Market Myths That May be Sabotaging Your Trading

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3 myths that may be sabotaging your clinical trial enrollment effort


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Myths are stubborn, persistent, and can easily put your well-intentioned clinical trial enrollment efforts at risk. But spotting and correcting them can be a challenge. To help the industry discern fact from fiction, BBK Worldwide assembled its own MythBusters team, dedicated to confirming or busting common clinical trial myths. Empowered with data from its industry-wide surveys of patients, physicians, and clinical trial sponsors, the team identifies pervasive myths, puts them to the test, and arrives at a verdict.

So far, the team has busted three myths surrounding physician referrals, health apps, and patient engagement. Individually, each debunked myth provides valuable insight to empower clinical trial sponsors in strategizing their recruitment and engagement efforts. Collectively, they show the importance of questioning tried and true practices and reveal missed opportunities to engage patients and physicians in the clinical trial process. These findings can be leveraged to enhance clinical trial enrollment and engagement success. (Detailed survey results are available to download.)

Myth 1: Doctors are unwilling to refer their patients to other specialists for access to clinical trials

More than half of the study sponsors surveyed for this myth believe that doctors are unwilling to refer their patients to other specialists for access to clinical trials. Of these, 61% believe it’s because they fear losing their patient. It’s a stubborn myth, perpetuated in part by those who believe that physicians fear losing their patients to the care of the investigator following the conclusion of a study.

But the reality speaks otherwise. Of the physicians surveyed, 69% said they had in fact referred a patient. And those not willing to refer said that 68% of the time it’s because they have questions about the protocol. With this new evidence, sponsors should feel empowered to take more dramatic measures to engage the physician community as partners in the clinical trial enrollment process.

Myth 2: New app technology inherently equals improved clinical trial participation

There’s a belief that new study apps and innovative technologies will revolutionize the patient experience – improving outcomes, medication adherence, and engagement in the process. Many credit technology alone, believing it drives patient engagement. To challenge this myth, the team pits technology against content, asking patients to share their experiences using health management apps.

Of the 284 patients surveyed, 56% indicated they use health management apps. When asked to indicate what keeps them interested in using their health management apps, a staggering 68% indicated that the content is updated regularly; 65% indicated the content is relevant and personalized; 59% indicated the app is visually appealing; and 41% indicated the app provides important health reminders.

“Despite all the excitement around new technologies, and the convenience they offer, patients still want relevant content,” says Aaron Fleishman, Director, Market Development, BBK Worldwide. “In the process of busting this myth, we realized that content is extremely important in driving regular engagement and interaction with an app – content that is both educational and personal.”

The data also revealed that despite all the buzz around new health apps, 44% of patients are not using them, primarily because they never thought of using an app to help manage their health. The findings reveal an opportunity to increase the number of people benefiting from health engagement apps through awareness and education.

Myth 3: Patient engagement cannot properly be measured in a way that illustrates a return on investment (ROI)

Many argue there is no definitive way to measure patient engagement, finding it hard to justify an investment. By going directly to clinical trial sponsors, the MythBusters team was quickly able to dispel this belief. Of the 453 sponsors surveyed, 44% cited a decrease in withdrawal rates most closely aligning with effective study engagement, followed by 28% citing qualitative data demonstrating patient satisfaction. The team turned to patient responses to measure the return on investment.

Patients who had a positive experience while participating in a clinical trial cited programs like travel and reimbursement as positive reasons for why they stayed in the study. Patients who did not have a positive experience participating in a clinical trial cited the fact that they did not have access to programs like travel and reimbursement, and close to 40% of those patients dropped out of the study. The results show the positive impact engagement tools have on the patient experience, and they provide study sponsors with the confidence they need to readily embrace them.

For a closer look at the data that was used to bust these myths, and key insights to leverage for clinical trial enrollment success, please download our MythBusters infographics.

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The Myths Of Trading You Must Remove From Your Mind

There are numerous misconceptions and incorrect assumptions that surrounding trading. These myths are held both by aspiring traders as well as the public. Not only are they untrue, they are hurtful both to you as a trader and your chances off success but also to the reputation of trading in the minds of the public who know next to nothing about it.

In this article, we are going to dispel 11 of the most common myths of trading and explain to you why they are not true…

Hopefully, after finishing today’s lesson, you will have a better understanding of the reality of trading, what to expect and how to profit from it. Each trading myth will be followed by the truth and an explanation of both:

The Myths of Trading:

Myth: Trading is all about making that fast-cash man!

