Articles
A dangerous misconception among traders is that FOMC minutes are useless — that they’re outdated, repetitive, or only relevant to economists and institutions. The reality is quite the opposite: FOMC minutes are one of the most important tools for traders to understand the Federal Reserve’s internal thinking, policy trajectory, and inflation or growth concerns. While they don’t always move markets immediately, they often set the tone for future decisions and…… Read more
Many traders believe that a 90% win rate in backtesting equals guaranteed success. It is easy to see why — such a high win rate suggests an almost unbeatable system. However, this belief is extremely dangerous. In reality, a 90% backtested win rate often hides major risks, including huge drawdowns, over-optimisation, or fragile strategies that collapse under real-world conditions. The belief that a 90% win rate in backtesting equals guaranteed… Read more
“A bad trade means a bad trader.” It’s a belief that turns one moment into a label — that one loss defines your identity, competence, or future. But in reality, even the best traders take bad trades. Losses are part of the game, and trading performance is measured over time, not trade by trade. Let’s explore why a bad trade is a data point — not a judgment — and… Read more
This belief is one of the most dangerous myths in trading. While discovering a setup that leads to a winning trade can be exciting — even confidence-boosting — the idea that a chart setup that worked once will always work is false. In reality, no setup guarantees repeated success without context, adaptation, and consistent risk control. Markets evolve constantly, and a single occurrence is not evidence of a reliable edge.… Read more
A demo strategy will always work live? is a dangerous assumption that can lead to disappointment and losses. While demo trading is a critical stage for testing strategies and building confidence, a method that performs well in a simulated environment does not guarantee identical results in live trading. Differences in execution, psychology, market dynamics, and slippage can all impact performance. This article explores why a demo strategy might not automatically… Read more
In the trading world, having a green day—a day where your trades are profitable—can feel like a sign of success and affirmation that you’re on the right track. After all, a winning day feels good and reinforces confidence in your strategy. However, one green day does not automatically mean that you’re consistently on the right path as a trader. While it’s natural to associate profits with success, there are deeper,… Read more
The Sharpe ratio is a popular metric used to evaluate the performance of an investment or trading strategy by comparing its return to its risk. Specifically, the Sharpe ratio measures the return per unit of risk, where risk is typically defined as volatility (standard deviation). A high Sharpe ratio indicates that an investment is delivering a higher return relative to the risk taken. However, a high Sharpe ratio does not… Read more
Many new traders obsess over finding a strategy with the highest possible win rate, believing that more wins automatically mean better performance. On the surface, this seems logical — who wouldn’t want to win 90% of their trades? However, focusing solely on win rate is misleading and can be dangerous if not considered alongside risk, reward, and overall system expectancy. This article explores why a higher win rate doesn’t necessarily… Read more
Many traders fear that a losing streak means you should stop forever. Experiencing multiple losses in a row can be emotionally devastating, shaking confidence and creating doubts about one’s skills and future in trading. However, a losing streak is a natural part of every trading career — not a signal to give up permanently. How you respond to losing periods defines your success far more than the streak itself. The… Read more
Many traders panic during a rough patch, thinking that a losing streak means their system is broken. While it is natural to question yourself after several losing trades, the truth is that even the best trading systems experience periods of drawdown. A losing streak does not automatically mean your strategy is flawed — it may simply be a normal part of trading probability. Let’s explore why losing streaks happen, when… Read more
Many traders believe that a losing trade is worse than a missed trade. After all, a loss hurts your account, while a missed opportunity just leaves you wondering what could’ve been. But this belief can create dangerous habits—because both losing and missed trades carry lessons and risks, just in different ways. Let’s explore why neither should be feared—but both should be understood. A Losing Trade Isn’t Always a Mistake In… Read more
A mentor must be a millionaire? This is a question that many traders ask when considering the value of mentorship in their trading journey. While it can be tempting to believe that only highly successful traders or millionaires can offer valuable insights, this is not necessarily the case. A mentor does not need to be a millionaire to be effective in guiding you toward trading success. What truly matters is… Read more
A profitable day means you’re skilled? is a belief that can be misleading for many new traders. While it feels great to finish a day in profit, a single good outcome does not necessarily reflect genuine trading skill. True skill in trading is demonstrated through consistency, discipline, and smart risk management over a long series of trades — not just one or two successful sessions. This article explores why daily… Read more
A profitable EA doesn’t need monitoring? is a common misconception among traders who believe that once an expert advisor (EA) shows consistent profits, it can be left to run indefinitely without any oversight. While automation can reduce manual work, no EA can safely operate without regular monitoring. This article explores why even profitable EAs require ongoing supervision to maintain performance and manage risk. Why Monitoring Is Essential Even for Profitable… Read more
Many traders mistakenly believe that for a strategy to be considered “profitable,” it must win in all market conditions — trending, ranging, volatile, calm, bullish, bearish. This idea fuels constant tweaking, overfitting, and eventually, frustration. But in reality, even the best trading strategies do not win in every environment. In fact, expecting them to do so can undermine your long-term success. This article explores why a profitable strategy doesn’t need… Read more
The dream of many traders is to find a single, profitable strategy that works forever—no tweaking, no updating, just set it and profit. This leads to the widespread belief that a truly profitable strategy requires no adjustment. But is that actually true? The reality is: even the best strategies need adjustments over time. Let’s explore why trading is not a “set-and-forget” game. Markets Evolve—So Must Your Strategy Financial markets are… Read more
It’s a popular belief among new traders: “A good strategy should work on all markets—forex, stocks, crypto, indices, you name it.” The idea sounds reasonable. After all, price is price, and charts are charts. But in reality, expecting one strategy to work universally across all markets is a flawed approach. Let’s break down why and what actually makes a strategy effective. Different Markets Behave Differently Each market has its own:… Read more
A system must be unique to be effective? is a belief that leads many traders to endlessly search for the “perfect” undiscovered strategy. While originality can offer advantages, the truth is that many highly effective trading systems are based on well-known principles. Success is not about inventing something completely new — it is about mastering execution, risk management, and emotional discipline. This article explains why uniqueness is not required for… Read more
One of the most dangerous misconceptions in trading is the belief that once you’ve found your edge, you’ll have a steady stream of income — like a salary. This idea creates false expectations and often leads to frustration, self-doubt, and eventually account blow-ups when results become inconsistent. While a trading edge is essential for long-term profitability, it does not guarantee steady income. In fact, trading income is inherently variable —… Read more
For traders striving to improve performance and consistency, a trading journal is often regarded as a non-negotiable tool. But when it comes to its structure, a common belief arises — that a journal must be deeply detailed to offer real value. Is this true? Does more detail guarantee better insight, or can simplicity be just as effective? Why detailed journals are valuable 1. Depth of analysisA detailed trading journal captures… Read more
“account growth means increasing risk.” It’s a belief that suggests as your account grows, you must take on more risk to keep up momentum. But in reality, scaling risk should be strategic — not emotional or automatic. Account growth gives you options, not obligations. The best traders grow their size with control, not urgency. Let’s explore why account growth doesn’t require bigger risks — just smarter ones. Risk should grow… Read more
Many new traders worry that admitting mistakes is a sign of weakness or unreadiness. They think that acknowledging errors means they’re not cut out for trading—or worse, that it will damage their confidence. But this belief couldn’t be further from the truth. In reality, admitting mistakes is a sign of maturity, not failure. It’s one of the defining traits of a trader who’s on the path to long-term success. Let’s… Read more
Affirmations are a popular tool in mindset development — simple, repeated statements aimed at reinforcing positive beliefs. But can affirmations truly change trading behaviour? The answer is yes — but only when they’re used correctly. Affirmations alone won’t transform your trading overnight, but when integrated into a broader routine of self-awareness, reflection, and aligned action, they can play a powerful role in reshaping your behaviour. What Are Affirmations? Affirmations are… Read more
The belief that African traders are underfunded is a generalization that does not fully capture the diverse financial landscape across African countries. While it is true that funding and capital access can be more challenging in certain parts of Africa, it is inaccurate to say that all African traders are underfunded. In recent years, African financial markets have seen rapid development, with many traders gaining access to global financial markets,… Read more
“After a loss, you must trade again immediately.” It’s a dangerous mindset — often driven by frustration, ego, or the urge to “make it back.” But in reality, jumping straight back into the market after a loss is one of the fastest ways to spiral into poor decisions and deeper drawdowns. True professionals don’t react emotionally — they respond with discipline, clarity, and process. Let’s break down why pausing after… Read more
The idea that AI can predict black swan events—rare, unpredictable, and high-impact events—is a compelling fantasy. While AI excels at processing massive datasets and recognising complex patterns, true black swan events are, by definition, unforeseeable. That means AI cannot predict them—though it may help identify fragilities and improve response speed. Let’s clarify what AI can and cannot do when it comes to extreme market events. What Are Black Swan Events?… Read more
The belief that AI doesn’t need market updates is a common myth. While AI systems can analyse massive datasets and learn complex patterns, they are only as good as the data they are trained on. In fast-moving financial markets, where regimes shift and conditions evolve, failing to update an AI model leads to inaccurate outputs, poor predictions, and serious trading risks. Let’s explore why regular market updates are essential for… Read more
The claim that AI never needs to be retrained is a myth—and a dangerous one in trading. While AI models may seem self-sufficient once deployed, all effective AI systems require regular retraining, updating, and validation to remain accurate and relevant. Markets evolve, data shifts, and without retraining, performance quickly degrades. Let’s break down why AI must be retrained—and what happens when it’s not. Markets Are Non-Stationary Financial markets are: AI… Read more
With the rise of automation, machine learning, and algorithmic trading, many believe that AI systems now outperform human traders in every market. While AI has made major strides, it’s a myth that AI outperforms humans in all trading environments. Let’s break down what AI can (and can’t) do—and why human traders still have a vital edge in many areas. Where AI Excels AI systems have a clear advantage in certain… Read more
Some traders believe that AI trading is foolproof — thinking that artificial intelligence (AI) can perfectly predict market movements and eliminate losses entirely. However, while AI brings impressive capabilities to trading, it is not foolproof, flawless, or immune to failure. Markets are dynamic, influenced by human emotion, unexpected news, and complex interactions that no system — even AI — can fully control or predict consistently. Let’s explore what AI trading… Read more
With the rise of advanced algorithms and machine learning, it’s often said that AI understands market news better than traders. While AI can process vast amounts of information at lightning speed, the truth is more nuanced: AI excels at detecting patterns, speed, and sentiment—but human judgment still dominates when it comes to context, nuance, and intuition. Let’s explore what AI can and can’t do when it comes to understanding market… Read more
Some traders believe that algorithmic trading requires no skill — assuming that once you set up a trading robot or automated system, the hard work is done and profits will simply flow in. However, algorithmic trading demands a great deal of skill, knowledge, and ongoing management. Designing, coding, testing, optimising, and monitoring algorithms requires deep expertise, not just a “plug-and-play” mindset. Let’s explore why algorithmic trading is far from effortless,… Read more
Some traders believe that all algorithmic strategies are superior — assuming that trading robots, EAs (Expert Advisors), and automated systems always outperform manual trading because they remove emotion and operate faster. However, while algorithmic trading offers major advantages, not all algorithms are automatically better or even profitable. Many fail in live conditions, and human judgement often remains crucial, especially when market dynamics change unexpectedly. Let’s explore why algorithmic strategies are… Read more
The rise of Bitcoin brought credibility to the cryptocurrency space — but the explosion of thousands of altcoins has led some to believe that all altcoins are scams. This belief is rooted in past events: failed projects, rug pulls, and hype-driven tokens that went to zero. While it’s true that many altcoins have no real utility or intention to deliver value, the idea that all altcoins are scams is a… Read more
