guys so much for watching! As always I'm the humble Trader and I will see you guys next time.