Truth: Trading is about not losing money, you must learn to do that if you want to make any…

Perhaps the biggest myth about trading in the general public’s mind, is that it’s all about making money fast. High risk, fast money, fast cars, etc. etc. The stereotypes that surround trading are so widespread that most beginning traders get into trading due to these stereotypes and so they start off with the complete wrong mindset and expectations. These expectations come to a crashing realization once they lose a few trades and reality sets in. As the great Warren Buffet so famously said:

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. – Warren Buffett

That’s right, trading is about not losing money much more than it is about making it. The reason is, if you want to make money in the markets, you must be a risk manager more than anything, a capital preservationist, if you will. If you want to take advantage of big moves in the market, you’ve got to learn to preserve your trading capital by bidding your time and being patient in the face of constant temptation.

You will be in battle not only against all other traders trading the markets you look at, but also against yourself, which is perhaps the hardest ‘opponent’ to defeat. Once you get to the point where you can preserve your trading capital and only use it on trading opportunities that meet your strict, pre-defined criteria laid out in your trading plan, then you will have conquered yourself and you will start taking money from other market participants rather than giving it to them.

Myth: You need to be an Ivy-League, Wall Street hotshot to make it as a trader

Truth: You don’t need to be super smart, trading is as much skill as it is math…

Guess what? You don’t need to be a college graduate to be a successful trader. Trading isn’t only for some super-genius math wiz who sits there coding algorithms all day. In fact, just like being overly-emotional can be bad for trading so can being overly-analytical. Those who are too analytical tend to over-think and think themselves right out of perfectly good trading opportunities.

Ideally, you want to have a good mix of gut feel and analytical trading abilities. Your gut feel will give you many trading ideas and the desire to take them but your analytical /forward thinking abilities will be the check that keeps your trading in balance. Only when a trade idea passes both your gut feel and your logical, objective analysis should you consider entering it.

The point of the matter is that college degrees, IQ’s and other ‘credentials’ are nothing but background noise to the market. Those who succeed at trading are masters of themselves. Master your own actions and behavior and ability to control them and you will succeed at trading. All the books and an IQ of 180 won’t do you any good if you over-trade or risk too much or cannot remain disciplined.

Myth: You must have perfect timing to make money in the markets to pick highs and lows exactly

Truth: Trading is not about picking the highs and lows, it’s about reading the charts from left to right…

You don’t have to pick exact market turning points to make money trading like many people think. You do have to read the chart, the story on the chart and understand what it’s trying to tell you. You then look for price action signals that ‘make sense’ with that chart’s story.

In this recent Gold chart, we can see that the story on the chart was this:

An uptrend was in place on the daily chart as seen below. Then, we drew in the key horizontal levels of support to look for signals at. Then, price pulled back to support and formed an obvious pin bar reversal signal there, indicating a long entry was appropriate. You can see what happened next. We are reading the chart and considering the context a potential trade entry forms within, not just trying to pick the exact high or low with no rhyme or reason.

Myth: You need a lot of money to stand any chance at making money in the market

Truth: You don’t have to have a lot of money to start, a good trader can make money regardless of account size…

Often, traders believe that to succeed at trading they need a big trading account. But, this is simply not true. IN fact, you can lose money on a big trading account just as fast as you can on a small trading account. It’s best to start with a smaller account even if you have a lot of money to trade with. Will a large trading capital reserve allow you to make more money faster? Sure. But, fi you don’t know what you’re doing you can also lose that money faster.

The strategies, skills and mental attitudes you need to succeed at trading will work on a small account the same as a big account. It’s always best to start on a small account and hone your skills, then when you’re ready you can deposit more money if you have it or just keep building that small account.

Don’t be in a rush! If you build a track record of successful trading on a live account, even a small one, you will be a successful trader. Building a successful live account track record over a period of a year or more is something that FEW people can do. If you do that, even on a small account, your success will start to snowball.

Myth: You have to know what is going to happen next in a market to make money.

Truth: You don’t have to be right or know what will happen next to make money, you must understand that you can never know for sure what will happen…

One huge myth about trading is that to make money you must know what will happen next. This couldn’t be further from the truth and in fact, it’s not even possible. Part of trading is that there is a random expectation for any one trade you take. Meaning, any individual trade, looked at in a vacuum, so to speak, has essentially a random outcome. This is because there are thousands, maybe even millions of variables affecting a market at any given day at any given time. As a result, a trade really can go either direction, even if you believe you are 100% right about it.