All bots are scams? is a fear that many new traders have when first encountering automated trading solutions. With countless offers of “guaranteed profits” and “hands-free trading” circulating online, it is understandable why scepticism exists. However, the truth is more balanced: while scams do exist, not all bots are fraudulent. This article explores how to separate legitimate bots from scams and what you should watch out for when choosing a… Read more
Many new traders assume that all broker accounts function identically, but this couldn’t be further from the truth. In reality, broker accounts vary significantly in structure, costs, features, and suitability depending on a trader’s experience, capital, and strategy. Understanding these differences is crucial for optimising your trading performance and avoiding hidden pitfalls. Types of Broker Accounts Explained The most common types of trading accounts offered by brokers include: Key Differences… Read more
Some traders believe that all brokers are out to get you — that every broker’s goal is to manipulate prices, trigger stop-losses, and profit from client losses. While it is true that some unethical brokers exist, not all brokers operate against their clients. In fact, many regulated brokers work hard to offer fair, transparent services because their success depends on long-term client satisfaction and trading volume, not client losses. Let’s… Read more
When choosing a forex broker, one key consideration is execution speed — the time it takes for a trade order to be processed and executed. While many traders assume that all brokers offer the same execution speed, this is not the case. Execution speed can vary widely between brokers due to factors such as the type of execution model they use, liquidity providers, and technological infrastructure. Understanding the differences in… Read more
One of the key factors traders consider when choosing a broker is the spread, which is the difference between the buying and selling price of a currency pair. The belief that all brokers offer the same spreads is common, but in reality, the spreads offered by brokers can vary significantly based on several factors, including their business model, the type of account you have, and the liquidity providers they use.… Read more
The belief that all chart patterns work best on the 4-hour (H4) chart is a popular one among swing traders, but it’s not entirely accurate. While the 4-hour timeframe offers a balance between noise reduction and timely entries, chart patterns do not universally perform best on this timeframe. The reliability of any pattern depends on the market context, trading strategy, asset volatility, and time horizon — not just the chart… Read more
A popular criticism of the crypto market is that its price movements are driven purely by speculation — that there’s no intrinsic value, no fundamentals, and no utility behind the assets. While speculation certainly plays a big role, the belief that all crypto moves are purely speculative is a myth. In reality, many crypto price moves reflect developments in technology, adoption, regulation, macroeconomics, and on-chain activity. Dismissing all crypto movement… Read more
The Engulfing candlestick pattern is one of the most popular and widely recognised reversal signals in technical analysis. It occurs when a smaller candle is completely “engulfed” by a larger one, suggesting that the market is shifting from one direction to another. For example, a Bullish Engulfing pattern happens when a small bearish candle is followed by a larger bullish candle, and a Bearish Engulfing pattern occurs when a small… Read more
In the fast-paced world of online trading, many traders assume that all trade execution is instant — a belief often fuelled by broker marketing and platform interfaces. But is that actually true? In reality, the speed and method of execution can vary greatly depending on the broker, platform, market conditions, and type of order. This article explores why not all execution is instant and what traders need to know to… Read more
A common fear among beginners is that all forex brokers are scams. With stories circulating about fraudulent companies, disappearing funds, and unethical practices, it is understandable that many people approach forex trading with suspicion. However, while scams do exist in the forex world, the reality is that many forex brokers are legitimate, heavily regulated businesses offering professional services to traders around the globe. Let’s explore the truth about forex brokers,… Read more
The phrase “funded account” is widely used in the prop trading world — but not all funded accounts are created equal. Many traders assume that once they pass an evaluation, they’re trading real, live capital in the markets. In truth, not all funded accounts are real in the traditional sense. Some are simulated environments that mimic real market conditions but use virtual funds, while others provide direct access to live… Read more
Many traders believe that all great strategies are either secret or locked behind a paywall. It’s a seductive idea: somewhere out there lies a hidden formula for guaranteed profits, known only to hedge funds or elite traders. But is it true? Let’s uncover the reality behind this widespread trading myth. Why This Belief Exists The trading world is filled with marketing promises, “exclusive systems,” and expensive mentorship programmes. This creates… Read more
A common misconception among aspiring traders is that all great traders rely purely on logic, data, and strict rules — leaving no room for instinct. This belief assumes that instinct is irrational or reckless, and that true mastery means eliminating emotion entirely. But in reality, many of the world’s best traders use instinct — not as a replacement for discipline, but as a complement to it. This article explores how… Read more
“All growth should be exponential.” It’s an expectation driven by charts, compounding curves, and trader comparisons — the belief that once you’re consistent, your account should keep accelerating upward without pause. But in reality, trading growth is rarely exponential — it’s cyclical, uneven, and highly dependent on market conditions and personal discipline. Let’s explore why expecting exponential growth can harm your performance, and why real success is built through steady,… Read more
Many traders believe that all high-impact news events should be avoided — that they’re unpredictable, dangerous, and best left alone. This belief usually comes from early experiences with volatility: slippage, stop-outs, and emotional trades gone wrong. While it’s true that news events carry higher risk, the idea that they must always be avoided is a myth. In fact, high-impact news creates some of the best trading opportunities — if you’re… Read more
In trading, a common frustration is the belief that all indicators lag too much to be useful. Many traders feel that by the time an indicator gives a signal, the market has already moved. This article will explore whether that belief is justified, why indicators behave the way they do, and how they can still be valuable tools when used properly. All indicators lag too much to be useful is… Read more
One of the most damaging beliefs new traders adopt is the idea that all losses are preventable. The assumption is that with enough knowledge, tools, or precision, you can eliminate losing trades entirely. But this belief is not only false—it’s dangerous. The reality is: losses are an unavoidable part of trading, no matter how skilled or experienced you become. Let’s explore why, and how embracing this truth actually makes you… Read more
“All losses must be reviewed in depth.” It sounds like responsible advice — and reviewing your trades is absolutely essential. But in practice, not every single loss deserves a deep dive. Some losses are simply the cost of doing business — they followed your plan, met your criteria, and just didn’t work out. The key is to know which losses require investigation — and which don’t. Let’s explore how to… Read more
The idea that all machine learning systems are profitable is a major misconception—especially in trading. While machine learning (ML) offers powerful tools for analysing data and identifying patterns, it does not guarantee profit. In fact, many ML systems in trading fail outright due to poor design, overfitting, lack of risk management, or inappropriate application. Let’s explore why machine learning is not a magic bullet—and what it takes to make an… Read more
The idea that all markets behave the same way is a common misconception — especially among new traders transitioning between asset classes like forex, stocks, crypto, or commodities. While markets share some universal principles, they also have distinct personalities, structures, and behaviours. Assuming they all act the same can lead to poorly adapted strategies, misplaced risk, and emotional frustration. What Markets Have in Common Despite their differences, most financial markets… Read more
Market volatility is a natural part of the financial landscape, but the belief that all markets crash in September is more myth than fact. While historical data does highlight a recurring dip in equities during this month, it’s essential to explore whether this pattern holds universal truth or is simply a statistical anomaly. Understanding the origins of the “September Effect” can help investors stay grounded and make informed decisions during… Read more
One of the biggest misconceptions in trading psychology is that all mental training applies equally to every trader — that once you learn how to manage emotions, the same strategies will work for everyone. While mindset tools like journaling, visualisation, or meditation can benefit most traders, the idea that one-size-fits-all mental training works for everyone is a myth. In reality, mental performance is deeply personal, and different traders require different… Read more
In the world of trading, the topic of mentorship is often surrounded by controversy. Many traders question whether mentors—especially those who charge fees—are legitimate or just another form of scam. It’s easy to assume that all trading mentors are scammers, especially when there are some in the industry who prey on inexperienced traders. However, the reality is that not all mentors are scammers, and many provide genuine value to those… Read more
“All news is noise.” It’s a phrase often heard from traders who rely solely on charts and indicators, believing that price action reflects everything that matters. While it’s true that not all news is meaningful, dismissing all news as noise is a critical mistake. In reality, some news is noise — but much of it is signal, especially when it shifts market expectations, policy direction, or sentiment. Knowing how to… Read more
Some traders believe that all news moves are fakeouts, assuming that any sharp price movement triggered by news is destined to reverse quickly and trap those who react. While it is true that some news-driven spikes are short-lived and cause volatility traps, not every news move is a fakeout. In fact, many major trends begin with powerful news-driven moves that establish real momentum and lasting directional shifts. The belief that… Read more
“All paid education is better than free.” It’s an assumption many traders make — that if it costs money, it must be higher quality, more complete, or more valuable than free resources. But while paid education can offer depth and structure, the idea that it’s automatically better than free content is a myth. In reality, quality depends on the source, the delivery, and the learner’s needs — not the price… Read more
At first glance, the idea that “all positions should be the same size” seems logical. It creates consistency, simplifies execution, and helps remove emotion from decision-making. But in reality, rigidly using the same position size across all trades can limit your performance and distort your risk profile. Let’s explore when equal sizing makes sense—and when it doesn’t. Same Size ≠ Same Risk If you always trade, for example, 1 lot… Read more
All professional traders trade huge size? is a myth that creates unrealistic expectations about what professional trading looks like. While some traders — especially those at banks, hedge funds, or large prop firms — do manage substantial amounts of money, many highly successful professionals trade moderate sizes relative to their risk tolerance, strategy, and market conditions. In fact, longevity in trading often comes from smart sizing, not swinging for the… Read more
All professionals are consistent daily? is a common misconception that paints an unrealistic picture of trading mastery. While professional traders aim for consistency in their decision-making and risk management, their results are not identical every day. Even the best traders experience ups and downs, varying market conditions, and occasional losses. True consistency in trading is about following the process, not guaranteeing daily profits. This article explains what real consistency looks… Read more
A common myth in trading is that all profitable strategies are secret. Many believe that only hidden, exclusive methods can produce consistent profits, and that successful traders guard their strategies jealously. However, this belief is largely untrue. Most profitable strategies are based on well-known principles applied with exceptional discipline, risk management, and adaptability — not secrecy. The idea that all profitable strategies are secret underestimates the importance of execution, psychology,… Read more
In trading circles, it’s easy to assume that all consistently profitable traders must be using the same edge — the same strategy, setup, or indicator. This belief suggests that profitability comes from uncovering a single “best” approach that all elite traders share. But this is a myth. Profitable traders do not all have the same edge. In fact, they often use very different strategies, timeframes, and philosophies. What they do… Read more
At first glance, proprietary trading firms (prop firms) may appear similar — they all offer funded accounts, profit splits, and evaluation challenges. But the truth is, not all prop firms are the same. In fact, the differences between them can be substantial, affecting everything from trading conditions and risk parameters to payout models and long-term career potential. Treating all prop firms as equal is a mistake that can cost traders… Read more
All pros trade fundamentals? is a widespread belief that suggests every professional trader makes decisions solely based on economic data, news events, or company reports. While many professionals incorporate fundamentals into their strategies, not all of them rely on fundamental analysis exclusively — or even at all. In fact, countless successful traders base their entire approach on technical analysis, price action, order flow, or quantitative models. This article explores the… Read more
“All reversals are traps.” It’s a belief that reflects deep market scepticism — the idea that every turning point is a trick, designed to bait traders in the wrong direction. While some reversals are indeed false breakouts or liquidity grabs, not every reversal is a manipulation. In fact, many reversals are genuine shifts in trend, momentum, or market structure. Labelling them all as traps leads to hesitation, missed trades, and… Read more
All scalpers use the 1-minute chart? is a common misconception that many new traders have when they think of scalping. While the 1-minute chart is a popular choice among many scalpers due to its fast price action, it’s not the only chart that can be used for scalping. In fact, scalpers can use different timeframes, including the 5-minute, 15-minute, and even tick charts, depending on their trading style, strategy, and… Read more
“All stop losses are hunted.” It’s a belief rooted in frustration — the idea that every time price hits your stop, it’s because someone deliberately targeted it. While it’s true that liquidity around stop clusters can attract price, the notion that all stop losses are hunted is a myth. In reality, stops are a normal part of price discovery — and they serve a critical role in market structure. Let’s… Read more
Scalping is often portrayed as the fastest route to success in forex — a high-octane style that promises quick profits and constant action. This has led to the belief that all successful forex traders use scalping. But the truth is, this is a myth. While scalping can be profitable for some, many of the most consistent and successful traders use swing trading, position trading, or macro strategies instead. Success in… Read more
In today’s age of social media and online platforms, the world of trading has become increasingly public, with many traders gaining fame and recognition for their successes. Platforms like Instagram, YouTube, and Twitter are filled with traders who share their strategies, wins, and sometimes their lifestyles, leading to an assumption that all successful traders are public figures. However, this is a misconception. While some successful traders choose to make their… Read more
“All successful traders have rapid early growth.” It’s a myth that fuels impatience, FOMO, and unrealistic expectations. While social media often highlights traders who claim quick six-figure wins, the truth is, most truly successful traders grow slowly, methodically, and with repeated setbacks along the way. Sustainable trading is a long-term game — not a lucky sprint. Let’s explore why rapid early growth is the exception — not the rule —… Read more
Copy trading platforms, such as eToro, ZuluTrade, and Covesting, have become increasingly popular among retail traders. These platforms allow less experienced traders to copy the trades of more experienced or successful traders. While the idea of copying top traders seems appealing, it’s important to ask: Are all top traders on these platforms legitimate? The short answer is no. While many traders on copy trading platforms are legitimate and successful, there… Read more
A common belief in the trading world is that all traders blow accounts — that wiping out your capital is a rite of passage, something every trader must go through before becoming successful. While this myth is rooted in many traders’ real experiences, the truth is more nuanced: many traders blow accounts, but not all. More importantly, blowing an account is not necessary for success. It’s often the result of… Read more
“All traders follow the same path.” It’s an assumption often rooted in cookie-cutter education and one-size-fits-all strategies. But in reality, no two traders follow the same journey. While there are common phases — like learning the basics, developing a system, and managing risk — the way each trader moves through these stages is highly individual. Your background, personality, goals, and environment shape your progress. Trading success is personal — not… Read more
The idea of retiring early through trading is a common fantasy—quit the job, make money from a laptop, and never work again. While trading can offer financial freedom and lifestyle flexibility, not all traders should aim to retire early—and doing so may actually undermine long-term performance. Let’s explore why early retirement is not the universal goal for traders—and what a more sustainable vision might look like. Trading Isn’t Just a… Read more
With the rise of social media platforms and content-sharing networks, many traders feel the pressure to post content online to showcase their strategies, trades, and lifestyle. Whether it’s sharing trade setups, market analysis, or the latest profits and wins, there’s a growing belief that to be a legitimate or successful trader, you need to build an online presence. But does posting content online really make you a better trader or… Read more
A common fantasy is that all traders work from the beach — imagining laptops balanced on sun loungers, palm trees swaying, and profits flowing effortlessly. While trading does offer flexibility in where you work, the reality is that most professional traders work from structured, focused environments — not from beaches. Successful trading demands concentration, routine, and discipline, which are difficult to achieve in holiday settings. Let’s explore why the beach… Read more
One of the most common pieces of advice in trading is that all trades must follow the same setup for consistency. This idea is rooted in the belief that a strict, repeatable approach is essential to long-term success. While consistency is undeniably important in trading, requiring every single trade to follow the exact same setup may not be practical or necessary for every trader. In reality, consistency in trading comes… Read more
Some traders believe that all trades need to risk the same amount, thinking that consistent position sizing is the only path to disciplined trading. While using fixed risk per trade is a simple and effective method — especially for beginners — professional traders often vary their risk intelligently based on trade quality, confidence level, market conditions, and overall portfolio exposure. Not every setup deserves the same level of risk. The… Read more
Many traders are advised that all trades should aim for at least a 3:1 reward-to-risk ratio (RRR), with the belief that this level of reward ensures consistent profitability over time. While the 3:1 ratio is a popular guideline in trading, it’s not always realistic or necessary for every trade. The best reward-to-risk ratio depends on the strategy, market conditions, and timeframes involved. Rigidly adhering to a 3:1 target can often… Read more
All trades should be automated? is an idea that appeals to many traders who are drawn to the efficiency and emotion-free nature of algorithmic trading. Automation certainly offers powerful advantages, but it is not always the best solution for every trading style, every market, or every trader. In reality, the decision to automate should depend on your strategy, goals, and personal preferences. This article explores when automation makes sense and… Read more
All trading gurus are profitable traders? is a widespread assumption that often leads aspiring traders to follow the wrong advice. While some trading educators are genuinely skilled and experienced, many so-called “gurus” focus more on selling courses, signals, or lifestyle dreams than on trading profitably themselves. Profitability in the markets and the ability to teach trading are not always connected. This article explores why not all gurus are profitable traders… Read more
In today’s digital age, many people turn to trading influencers for advice, strategies, and insights on how to succeed in the markets. With the rise of social media platforms like Instagram, YouTube, and Twitter, trading influencers often showcase their trades, boast about their profits, and attract large followings. However, while these influencers may appear to be experts, it is important to remember that not all of them are qualified or… Read more
A popular belief among traders is that all trading signals are scams — that anyone offering trade alerts, copy trading, or signal services must be dishonest or only out to exploit others. While there are many shady signal providers in the market, not all trading signals are scams. Some are legitimate tools that, when used correctly, can complement a trader’s decision-making process. However, relying blindly on signals without understanding their… Read more
One of the most common fears among traders is not being able to withdraw their funds. Whenever a withdrawal is delayed, alarm bells go off — and for good reason. Fast, reliable access to your capital is non-negotiable. But does every withdrawal delay mean the broker is a scam? Not necessarily. While some delays are indeed red flags, others have legitimate explanations. This article explores when delays are routine, when… Read more
The idea that American traders are more aggressive is a broad generalization that oversimplifies the diversity of trading styles found within the United States. While there are certainly aggressive traders in America, just as there are conservative traders, this trait is not uniquely American. Traders from all over the world adopt a variety of strategies, and aggression in trading is more influenced by individual style, risk tolerance, and market conditions… Read more
At first glance, anger might seem like a useful energy source in trading — a sharp, intense emotion that narrows your attention and drives action. But while anger can momentarily heighten focus, it rarely leads to better decisions. In fact, anger in trading is more likely to distort judgement, reduce discipline, and amplify risk, undermining long-term performance. The edge that great traders cultivate comes from calm clarity, not emotional intensity.… Read more
The idea that April is always a bullish month for stocks is a popular seasonal narrative. Historically, April has often delivered positive returns, particularly in U.S. equities, making it one of the stronger months in the stock market calendar. But while this tendency is backed by data, it’s not a rule—and certainly not a guarantee. Let’s explore the truth behind April’s seasonal strength, and why traders must go beyond calendar… Read more
In the trading world, confidence often gets mistaken for arrogance. Some believe that when a trader acts boldly, talks loudly, and dismisses others, it’s proof they’ve mastered the markets. But in reality, arrogance is not a sign of mastery—it’s often a red flag. True mastery in trading is marked by humility, discipline, and self-awareness—not ego. Let’s unpack why arrogance is dangerous—and what real mastery looks like. Mastery Comes With Humility,… Read more
There’s a common misconception in trading that arrogance is a sign of experience. Traders who speak with absolute certainty, boast about profits, or mock others’ methods may appear confident and seasoned. But in truth, arrogance is not a sign of experience—it’s often a symptom of inexperience or insecurity. Let’s explore why the most successful traders are confident, not arrogant, and how humility—not ego—is the hallmark of true mastery. Experience Brings… Read more
The ascending triangle is a popular chart pattern that traders often use to predict bullish breakouts. It typically forms during an uptrend, with a horizontal resistance line at the top and an ascending trendline at the bottom. The pattern is characterized by higher lows, indicating that buyers are consistently pushing the price higher, while sellers are defending the resistance level. Many traders believe that the ascending triangle always breaks upward;… Read more
The belief that Asian markets are too unpredictable is a simplification that does not fully capture the dynamics of these markets. While Asian markets can be more volatile at times due to factors such as political instability, economic shifts, and market reactions to global events, they are not inherently more unpredictable than markets in other regions. In fact, many Asian markets have become well-established and regulated, offering plenty of opportunities… Read more
There’s a popular stereotype in trading communities that Asian traders are more disciplined than their Western counterparts. This belief is often based on cultural generalisations around work ethic, education, and risk aversion. While there may be cultural traits that encourage structured behaviour, the idea that Asian traders are inherently more disciplined is a myth. Discipline is not determined by geography — it is built through training, environment, and psychology. Why… Read more
The Australian dollar vs US dollar (AUD/USD) is widely considered one of the most actively traded currency pairs in the world. It’s often described as a “trending pair”, meaning it tends to move in sustained directional moves rather than range-bound behaviour. But is this always true? While AUD/USD does often exhibit clean trends, the belief that it is always a trending pair is an oversimplification. Its behaviour depends on the… Read more
There’s a belief among some traders that August breakouts are usually fakeouts—that price moves in August often reverse and trap traders. This myth likely stems from August’s reputation as a low-volume, high-noise month. While false breakouts can be more common in August, the idea that all August moves are false is an oversimplification. Let’s explore what really happens in August—and how to trade it with clarity instead of caution. Why… Read more
It’s often assumed that automated trading systems eliminate psychological issues, since they follow rules and execute without hesitation or emotion. While automation can reduce emotional interference, it doesn’t eliminate psychological challenges altogether. In fact, psychology simply shifts from trade execution to system trust, performance anxiety, and human oversight. Let’s explore why automated systems help—but don’t remove—the psychological side of trading. What Automation Does Eliminate Automated systems help minimise: By sticking… Read more
Some traders believe that avoiding trading around news completely is the safest way to protect their capital. After all, economic announcements often cause sharp volatility, unpredictable price spikes, and increased spreads. However, avoiding news entirely can also mean missing major opportunities. The key is not to avoid trading around news altogether but to approach it with the right strategies, risk management, and understanding of the risks involved. The belief that… Read more
“Avoiding risk leads to long-term success.” It’s a comforting idea — that staying safe, playing it small, and steering clear of danger will eventually lead to consistent wins. But in the world of trading, investing, and entrepreneurship, this belief is not just misleading — it’s potentially self-sabotaging. In truth, avoiding risk altogether limits growth, stunts progress, and leads to missed opportunity. Long-term success doesn’t come from avoiding risk — it… Read more
Some traders believe that backtested bots always work live — assuming that if a trading robot or strategy showed good results in historical testing, it will automatically perform the same way in real-time trading. However, while backtesting is an important tool for developing strategies, it does not guarantee live success. In reality, live markets introduce factors that are often not fully captured in backtests, leading to different, sometimes disappointing, outcomes.… Read more