Where your trading strategy or trading edge comes in, is that over-time, given enough trades, if you follow your strategy with discipline, it will play out in your favor. Most trading edges or strategies are simply taking advantage of repetitive market patterns or price action patterns that form because of repetitive human interactions with the market. So, whilst your trading edge might have 60%-win rate, any singular trade has essentially a 50/50 chance of working out. So, don’t start convincing yourself “I’M RIGHT!” about your next trade because you’ll start risking too much and getting too emotionally attached to that trade, which is a recipe for disaster.

Instead, realize and understand that there is something called a random distribution of wins and losses, which essentially means what I described above. For any given trading edge or strategy, over time and over a large enough sample size of trades, that trading edge will show a randomly distributed pattern of wins and losses. So, whilst you do need confidence in your trading ability and chart reading skills, you cannot afford to becoming convinced you are ‘right’ about any one trade and you must always remember that ANY trade can be a loser. For more on this topic, checkout my article on trading legend Mark Douglas.

Myth: You need a high-percentage of your trades to be winners to make money

Truth: You don’t have to win a high-percentage of your trades, you must maximize your winners instead…

You’ve probably heard of risk reward ratios, but do you really understand their power? You don’t need to win all your trades to make a lot of money in the market, in fact, you don’t even need to win most of your trades! How is that possible you ask? By understanding and effectively utilizing risk reward ratios.

Let’s say you set a risk reward of 1:3 for every trade you take. That means, you risk 1R where R = dollars risk to make 3R or 3 times your dollars risked. At this risk reward ratio, you only need to win 25% of your trades to breakeven and about 27% of them to make a profit (after commissions / spreads).

Let’s take 100 trades. Say you lose 70% of them that would be 70 out of 100; you have lost 70R which for examples sake we will say is $700 or $10 per trade ($10 = 1R). Now, if you have a 1:3 risk: reward, you are making $30 on all your winners, but you only had 30 winners, right? However, that is still $900 in profit! So, you lost $700 but made $900, profit of $200 even though you lost 70% of the time!

Risk reward ratios: You only need to win 27 – 30% of the time to make money if your winners are 1:3. With a 1:2 risk reward you only need to be right about 35% of the time. Traders get caught up in trying to win on every trade, but this is a fool’s game, very stressful / time consuming and simply not possible.

A 50%-win rate, which is totally possible if you’re a master of price action, can make you a very large sum of money each year by trading with a 1:2 or 1:3 risk reward. Most traders believe they must win at a very high percentage, but it’s simply not accurate and not conducive to a proper trading mindset.

Myth: Automated trading robots or indicators (systems) are the ticket!

Truth: Not if you want to succeed long-term or on any level of magnitude…

All you need to do is read some of the Market Wizards books and you will quickly realize that most of the world’s greatest traders are not buying Forex trading robots and simply loading them onto their computers and getting rich. This pipedream sold by computer programmers who know almost nothing about how to read the charts, is a huge trading myth.

Any fully mechanized trading system or algo-trading method is going to fail over time. Trading conditions change frequently and even rapidly. It takes an experienced, educated and skilled human mind to discern between good trading conditions and bad. If trading was as easy as installing some software on your computer and pushing the buy or sell button when the software tells you to, everyone would be a billionaire.

Think about the most famous traders and investors you know: Warren Buffet, George Soros, Paul Tudor Jones, any of the traders in the Market Wizards books; they are using their minds not trading robots. Don’t fall for the hype, learn to trade properly and then use your mind to make trading decisions.

Myth: You can only make money in trending markets or ‘easy’ market conditions.

Truth: If you know how to trade with price action, any market condition is game

A skilled price action trader can make money in a trending market, in a market that is swinging widely and not in a perfect trend, in a range-bound / sideways market or even counter-trend. Obviously, there are times when a market is just too choppy to trade, but this is where your price action skills come in again; reading that chart from left to right and determining whether or not conditions are ripe for a trade. One of the beautiful things about price action is that it can give you good trades in trending or sideways markets. As we see below, a market that is confined to a trading range can provide many good trading opportunities for the savvy price action trader…

Myth: Day-trading is the fastest way to make money and get a Lamborghini.

Truth: Day-trading will probably cause you to lose money faster than a trip to the casino…

Shorter time frames give you more opportunities, to lose money maybe! – Shorter time frames contain more choppy, meaningless price movement and false-signals that will grind you down to a bloody pulp. TRUST ME – WAAY more lucrative and less stressful to focus on the daily charts and see a signal, enter it /set it up, then walk away for a week, as opposed to constantly obsessing on low time frame charts. You will save transaction fees, time, mental energy, and you will make more money trading by taking one or several high time-frame trades a month with minimal involvement by set and forget, than you will day trading.

Myth: I can’t use wide stops because I don’t have much money.