Backtesting is a core part of strategy development. It allows traders to assess how a system would have performed using historical data. Naturally, many assume that a strategy with superior backtested results is the better one. But while backtests are useful, relying on them alone to judge a strategy’s superiority is a critical mistake. This article explores the limitations of backtesting, why impressive historical results don’t always translate to live… Read more
Backtesting 1 pair means it works on all pairs? is a common misconception that many traders encounter, especially when they are developing or testing a new strategy. While backtesting a strategy on a single currency pair or asset can provide useful insights into its potential performance, it does not guarantee that the same strategy will work across all pairs or assets. Each market is unique, with its own characteristics, volatility,… Read more
Some traders believe that backtesting doesn’t apply to scalping, arguing that because scalping happens so quickly and depends on tiny price movements, historical analysis is pointless. However, this belief is incorrect. While scalping presents unique challenges for backtesting compared to longer-term strategies, it is still crucial to validate a scalping method through structured backtesting to understand its potential performance, limitations, and real-world viability. The idea that backtesting doesn’t apply to… Read more
In trading, it is commonly believed that backtesting guarantees forward performance. Many traders assume that if a strategy performed well in historical simulations, it will automatically deliver the same results in live markets. However, this assumption is dangerous. While backtesting is a valuable tool for evaluating strategies, it does not guarantee future success. Real trading involves variables that historical testing cannot fully capture. The belief that backtesting guarantees forward performance… Read more
Some traders believe that backtesting is a waste of time — that the market is too random, too different in live conditions, or too fast-changing for historical testing to matter. However, the reality is that backtesting is one of the most important tools for building trading confidence, validating strategies, and improving discipline. Professional traders know that without rigorous backtesting, you are essentially guessing — not trading. Let’s explore why backtesting… Read more
The idea that backtesting metrics equal live performance is a common misconception. While backtesting is an essential part of developing and evaluating trading strategies, it does not guarantee that the results achieved in backtesting will be replicated in live markets. There are several important reasons why live performance may differ from backtesting results, including market conditions, execution issues, and differences in the quality of data used during backtesting. Understanding the… Read more
Backtesting only works with robots? is a misconception that limits traders’ understanding of backtesting’s broader applicability. While automated trading systems (robots or Expert Advisors) are often associated with backtesting, this important process is not exclusive to algorithmic trading. In fact, backtesting is a valuable tool for traders of all kinds — whether they are using manual or automated strategies. This article explores why backtesting is beneficial for both discretionary (manual)… Read more
Backtesting should be done over a short period? is a common belief, but it’s not necessarily true. In fact, the time period you choose for backtesting can have a significant impact on the results and overall reliability of your trading strategy. While testing over short periods may seem convenient, doing so can lead to misleading results and an incomplete understanding of how your strategy will perform in different market conditions.… Read more
“Bad news for a country always weakens its currency.” It’s a logical assumption — but one that doesn’t always hold true in real markets. While poor economic data or negative headlines can sometimes trigger currency weakness, the relationship between news and currency performance is complex. In fact, currencies often strengthen despite bad news, or weaken despite good news, depending on expectations, positioning, sentiment, and broader market context. Let’s explore why… Read more
Bank traders use the same tools as retail traders? is a misconception that simplifies the reality of institutional trading. While there is some overlap today — especially with the advancements in retail trading technology — bank traders generally have access to far more advanced tools, resources, and infrastructure than the average retail trader. However, skill and discipline still outweigh technology alone when it comes to long-term success. This article explores… Read more
In the world of trading, it’s a common myth that banks always trade against retail traders — deliberately pushing price into retail stop-losses, triggering fakeouts, or hunting liquidity for their own benefit. While banks and institutions do rely on liquidity (often provided by retail), the idea that they are intentionally targeting retail traders on every move is overstated and misleading. Banks don’t trade “against” retail — they trade through the… Read more
There’s a widely shared opinion that “beginners should never scale in or out of trades.” The reasoning is usually that scaling adds complexity, increases risk, or distracts from mastering the basics. While there’s some truth to this caution, the absolute statement is misleading. Scaling in or out isn’t inherently bad—it just requires structure. And for beginners, it can either be a valuable tool or a fast path to confusion, depending… Read more
There’s a common misconception that being a trader automatically means you’re self-employed. After all, traders work independently, make their own decisions, and don’t report to a boss. While it’s true that traders are often independent in the sense that they control their own trades, the concept of being self-employed in the traditional sense doesn’t necessarily apply to all traders. Let’s explore whether being a trader always means being self-employed, and… Read more
In the trading world, a popular narrative persists: “If they were really profitable, they wouldn’t be teaching.” This belief suggests that traders who offer courses, mentorship, or signals must be doing so because they can’t succeed in the markets themselves. It fuels scepticism around educators and implies that teaching and trading profitability are mutually exclusive. But is being profitable and teaching really a contradiction? Not at all. In fact, many… Read more
Many people, especially in the fast-paced, extroverted world of trading and investing, believe that being quiet means you’re not successful. This belief often stems from the idea that loud, outspoken individuals who make bold claims and display their wealth are the ones who achieve the most. However, the reality is that success in trading, and in many other areas of life, is not defined by how much you speak, but… Read more
“Big accounts are easier to manage.” It’s a common assumption — that with more capital, trading becomes smoother, safer, and more forgiving. But in reality, larger accounts bring increased responsibility, greater emotional pressure, and amplified consequences. Managing a big account requires a higher level of discipline, structure, and emotional control — not less. Let’s explore why larger capital doesn’t make trading easier — it simply raises the stakes. More capital… Read more
The idea that “a big loss needs to be followed by a big win” is an emotionally driven mindset that leads many traders into deeper drawdowns. It’s based on the belief that the best way to recover is to trade bigger, risk more, and swing for a quick comeback. But here’s the truth: Big losses should be followed by calm, controlled, disciplined trading—not desperate attempts to “make it back.” Let’s… Read more
The allure of big profits often leads people to associate them with being a great trader. It’s easy to think that anyone who makes significant money in a short period of time must have superior trading skills. However, this assumption overlooks the fact that big profits don’t necessarily equate to consistent profitability or strong risk management, both of which are true indicators of a great trader. In reality, big profits… Read more
Many traders believe that a bigger account means safer trades. It is easy to assume that more money in your trading account automatically reduces risk or guarantees better outcomes. However, while a larger account offers more flexibility and better risk management options, it does not make individual trades safer by itself. Safe trading comes from how you manage risk, not from how much money you have. Let’s explore the real… Read more
In trading, the phrase “go big or go home” is often glorified. But does increasing your position size really lead to better profits—or does it just increase your risk of ruin? Let’s break down this common misconception and uncover what truly drives sustainable profitability in trading. The Illusion of Bigger Positions and Bigger Profits At first glance, it seems logical: the larger your position, the more money you stand to… Read more
Many traders and investors believe that Bitcoin is the only crypto asset worth trading — that all other coins are too risky, illiquid, or irrelevant. While Bitcoin is the most established and liquid cryptocurrency, the idea that it’s the only one worth trading is a myth. In reality, the crypto market offers a wide range of assets with unique volatility profiles, technical behaviour, and opportunities — many of which outperform… Read more
Bitcoin is the first and most dominant cryptocurrency, often referred to as the flagship of the digital asset space. Because of its size, recognition, and historical role, many traders and investors believe that Bitcoin leads the entire crypto market. While Bitcoin often sets the tone for broader market sentiment, the idea that it always leads every market move is a myth. The correlation is strong — but not absolute. Why… Read more
Bitcoin is often seen as unpredictable and speculative, leading some to believe that it never respects fundamentals. This view is rooted in the coin’s extreme volatility, hype cycles, and apparent disconnection from traditional valuation models. But the reality is more nuanced. Bitcoin doesn’t follow traditional fundamentals like earnings or interest rates — but it does respond to its own unique set of macro, on-chain, and sentiment-driven fundamentals. To say it… Read more
In trading, it is often assumed that Bollinger Bands always show reversals. Bollinger Bands, created by John Bollinger, are designed to measure volatility and identify potential overbought or oversold conditions. Many traders believe that when price touches the upper or lower band, a reversal is imminent. However, interpreting Bollinger Bands this way can lead to costly mistakes. The belief that Bollinger Bands always show reversals is an oversimplification. In reality,… Read more
Some traders believe that bonuses always improve your trading — that accepting deposit bonuses, cashback offers, or trading credits from brokers automatically boosts profitability and makes trading easier. However, bonuses can sometimes create hidden risks, complications, and bad habits that hurt your trading more than they help. Not all bonuses are bad, but they must be understood properly — and accepted cautiously. Let’s explore why bonuses are often misunderstood, when… Read more
Many forex brokers and trading platforms offer bonuses to attract new customers or incentivise existing ones. These bonuses can range from deposit bonuses, no-deposit bonuses, cashbacks, or loyalty rewards. On the surface, these bonuses may seem like an attractive offer, allowing traders to increase their account size without additional capital. However, the question remains: Are bonuses always traps? While some bonuses might be legitimate, many can indeed be traps, especially… Read more
A common belief among aspiring traders is that books alone are enough to master trading — that if you read enough material, you’ll automatically become consistently profitable. While books are an excellent starting point, the idea that they’re enough to master trading is a myth. Trading is a practical, performance-based skill, and true mastery comes from applied experience, emotional control, and real-time decision-making — things no book alone can fully… Read more
Bots are better than humans? is a debate that continues to grow as artificial intelligence and automation become more prominent in trading and investment. On the surface, bots seem like the ideal solution: they are fast, emotionless, and can run 24/7. However, the true comparison between bots and humans is far more nuanced. This article explores the strengths and weaknesses of both to help you understand where each has the… Read more
The idea that trading bots can outperform without risk management is dangerously misleading. While automated systems can execute faster, more consistently, and without emotion, no strategy—manual or algorithmic—can succeed without proper risk control. Bots are only as good as the rules behind them, and removing risk management guarantees eventual failure. Let’s break down why even the best bots require strict risk protocols—and what happens when they don’t. What Trading Bots… Read more
Bots don’t need backtesting? is a dangerous myth that some beginners believe when starting with trading automation. The excitement of deploying a bot immediately often overshadows the crucial step of testing it against historical market data. In reality, backtesting is one of the most important stages in bot development and deployment. This article explains why backtesting is essential and what can happen if you skip it. What Is Backtesting and… Read more
Bots don’t need VPS hosting? is a question that often arises among new traders setting up automated systems. Many believe that once a bot is running, it can operate from any computer without additional support. However, the reality is more complex. Whether or not a bot needs Virtual Private Server (VPS) hosting depends on how serious you are about performance, stability, and security. What Is VPS Hosting and Why Is… Read more
Bots work forever once profitable? is a belief that attracts many traders to automated systems. After all, if a bot generates consistent profits, why would it ever stop? However, the truth is that no trading bot can remain permanently profitable without updates, monitoring, and adjustments. This article explores why bots do not work forever and what you need to do to maintain long-term success with automation. Why Bots Do Not… Read more
In the trading world, building a personal brand is often seen as a way to gain credibility and legitimacy. Many traders, analysts, and mentors make a concerted effort to establish a strong brand identity through social media, websites, and educational content. However, the question remains: does branding yourself truly make you more legitimate, or is it simply a marketing tool to gain attention and followers? The truth is that branding… Read more
“Break-even trades are failures.” It’s a belief rooted in the obsession with outcome — the idea that if a trade doesn’t make money, it wasn’t worth taking. But in reality, break-even trades are a critical part of professional trading. They protect capital, show discipline, and often reflect solid decision-making in dynamic conditions. Equating break-even with failure reflects a short-term mindset — not the reality of sustainable trading. Let’s explore why… Read more
Many traders mistakenly believe that breakeven trades are failures, feeling frustrated or disappointed when a trade closes without profit. This belief stems from the emotional desire for every trade to be a clear win. However, in professional trading, breakeven trades are not failures — they are important defensive plays that protect capital and manage risk effectively. They are a sign of maturity, discipline, and sound decision-making. The belief that breakeven… Read more
This belief—that it’s okay to break your rules just this once to make back what you lost—is one of the most dangerous myths in trading. Revenge trading is never a reason to break your rules. In fact, it’s a guaranteed path to greater losses, emotional instability, and long-term failure. Let’s explore why discipline must always override emotion, especially after a loss. Revenge Trading Is Emotion, Not Strategy Revenge trading happens… Read more
Many traders believe that breakouts always lead to trends. The thinking is simple: once price breaks above resistance or below support, a strong directional move must follow. However, in reality, not every breakout results in a sustained trend. In fact, many breakouts fail, trapping traders and reversing sharply. Let’s explore the truth about breakouts, why they sometimes lead to trends — and sometimes to false moves — and how to… Read more
The idea that breakouts are always clean in volatile markets is a common misconception. While volatility often leads to strong price movements and the potential for breakouts, volatile markets can be chaotic, and breakouts can be messy and unreliable. In fact, breakouts in high-volatility environments often come with increased risks of false breakouts, whipsaws, and unpredictable price action. Understanding the nuances of breakouts in these conditions is key to making… Read more
The concept of stop-hunting is a popular belief among traders, where it is thought that brokers intentionally manipulate the market to trigger stop-loss orders in order to profit. The idea is that brokers, especially those who are market makers, deliberately push prices to levels where stop-losses are clustered to force traders out of their positions and capture the liquidity. While stop-hunting is a concern for some traders, it is important… Read more
A common belief among traders is that brokers make money when traders lose. While this is true in certain cases, particularly for market makers who act as the counterparty to trades, the situation is more nuanced than simply stating that brokers profit from traders’ losses. Brokers, especially those that are ECN (Electronic Communication Network) or STP (Straight Through Processing), operate differently and do not profit directly from whether traders win… Read more
Brokers hate scalpers? is a common misconception that can discourage traders from using scalping strategies. While it’s true that some brokers may impose restrictions on scalping due to the nature of the strategy, not all brokers have a negative view of scalpers. In fact, many brokers offer accounts and conditions specifically designed to cater to scalpers. This article will explore why some brokers may have issues with scalping and what… Read more
Some traders believe that brokers manipulate price feeds constantly — that brokers rig the charts, delay prices, or create fake spikes to cause losses. While manipulation was a real problem with certain unregulated brokers in the past, serious, regulated brokers today operate under strict rules and scrutiny. Price manipulation is not widespread among reputable firms, though it can still happen in shady corners of the trading world. Let’s explore the… Read more
“Brokers move the market.” It’s a common suspicion among retail traders, especially after experiencing stop-outs or sharp intraday moves. But the truth is, most brokers do not and cannot move the global market. While certain practices may affect order execution or spreads, especially with low-quality brokers, the idea that brokers control market price is largely a myth — especially in well-regulated environments. Let’s break down what brokers actually do, and… Read more
Leverage is one of the most misunderstood concepts in trading. Some critics argue that brokers who offer high leverage are inherently scamming traders — luring them into risky positions that ultimately blow their accounts. The idea suggests that leverage is a trap, and that any broker offering it must have ulterior motives. But is this true? Not entirely. While leverage can be misused — and some brokers do exploit it… Read more
The bull flag is a popular chart pattern that traders often associate with bullish continuation. It typically forms during an uptrend and is characterised by a sharp price rise followed by a consolidation or slight pullback that resembles a flag on the chart. The pattern suggests that after a brief pause, the price is likely to continue moving higher, following the direction of the initial rally. However, while bull flags… Read more
It’s a common myth that if you’re truly passionate, you won’t burn out. But the truth is: burnout can happen precisely because you care deeply. In trading, passion without balance often leads to overwork, emotional fatigue, and self-imposed pressure—all of which can drain even the most committed trader. Let’s explore why burnout doesn’t mean you lack passion—and how to recover without giving up. Burnout Comes From Overdrive, Not Disinterest You… Read more
In the world of trading, you’ll often hear the claim—“Buy this course and shortcut your way to success.” It’s an attractive idea. With so many paid programmes promising quick results, it’s easy to believe that simply purchasing a course will fast-track your journey. But here’s the truth: buying a course can accelerate your learning, but it does not guarantee success. Let’s unpack why. Courses Provide Knowledge—Not Mastery A quality trading… Read more
Candlestick patterns are widely used in trading as they provide valuable insights into market sentiment and potential price movements. Many traders believe that candle patterns work the same on all timeframes, assuming that the patterns hold the same predictive power regardless of whether they appear on a 1-minute chart or a daily chart. While candlestick patterns are based on human psychology and price action, their effectiveness can vary significantly depending… Read more
Candlestick patterns have long been a popular tool for traders, used to predict potential market movements based on the shapes and formations of candlesticks on a price chart. However, there is a common belief that candlestick patterns are useless without indicators. Many traders assume that to increase the effectiveness of candlestick patterns, they must be used in conjunction with technical indicators such as Moving Averages, RSI, or MACD. While indicators… Read more
It is a common belief among new traders that candlestick patterns never fail. Many learn that patterns like bullish engulfing, hammer, or shooting star always predict the next market move. While candlestick patterns are powerful tools for interpreting price action, expecting them to work perfectly every time is unrealistic. Like all technical signals, candlestick patterns can and do fail. Let’s explore how candlestick patterns work, why they sometimes fail, and… Read more
Many traders believe that central bank decisions always follow expectations, trusting market consensus forecasts when preparing for interest rate announcements or monetary policy updates. While central banks often try to signal their moves clearly, they do not always act exactly as the market expects. Surprises happen — and when they do, they can cause massive, immediate volatility in forex, bond, and equity markets. The belief that central bank decisions always… Read more
“Central bank decisions are always predictable.” It’s a belief that tempts many traders into overconfidence — especially during times of policy stability. While central banks often signal intentions through speeches and forward guidance, the reality is that their actions are not always predictable. In fact, markets are frequently caught off guard by unexpected rate moves, shifts in tone, or changes in inflation outlooks. Let’s explore why central bank decisions can… Read more
Some inexperienced traders might believe that central bank statements can be ignored, thinking that markets move more on economic data releases or technical factors. However, this view can be costly. In reality, central bank statements are among the most powerful influences on financial markets, especially in forex trading. They provide crucial insights into future monetary policy, economic outlooks, and risk sentiment. Let’s dive into why ignoring central bank communications can… Read more
A common belief among some traders is that central banks always control forex prices. It is true that central banks play a major role in shaping currency values through monetary policy decisions, interest rate adjustments, and direct market interventions. However, they do not — and cannot — control forex prices at all times. Currency markets are vast, decentralised, and driven by a complex mix of forces beyond just central banks.… Read more
Some traders mistakenly believe that central banks have no impact on commodities, thinking their influence is limited to currencies, interest rates, or bonds. But this is a myth. The truth is: central banks have significant, indirect but powerful influence on commodity markets — particularly through monetary policy, interest rates, and currency dynamics. Commodities like gold, oil, and industrial metals are deeply connected to the macroeconomic environment shaped by central bank… Read more
Changing a system means failure? is a belief that can trap traders into rigid thinking and prevent them from adapting to evolving markets. While constantly changing systems without discipline is a sign of trouble, strategic adjustments based on evidence are often a mark of growth, not failure. In trading, flexibility combined with a strong foundation is crucial for long-term success. This article explores why changing a system does not mean… Read more
One of the most common beliefs among traders is that changing strategies ruins consistency. The reasoning behind this is that constantly switching approaches can prevent a trader from building a long-term, disciplined system. While it is true that constantly flipping strategies without proper evaluation or understanding can lead to inconsistency, there are situations where adjusting or refining your strategy can actually improve your overall consistency. The key is not changing… Read more
Chart patterns like head and shoulders, triangles, flags, and double tops are widely taught as reliable signals — and it’s often said they work the same way in all markets. While it’s true that price patterns reflect human behaviour, the belief that chart patterns are completely universal across all markets is a myth. In practice, patterns can vary in reliability depending on the market type, asset class, liquidity, and volatility.… Read more
Chart patterns, such as head and shoulders, triangles, double tops/bottoms, and flags, are valuable tools in technical analysis for predicting future price movements. However, trading chart patterns without context can be a risky approach. The effectiveness of chart patterns is heavily influenced by the market environment in which they form. While patterns themselves can offer insight into potential price direction, they should always be analysed in the broader context of… Read more
It’s commonly said that Christmas week is untradable — that the markets go dead, volume disappears, and price action becomes too unpredictable to justify trading. While it’s true that market conditions change significantly during the holiday season, the idea that the week is completely untradable is a myth. Christmas week is tradable — but only with the right expectations, strategy, and discipline. Why traders believe Christmas week is untradable 1.… Read more
The idea that classic charting — the study of traditional chart patterns (like head and shoulders, triangles, and double tops/bottoms) — is obsolete has become a debated topic among traders. Some believe that the advent of modern technical tools, algorithms, and advanced indicators has rendered older methods outdated. However, classic charting still holds relevance and continues to be a valuable tool in technical analysis when used appropriately. Let’s explore why… Read more
One of the biggest misconceptions among aspiring fund managers or prop traders is the belief that managing client accounts carries no emotional impact — that since it’s not your own money, you can remain completely objective. But this couldn’t be further from the truth. In reality, managing other people’s money introduces intense emotional pressure — from fear of failure, to the weight of trust, to the constant need to meet… Read more
Many traders believe that clients simply can’t handle drawdowns — that as soon as performance dips, investors panic, pull their capital, or question the strategy. This creates the myth that clients never understand drawdowns. But this isn’t entirely true. While some clients may react emotionally to losses, many can understand and accept drawdowns — if they’re properly educated, prepared, and managed from the start. The real issue is often not… Read more
Some traders believe that cloud trading is unreliable — thinking that running trading platforms, strategies, or data through cloud services introduces too much risk compared to traditional setups. However, cloud trading can be highly reliable and efficient when used properly, and it is quickly becoming a major part of professional trading infrastructure. Like any technology, it comes with risks, but when managed carefully, it offers major advantages over relying solely… Read more
It’s easy to fall into the trap of seeking validation—especially in trading communities or social media circles. When someone agrees with your trade, it feels reassuring. When they don’t, it can make you second-guess everything. But here’s the truth: comments from others do not validate your trades. Only your process can. Let’s break down why external opinions are often misleading—and how to build conviction from within. Trading Is Personal, Not… Read more