Truth: Money has nothing to do with your ability to place wide stops and wide stops are what you need most of the time…

Have you heard of position sizing. Here it is – say you want to place a 150 pip stop loss because that is the best stop loss placement for the trade you want to take. But, you only have a $500 account – think that stop is too wide for you? Wrong.

All you need to do is lower your position size. If you want to risk about $30 per trade on that account, you would just need to adjust your position size to 0.20 mini lots on a that 150 pip stop, that is $30 on any XYZUSD currency pair.

If you don’t understand position sizing, you certainly need to make sure that you do before you start trading live. Again, you do not need a lot of money to take on wider stop losses! You simply need to reduce your position size! I am all about wider stops as they can keep you in good trading ideas and help you from getting stopped out prematurely like many traders do.

Myth: My relative or friend or told me trading is like gambling.

Truth: It can be, if you let it!

Finally, perhaps the biggest trading myth out there is that Forex trading or any type of speculating on financial markets is the same as gambling. This is a broad generalization / stereotype that the public who do not trade and know nothing about it, hold in their minds.

The reality is that if you want to gamble, you can do it in the markets. However, you can also treat trading like a high-class, upper-echelon profession that takes time and persistence to get good at. Unlike gambling at a casino, you can put the odds in your favor as a trader through proper trading education, learning from those more experienced from you and screen time. When you go to the slot machine at the Bellagio, your odds are always about the same; extremely slim. A skilled price action trader can make a full-time living trading the markets, easily winning 35% to 65% of their trades. You will never go to a casino and win even 20% of the time. So, trading can be gambling, if you allow it to be, as many traders do. But, if you want to succeed at it you have to focus and become skilled so that you make into a high-skill game of probability and mental fortitude, one that has nothing at all to do with luck.

What did you think of this lesson? Please share it with us in the comments below!

5 Trading Myths That Need to be Busted Right Away!

You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.

Ever since I’ve started trading many years ago, I’ve been advised many times by friends and relatives to stay alert or stay away from the stock markets. I’ve always been a cautious trader, due to which I feel to have lost a few great opportunities. Over the course of many years of learning through trial and error, I realised that trading should be taken as seriously as any other profession. I always advise my friends to take some calculated risks in trading, at the same time make informed decisions for long term investments. Here I will go through some of the trading myths in order to prove that trading is after all worth all the effort and money invested.

1. Trading is Gambling:

Sure it is if you are not prepared, just like running a business is gambling, driving a car is gambling or even trying to catch a ball thrown straight at your face is gambling. What is common in all these acts is that they all require practice & dedication, and you are bound to get hurt if you don’t follow a set of rules. Trading is no different and what I’ve learnt from my years of trading experience is that you can literally turn the casino tables if you trade with devotion, not emotion. Trading definetly involves taking risks which is why you are rewarded, however these risks can be minimised through diversification, following stop loss rules, and trading based off your own research instead of market tips or news.

2. Higher leverage means larger profits:

If this was the case, why would stock brokers impose rules such as auto-square off or interest on margin shortage? Higher leverage sure means higher profits if the market turns in your favour, however it also means higher losses if the reverse happens. Leverage is a double edged sword which is designed to hurt the customer without his knowledge. At TradingBells, we advise our client to not utilise the full leverage we extend, instead invest your time and money in picking the best companies which are fundamentally strong and where they will be happy to stay invested for a long period of time.

3 .What goes down will eventually rise:

As Keynes has rightly said ‘Markets can remain irrational longer than you can remain solvent’. Never trade assuming the markets will rebound after a crash as you may find yourself waiting till eternity and eventually might have to exit at unfavourable levels. Markets may rebound after a crash, but this can take months or even years as was evident in case of DJIA which took 22 years to revert to the pre-1929 crash levels. Hence I always ride the trend when trading in the short term, and invest in fundamentally strong companies for the long term.

4. It’s not easy to trade online by yourself:

Many traders need a second assurance before placing their trade, which is why they prefer to call their dealer or even visit their broker in person for trading. It’s a fact that brokers earn revenue by churning your portfolio, and hence may not always ask you to hold the position for a longer term. Trust in your own research and you can save your time and money by trading yourself online. The number of online traders is growing in India, but we are still a long way behind some of the developed economies. W ith the government supporting Digital India, internet penetration and speeds are bound to rise, thereby promoting the evolving breed of online traders.

5 .More indicators are better:

It is important to look at one or two indicators when day trading, as it not only gives you the trend of the market, but also helps you in making informed decisions. However just like too many cooks spoil the broth, too many indicators may end up confusing the trader instead of showing him the right direction. Set your eyes on a couple of them and follow them consistently to yield the best results.

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