The concept of commission-free trading accounts is appealing to many traders. Brokers that offer commission-free accounts often promote the idea that traders can save money and trade more profitably without paying fees on each trade. While this can be an attractive feature, the reality is that commission-free accounts do not always mean that there are no hidden costs. These accounts may come with other fees, wider spreads, or other charges… Read more
The appeal of commission-free accounts is strong for many traders. These accounts promise to eliminate the usual commission fees that brokers charge per trade, providing a more cost-effective way to trade. However, the reality is that commission-free trading doesn’t mean there are no hidden costs. Brokers often make up for the lack of direct commission fees by increasing other charges or adjusting certain conditions. It’s crucial for traders to understand… Read more
There’s a common belief that commodities — like gold, oil, copper, or wheat — are only suitable for long-term investors looking to hedge against inflation or diversify portfolios. This leads to the myth that commodities are for investors, not traders. But this is far from true. Commodities are highly liquid, technically responsive, and heavily influenced by macro trends, making them ideal for active traders. In fact, many of the world’s… Read more
Many traders believe that commodities require special strategies — that you can’t trade gold, oil, or wheat the same way you’d trade forex pairs or stock indices. While it’s true that commodities have unique characteristics, the idea that they demand entirely separate strategies is a myth when taken too far. The reality is: core trading principles apply across all asset classes, but commodities do require adaptations in risk management, timing,… Read more
Return on Investment (ROI) is one of the most quoted metrics in trading, and at first glance, it seems logical to compare strategies based purely on their ROI. After all, higher returns mean better performance — right? Not quite. While ROI is an important part of evaluating a strategy, using it in isolation can lead to dangerous misconceptions and poor decision-making. This article breaks down why ROI alone is not… Read more
Compounding — increasing your position size as your account grows — is often seen as the smarter, more advanced method compared to fixed lot sizing. Over time, it’s true that compounding can generate significantly higher returns, especially in trending markets. But the idea that compounding always beats fixed lot sizing is a myth. In some conditions, fixed lot sizing can actually be safer, more stable, and better suited to certain… Read more
Some traders and investors question whether compounding doesn’t work, especially after experiencing slow or inconsistent growth in their accounts. Compounding is the process of earning returns not just on the original capital but also on the accumulated profits. While it may feel slow in the beginning, over time, compounding creates powerful, exponential growth. To dismiss it as ineffective is to misunderstand how real wealth is built in trading and investing.… Read more
In the world of business, investing, and trading, the phrase “Confidence = profit?” raises a powerful question. Does having confidence really lead to financial success? The answer isn’t a simple yes or no — it lies in understanding how confidence works, how it impacts decision-making, and what separates productive self-belief from destructive overconfidence. In this article, we unpack whether confidence really does equal profit and under what conditions it becomes… Read more
The idea that confidence can replace a trading system is a dangerous myth in the world of trading. While confidence is crucial for executing trades effectively and managing risk, it cannot replace the need for a solid, tested trading system. A confident trader who lacks a clear, well-defined strategy is likely to make impulsive decisions, ignore proper risk management, and ultimately experience inconsistent results. True confidence comes from executing a… Read more
The belief that confidence comes from winning is a common misconception in the world of trading. While winning trades can certainly boost a trader’s confidence in the short term, true confidence in trading is built on a solid foundation of strategy, risk management, discipline, and emotional control. Confidence that solely stems from winning is fragile because it relies on external factors, such as market conditions and luck. Confidence based on… Read more
Many traders mistakenly believe that confidence equals more risk — that feeling sure about a trade justifies increasing position size or taking bigger bets. While confidence is important for execution, it should never dictate how much risk you take. In fact, professional traders maintain consistent risk management regardless of how confident they feel about a particular setup. The belief that confidence equals more risk confuses emotional certainty with strategic discipline,… Read more
A common belief among traders is that confidence increases as your trading account size grows. The reasoning behind this is that a larger account provides more capital to withstand losses, take on larger positions, and make bigger profits, which in turn might boost a trader’s confidence. While it’s true that a larger account gives you more room for risk, confidence in trading comes from understanding your strategy, managing risk effectively,… Read more
In trading—and in life—confidence is often mistaken for certainty. Many believe that being confident means always having an opinion about where the market is going. But in truth, real trading confidence has little to do with constant predictions—and everything to do with being comfortable with uncertainty. Let’s break down why not always having an opinion is a sign of true confidence in trading. Markets Are Unpredictable by Nature No trader,… Read more
“Confidence is built through social validation.” It’s a belief that many carry — that recognition from others is what fuels self-belief. And while external validation can encourage or reinforce confidence temporarily, true trading confidence is built from within. It comes from evidence, repetition, and discipline — not from likes, praise, or performance comparison. In trading, where your results are private and your challenges personal, relying on social validation leads to… Read more
The idea that confidence is emotionless can be misleading. Confidence is, in fact, an emotion — but it’s a positive and empowering emotion that can greatly benefit traders when applied correctly. However, while confidence plays a significant role in trading, it needs to be balanced with emotional control and discipline. Let’s explore what confidence really is in the context of trading and why it’s not about being emotionless, but about… Read more
Confidence is a critical trait for successful traders, but it doesn’t automatically guarantee greater discipline. While confidence can help you execute your trades with conviction, discipline is a separate quality that requires a structured approach, emotional control, and the ability to stick to a trading plan despite market fluctuations. True discipline in trading is cultivated over time, with consistency and adherence to risk management principles — and confidence can enhance… Read more
A common misconception in trading is that confidence gives you permission to take more risk. The idea is that once you’re confident, you can trade bigger, push harder, and expect larger rewards. But in truth, real trading confidence isn’t about taking bigger risks—it’s about managing risk better. Let’s unpack why true confidence leads to more control, not more exposure. Confidence Without Risk Control Is Just Arrogance When traders mistake confidence… Read more
Some traders mistakenly believe that confidence means trading more often — that if you are truly confident, you should be constantly active in the markets. However, real trading confidence is not about taking more trades; it is about waiting patiently for the right setups and acting decisively when they appear. Professional traders understand that confidence is shown through discipline, not through frequency. Let’s explore the difference between real trading confidence… Read more
The belief that confident traders never hesitate is a common misconception. While confidence in trading is crucial, it is natural and healthy to hesitate occasionally, especially in uncertain market conditions. Hesitation doesn’t mean lack of confidence; rather, it can be a sign of caution, reflection, and adherence to a well-thought-out strategy. Confident traders understand the importance of timing and discipline, and they hesitate when necessary to avoid impulsive decisions and… Read more
Many traders believe that consistency in trading is directly related to having a high win rate. The idea is that the more trades you win, the more consistent and successful you are. While win rate is an important metric, it is not the sole measure of consistency or profitability in trading. In fact, a high win rate alone does not guarantee consistent profits. The true consistency in trading comes from… Read more
Consistency means daily profit? is a misunderstanding that many new traders bring into the market. The idea of earning a fixed amount every day sounds appealing, but real-world trading does not work like that. True consistency in trading is not about making money every single day — it is about sticking to a proven process that generates positive results over time. This article explains the real meaning of consistency and… Read more
The idea that consistency in trading means only having green days is a common misconception. Many traders, especially beginners, equate consistency with profitability — believing that if they are consistent, they should always be in the green. However, true consistency in trading is not about always having profitable days, but about following a disciplined approach, sticking to a strategy, and managing risk effectively, regardless of the outcome of individual trades.… Read more
Making consistent profits in trading is a significant achievement — one that takes time, discipline, and patience. But the idea that consistent profits automatically make you an expert is a bit of a stretch. While consistent profitability is one of the strongest indicators of trading skill, true expertise goes beyond just results. It includes process mastery, adaptability, risk control, and a deep understanding of why your strategy works — not… Read more
Consolidation — when price moves within a tight range and volatility contracts — is often seen as a signal that a breakout is coming. While consolidation can lead to breakouts, the belief that it always does is misleading. In reality, not all consolidations result in explosive moves, and many simply continue sideways, expand into wider ranges, or fake out traders before reversing. Breakouts are common, but not guaranteed — and… Read more
Some traders believe that copy trading guarantees profits — thinking that by simply copying the trades of a successful trader or algorithm, they can achieve automatic success without needing to learn trading skills themselves. However, while copy trading can offer opportunities, it does not guarantee profits, and it carries real risks that many beginners underestimate. Like all forms of trading, success depends on careful selection, management, and understanding of the… Read more
One of the main appeals of copy trading is that it offers a more hands-off approach to the markets. By following the trades of experienced traders, you don’t have to worry about developing your own strategy, analyzing the markets, or managing the psychological pressures that often come with making trading decisions. But does this mean that psychology is no longer a factor in your trading journey? The truth is that… Read more
In the search for trading mastery, many believe that courses guarantee success — that if you just buy the right one, your profits are inevitable. This belief is often fuelled by marketing promises, success stories, and the idea that education equals results. But the truth is: no course guarantees success. Courses provide structure, knowledge, and tools, but your discipline, execution, and mindset are what turn learning into profit. Trading is… Read more
It’s a common belief that crude oil prices only move with supply data — especially reports like US crude inventories or OPEC production figures. While supply data is a major factor, the idea that oil only moves based on supply is a myth. In reality, crude oil is influenced by a wide range of factors, including demand outlook, macroeconomic sentiment, geopolitical risk, and even currency movements. Oil is one of… Read more
The volatility and hype surrounding crypto have led many to claim that crypto is only for gambling — that buying tokens is no different from spinning a roulette wheel. While some traders do treat crypto like a casino, the belief that the entire crypto space is nothing more than gambling is a myth. In reality, crypto is a rapidly evolving financial system that supports investment, innovation, and utility across a… Read more
A common misconception in the trading world is that crypto markets are purely speculative — and that fundamentals don’t matter. This belief has led to the myth that crypto markets are immune to fundamentals. While short-term moves are often fuelled by hype, social media, and sentiment, the long-term trajectory of most crypto assets is increasingly shaped by real-world fundamentals — including utility, network activity, macroeconomic influences, and adoption rates. This… Read more
The cup and handle pattern is a well-known chart pattern in technical analysis that traders use to predict bullish breakouts. It resembles the shape of a tea cup, where the cup forms as the price makes a rounded bottom, followed by a handle, which represents a consolidation or slight pullback before the price breaks out to the upside. This pattern is typically seen as a bullish continuation pattern and is… Read more
Curve fitting improves strategy? is a common misconception that many traders encounter when developing or refining their trading systems. While it might seem logical to optimise a strategy to perform exceptionally well on historical data, the truth is that curve fitting can actually undermine the effectiveness of a trading strategy in live markets. This article explores what curve fitting is, why it can be detrimental, and how to avoid it… Read more
Some traders believe that curve fitting is the same as optimisation, thinking that tuning a strategy’s parameters to perform better on past data is always beneficial. However, curve fitting and optimisation are not the same. While optimisation is a necessary part of refining a trading strategy, curve fitting goes too far — tailoring a system so tightly to historical data that it loses the ability to perform in live, unpredictable… Read more
It’s tempting to believe that you must hit your daily trading targets—as if success is measured one day at a time. But in reality, forcing daily targets often leads to overtrading, rule-breaking, and emotional pressure. In trading, the best results come from consistency in process, not daily profit benchmarks. Let’s break down why daily targets are often harmful—and how to reframe them for sustainable success. The Market Doesn’t Operate on… Read more
The debate between day trading and swing trading often sparks strong opinions, with many traders wondering if one approach is inherently more advanced than the other. Day trading involves entering and exiting positions within the same day, while swing trading typically involves holding positions for several days or weeks to capture medium-term trends. Some traders believe that day trading is more advanced than swing trading, citing the fast-paced nature of… Read more
“Day trading is more profitable than swing trading.” It’s a belief rooted in the allure of fast money — the idea that rapid-fire trades and daily wins will compound faster than holding positions for days or weeks. But while day trading can be profitable, it is not inherently more profitable than swing trading. In fact, the most profitable approach depends on your edge, execution, psychology, and capital. Let’s explore the… Read more
Some traders believe that day trading is the only real trading — that unless you are opening and closing positions within the same day, you are not a “true” trader. However, this belief is not only incorrect, it ignores the many other professional trading styles that consistently generate wealth. Day trading is just one of several legitimate approaches to the markets, each suited to different personalities, goals, and market conditions.… Read more
It’s widely assumed that December is a low-volume month, with traders stepping away for the holidays and markets becoming slow and directionless. While this is partially true, especially in the final weeks, the belief that all of December is low-volume or uneventful is a myth. In reality, December often includes both periods of quiet and bursts of high activity. Let’s break down what actually happens in December—and how smart traders… Read more
Demo accounts are always accurate? is a myth that can create false confidence among new traders. While demo accounts are extremely useful for practising strategies, learning platforms, and building discipline, they do not perfectly replicate live market conditions. Differences in execution, slippage, spreads, and emotional pressure mean that what happens in a demo account can differ significantly from real-money trading. This article explores the limits of demo account accuracy and… Read more
Demo accounts aren’t realistic? is a common criticism among traders who have struggled to transition from practice to live markets. While demo accounts are not perfect replicas of real trading conditions, they are still a vital training ground for mastering strategies, building discipline, and understanding platforms. The key lies in recognising the limitations of demo trading and adjusting your expectations accordingly. This article explores why demo accounts are both useful… Read more
It’s a common assumption that demo accounts and live accounts will perform equally, since both use real-time market data and have the same trade execution conditions. However, demo accounts and live accounts can have significant differences in performance due to psychological, emotional, and risk-related factors. While demo accounts are a useful tool for practicing and testing strategies without financial risk, they don’t replicate the full experience of trading with real… Read more
Many traders believe that demo and live trading are exactly the same — thinking that if they succeed on a demo account, they will automatically succeed when they switch to live trading. While demo trading is valuable for skill development, there are critical differences between demo and live trading, especially around psychology, execution, and emotional discipline. Let’s explore why demo trading is important but different, what changes when you go… Read more
Demo profits = real-world success? is a common but dangerous assumption among traders who mistake simulated performance for live trading mastery. While making profits in a demo account shows that a strategy has potential, it does not automatically guarantee success when real money is involved. Live trading introduces emotional pressures, execution challenges, and psychological hurdles that demo environments cannot fully replicate. This article explores why demo profits must be interpreted… Read more
Some traders believe that demo testing is a waste of time, thinking that real trading only starts when real money is on the line. While it is true that trading real money introduces emotions that demo trading cannot fully replicate, dismissing demo testing is a huge mistake. Demo trading is a critical step in building skills, testing strategies, and preparing for the psychological and technical demands of live trading. The… Read more
Demo trading creates bad habits? is a concern often raised by traders who misunderstand the purpose of practice accounts. While it is true that poor demo trading habits can carry over into live trading, demo trading itself is not the problem — the issue lies in how it is approached. When used properly, demo trading builds the essential skills and discipline required for consistent success. This article explores how to… Read more
Demo trading doesn’t improve discipline? is a common misconception among traders who underestimate the power of structured practice. While it is true that demo trading lacks the emotional intensity of risking real money, it can absolutely build discipline — if approached correctly. Treating demo trading seriously is one of the best ways to develop the habits, routines, and decision-making skills needed for long-term success. This article explores how demo trading… Read more
Demo trading is the same as live trading? is a belief that misleads many traders into underestimating the challenges of transitioning to real-money markets. While demo trading offers a valuable foundation for learning strategies, building discipline, and mastering platforms, it cannot replicate the full emotional, psychological, and execution realities of live trading. Treating demo and live trading as identical can lead to false confidence and costly mistakes. This article explores… Read more
In trading, detachment is often referred to as the ability to separate your emotions from your decisions, maintaining a calm and rational mindset regardless of market conditions. However, some traders confuse detachment with boredom — believing that staying emotionally neutral means becoming disinterested or disengaged with the process. In reality, detachment does not equal boredom. Instead, it is about maintaining a clear, disciplined approach without letting emotions like excitement or… Read more
Directional bias — the belief or expectation that a market is more likely to move in one direction (bullish or bearish) — is a key part of many trading strategies. But does it work in all market conditions? No, it doesn’t. While directional bias is a useful tool in trend-driven markets, relying on it blindly in all conditions can lead to costly mistakes. To succeed long term, traders must learn… Read more
Discipline = low risk only? is a misconception that can lead traders to misunderstand the importance of risk management and how it plays a role in achieving consistent profitability. While low risk is a crucial aspect of disciplined trading, discipline encompasses much more than just minimizing risk. A well-rounded approach to risk management, including setting appropriate position sizes, adhering to strategy, and managing emotions, is what truly defines disciplined trading.… Read more
Discipline is only needed for large accounts? is a misconception that can lead traders to believe that discipline is optional or less important when trading smaller amounts. In reality, discipline is the cornerstone of successful trading, regardless of account size. Whether you are managing a small or large account, maintaining consistent risk management, sticking to a trading plan, and avoiding emotional decision-making are essential for long-term success. This article explores… Read more
Discipline means avoiding all emotions? is a common misunderstanding in trading. While emotional control is crucial to successful trading, completely avoiding or suppressing emotions is neither practical nor desirable. Emotions are a natural part of the trading process, and the key to success lies in managing them rather than eliminating them entirely. This article explores the role of emotions in trading and how discipline is about controlling emotions, not avoiding… Read more
Discipline means never losing? is a dangerous misconception that many new traders believe when they first start their journey. Discipline is indeed one of the most important qualities for a successful trader, but it does not eliminate the reality of losses. Even the most disciplined and skilled traders experience losing trades, drawdowns, and setbacks. This article explains the true meaning of discipline in trading and why it is about managing… Read more
Many traders join Discord communities hoping to improve their results. The assumption is that more eyes on the market equals more accuracy. While Discord trading rooms can offer support, education, and new ideas, they don’t automatically improve accuracy—and can actually hurt it if used the wrong way. Let’s explore how to get value from trading rooms without letting them distort your edge. The Pros of Trading Rooms When used correctly,… Read more
In trading circles, discretion often gets a bad reputation. Many believe that discretionary trading — where the trader makes decisions based on judgement rather than fixed rules — is just another word for randomness. This leads to the idea that systematic trading is the only path to consistency, while discretion is unreliable, impulsive, or even dangerous. But is that really true? This article explores why discretion is not the same… Read more
Some traders believe that diversification doesn’t matter in trading, thinking that if they focus on mastering a single asset or strategy, they can achieve consistent profits without spreading risk. However, while specialisation has its advantages, ignoring diversification altogether leaves traders dangerously exposed to unexpected events, market shifts, and drawdowns. Diversification, when applied wisely, strengthens resilience and improves long-term trading stability. Let’s explore why diversification matters in trading, how it works,… Read more
In the world of trading, terms like DMA (Direct Market Access) and ECN (Electronic Communication Network) are often used interchangeably, leading many traders to believe that DMA and ECN are the same. However, while there are similarities between the two, DMA and ECN are not exactly the same thing. Both provide traders with direct access to liquidity and market participants, but they do so in different ways and have distinct… Read more
In the world of trading, credibility is essential. Traders, mentors, and signal providers often rely on testimonials to establish trust and showcase their expertise. However, the question remains: do you need testimonials to be credible, or can you prove your credibility in other ways? While testimonials can certainly enhance your reputation, they are not the only measure of credibility. Real credibility is built on consistent performance, transparency, and demonstrated expertise.… Read more
A double bottom is a well-known chart pattern that traders often use to predict a trend reversal. It forms after a downtrend and is characterized by two distinct lows separated by a moderate peak, indicating that the market has tested a support level twice and failed to break it. Many traders view the double bottom as a bullish reversal pattern that suggests a change in market direction from bearish to… Read more
The double top is a widely recognised chart pattern that appears after an uptrend and is commonly interpreted as a bearish reversal signal. However, the belief that double tops always signal reversals is a myth. While they can be powerful when confirmed properly, double tops are not guaranteed to reverse price — and many turn out to be temporary pauses, fakeouts, or even continuation setups depending on the market context.… Read more
“Doubling your account monthly is realistic.” It’s a bold claim — and one often used to sell dreams, courses, or quick-fix strategies. But in truth, doubling your account every month is extremely rare, highly unsustainable, and almost always involves excessive risk. Professional traders focus on longevity, consistency, and capital preservation, not explosive short-term returns. Let’s explore why expecting monthly doubles is not only unrealistic — it’s dangerous. Consistent compounding is… Read more
Many traders believe that doubt equals weakness. They see hesitation or second-guessing as a lack of confidence or skill. But in reality, doubt isn’t a weakness—it’s a strength when used the right way. It’s a sign that you’re thinking critically, staying self-aware, and respecting the market. Let’s explore why smart doubt makes you a stronger trader—not a weaker one. There’s a Difference Between Doubt and Paralysis The first makes you… Read more
A drawdown refers to the decline in a trading account’s value from its peak to its trough during a specific period. Many traders believe that drawdowns are a sign of inconsistency or poor strategy. While significant or prolonged drawdowns can indeed indicate issues in a trading approach, the idea that drawdowns are always a sign of inconsistency is misleading. Drawdowns are a natural part of trading and are inevitable in… Read more
Drawdowns mean you’re a bad trader? is a fear that haunts many traders when they experience periods of loss. It is easy to associate a declining account balance with poor skill or failure. However, the reality is very different. Drawdowns are a normal, even inevitable, part of trading — experienced by both beginners and seasoned professionals. This article explores why drawdowns happen, what they really mean, and how to manage… Read more
Many traders believe that early morning is always optimal for trading, assuming that the first few hours after the market opens are the best time to capture profitable opportunities. While early morning trading can offer unique advantages, especially during the overlap of major market sessions, it is not the best time for every trader or strategy. The key to trading success lies in understanding your trading style, the specific market… Read more
Many traders believe that ECN brokers always offer the best trading conditions — assuming that if a broker labels itself “ECN,” it automatically means tighter spreads, better execution, and greater transparency. While ECN (Electronic Communication Network) brokers can offer advantages, the reality is that not all ECN brokers are created equal, and the term is often used loosely in marketing. Choosing a broker should involve more careful evaluation than just… Read more
Some traders believe that economic calendars are unreliable, thinking they provide little real value or that market reactions to news are too unpredictable to bother tracking events. However, while it is true that markets sometimes react differently than expected, economic calendars are a critical tool for professional traders. They help anticipate volatility, manage risk, and prepare for major market-moving events. Let’s explore why economic calendars are essential, how to use… Read more
Many traders believe that a trading edge comes solely from having a good strategy — a repeatable pattern, signal, or system that tells you when to enter and exit the market. While strategy is certainly important, a real trading edge is much more than just a setup. Focusing only on strategy ignores critical elements like risk management, psychology, execution, and market context — all of which determine whether an edge… Read more
In trading, the idea of finding a “holy grail” edge is seductive. Many believe that edges are buried in the market, just waiting to be discovered — like secret codes, magical indicators, or patterns only a few elite traders can see. This leads to the belief that edges are found, not developed. But this is a myth. While some market inefficiencies can be identified, lasting edges are rarely found —… Read more
One of the most dangerous assumptions in trading is the belief that once you discover an edge, it will work forever. This leads to complacency, overconfidence, and — eventually — drawdowns that traders aren’t prepared for. The truth is: edges are not permanent. Markets evolve. Volatility shifts. Liquidity dries up. What worked yesterday may fail tomorrow. In fact, a key trait of successful traders is knowing how to adapt their… Read more
“Education is only needed once.” It’s a belief that assumes trading knowledge is a box you check off — one course, one book, one phase — and you’re done. But in reality, trading is a skill that evolves with you, the market, and global conditions. What works today may not work tomorrow. And more importantly, you grow as a trader through cycles, not milestones. Let’s explore why education is an… Read more
There’s a widely held belief that election years are bullish for markets, especially in the U.S. context. While historical data shows that stock markets often perform well during election years, it’s not a guarantee. In reality, market direction in election years depends on broader economic conditions, policy expectations, and investor sentiment—not just the electoral calendar. Let’s break down the truth behind the election-year bullishness myth. The Historical Pattern Historically, major… Read more
It’s a common belief that elections always move currency markets, especially in major economies like the United States, the UK, or Eurozone nations. While elections can lead to increased volatility and major shifts in forex prices, the idea that they always cause movement is a myth. Currency reaction to elections depends on factors like policy uncertainty, market expectations, and macroeconomic context — not the election alone. Why elections can impact… Read more
A common assumption is that elections only affect local markets — that the impact of a national vote is limited to the country holding it. While domestic markets are often the most directly influenced, the truth is: elections in major economies can have global effects, especially when they influence trade policy, monetary direction, geopolitical stability, or risk sentiment. In today’s interconnected world, elections can ripple through currency, equity, bond, and… Read more
Emotional attachment to assets in trading is often interpreted as a sign of belief in the asset’s value or potential. While belief in an asset is important, emotional attachment is a potential hindrance to rational decision-making and effective risk management. In trading, belief should be based on data, analysis, and strategy, not emotion. Emotional attachment to an asset can cloud judgment, leading to overconfidence, overtrading, and an inability to cut… Read more
Emotional detachment is often praised as a hallmark of elite trading — the ability to stay calm, rational, and unaffected by wins or losses. But the idea that emotional detachment alone guarantees profitability is a myth. While managing your emotions is critical, it’s only one part of the equation. Traders who detach emotionally but neglect skill, analysis, or discipline still lose money. True success comes from the integration of mindset,… Read more
“Emotional reactions to losses are weaknesses.” It’s a belief that suggests professional traders must be cold, robotic, and untouched by failure. But in truth, feeling emotion after a loss is completely normal — and even healthy. What matters is not whether you feel emotion, but whether you can manage it. In fact, emotional awareness is a strength. It helps you understand your behaviour, prevent impulsive decisions, and refine your process.… Read more
The phrase “emotional trading” often carries a negative connotation in financial circles — implying recklessness, impulsivity, and a lack of discipline. But is emotional trading always irrational? Not necessarily. While emotion-driven decisions can certainly lead to poor outcomes, it’s important to distinguish between uncontrolled emotional reactions and emotionally informed decision-making. What Is Emotional Trading? Emotional trading refers to making trading decisions based on feelings such as fear, greed, hope, frustration,… Read more
It may seem intuitive that emotionally connecting to your trades would foster patience, but in reality, emotional attachment to trades can actually hinder your ability to remain patient and make rational decisions. While emotions like passion and dedication to trading can be motivating, getting too emotionally involved in your trades often leads to impulsive actions, stress, and poor decision-making. Patience in trading is not about emotional attachment; rather, it’s about… Read more
The idea that emotions are exclusive to losing traders is a myth — and a dangerous one. In reality, every trader, regardless of skill level or success, experiences emotions. What separates consistent winners from those who struggle isn’t the absence of emotion — it’s their ability to manage, understand, and respond to those emotions effectively. Why this myth exists 1. The ‘robot trader’ idealMany traders aspire to be purely logical… Read more
Some traders hope that emotions can be turned off completely — that they can somehow become cold, mechanical decision-makers, unaffected by fear, greed, hope, or frustration. However, the truth is that emotions are part of being human and cannot be entirely switched off. The real goal is not to eliminate emotions, but to manage and control them effectively so they do not interfere with rational, disciplined trading. Let’s explore why… Read more
“Emotions only affect beginners.” It’s a myth that suggests once you’ve got screen time and experience, emotions magically disappear. But in reality, emotions affect all traders — beginners and professionals alike. The difference is not in whether emotions are felt, but how they’re managed. Veteran traders still feel fear, frustration, overconfidence, and doubt — but they’ve built systems and mindsets to stop those emotions from sabotaging their decisions. Let’s explore… Read more
Many traders believe that emotions should be eliminated to succeed. It seems logical: emotions like fear, greed, and frustration often cause mistakes, so removing them altogether must be the solution. However, this belief is both unrealistic and harmful. Emotions are part of human nature and cannot be eliminated. Instead, successful traders learn to recognise, manage, and work with their emotions to maintain discipline and make rational decisions. The idea that… Read more
While it’s natural to expect an equity curve (the graphical representation of your account balance over time) to slope upwards, the reality of trading is much more complex. An equity curve is not guaranteed to always slope upwards, even for profitable traders. Short-term fluctuations, drawdowns, and periods of negative performance are inevitable in trading, and these can lead to temporary downward movements in the equity curve. However, what matters most… Read more
EUR/USD is the most traded currency pair in the world — offering high liquidity, tight spreads, and consistent price action. Because of this, many new traders are told that “EUR/USD is the easiest pair” to trade. While EUR/USD is often beginner-friendly, the idea that it is always the easiest pair is a myth. Like all currency pairs, it has complexities, unique behaviour, and hidden challenges that can catch traders off… Read more
The belief that European traders only trade during London hours is a misunderstanding. While it’s true that the London trading session is one of the most active and important periods for European traders due to its central role in global financial markets, European traders do not limit themselves to just the London hours. In fact, many European traders engage in trading during other sessions, including the New York and Asian… Read more
A common belief among new traders is that you need at least three indicators on your chart to trade effectively. The idea is that the more tools you have, the more “confirmation” you get. But in reality, cluttering your chart with indicators often creates confusion—not clarity. Let’s explore why more indicators doesn’t mean more accuracy—and how to build cleaner, smarter charts. Indicators Are Just Tools—Not Requirements There’s no rule that… Read more
The idea that every losing trade teaches you something new is a comforting belief—especially in the early stages of trading. After all, if you’re going to lose, you want to believe there’s at least a valuable lesson behind it. But here’s the hard truth: not every losing trade teaches something new. In fact, many losing trades just reinforce what you already know but aren’t yet applying consistently. The real lesson… Read more
“Every spike is a manipulation.” It’s a belief often born from frustration — the feeling that markets move violently just to take you out. But while some spikes are indeed driven by liquidity grabs or stop hunts, the truth is that not every sharp move is market manipulation. Many spikes are legitimate reactions to news, order flow, or volatility imbalances. Let’s explore why spikes are part of market structure —… Read more
A widespread myth in the trading world is that every successful trader has perfect discipline — that they never break rules, never feel fear or greed, and never deviate from their plan. This creates unrealistic expectations, especially for beginners who beat themselves up over every misstep. The truth is: no trader has perfect discipline — not even the best. What separates successful traders is not flawlessness, but their ability to… Read more
In the trading world, wins and losses both play significant roles in shaping a trader’s psychology. Winning trades can undoubtedly provide a sense of achievement, boost confidence, and reinforce a trader’s belief in their strategy. However, the idea that every winning trade automatically improves your trading psychology is not entirely accurate. In fact, relying solely on wins to boost your mindset can create certain pitfalls that may harm your long-term… Read more
At first glance, excitement and confidence might seem like the same thing — both create a sense of energy and anticipation before placing a trade. But in reality, excitement does not equal confidence. In trading, the difference between the two can be the line between discipline and impulsiveness. While confidence is grounded in preparation and clarity, excitement is often emotional and reactive, and it can lead traders to overlook risk,… Read more
In the trading education space, many believe that high price tags signal deception. The thinking goes: “If someone’s charging thousands for a course, it must be a scam.” This belief is understandable — especially in an industry riddled with overhyped promises and fake profits. But while high cost can sometimes indicate a scam, expensive doesn’t automatically mean dishonest. In fact, some of the most valuable trading education comes at a… Read more
Expensive mentorship is better? is a common question among traders looking for guidance in their trading journey. While it’s true that some high-cost mentorship programs offer valuable content and personal coaching, the price tag alone doesn’t necessarily indicate the quality of the mentorship. In fact, expensive mentorship programs don’t always guarantee better results, and it’s important to carefully evaluate what’s being offered before making a decision. This article explores whether… Read more
Some traders argue that experience always beats education — believing that time spent in the markets matters more than formal learning or structured training. While experience is vital, education is equally essential. The best traders combine both: they accelerate their learning through structured education while gaining practical wisdom from real-world experience. Let’s explore why education and experience must work together, how each contributes to success, and why relying on experience… Read more
Experience beats rules? is a misconception that can lead even talented traders into dangerous territory. While experience is critical for developing intuition, judgment, and emotional resilience, it should never replace the need for clear, disciplined trading rules. In fact, the most successful traders combine their experience with strict rule-following to maintain consistency, control risk, and adapt effectively to changing market conditions. This article explores why both experience and rules are… Read more
“Experienced traders don’t make mistakes.” It’s a flattering illusion — one that paints trading veterans as flawless, robotic decision-makers. But the truth is, even the most experienced traders make mistakes. The difference isn’t that they avoid errors entirely — it’s that they make fewer of them, catch them faster, and recover with discipline. Trading is a performance skill, and no performer — no matter how seasoned — is perfect. Let’s… Read more
Failure means you’re not cut out for trading? is a harsh conclusion that many struggling traders come to after experiencing losses. Trading is difficult, and setbacks are inevitable, especially early in the journey. However, failure does not mean you are not suited for trading. In fact, learning from failure is a crucial part of developing the resilience and skill needed for long-term success. This article explores why failure is normal… Read more
Faster internet improves win rates? is a question many traders ask, especially those who trade in fast-paced markets like forex or equities. While a faster internet connection is essential for seamless execution and reducing lag, it does not directly affect your win rate. Success in trading depends on strategy, discipline, risk management, and emotional control — not the speed of your internet. This article explores the role of internet speed… Read more
Many traders hope that fear and greed can be eliminated completely — that with enough experience or discipline, they will no longer feel strong emotions while trading. However, the truth is that fear and greed can never be entirely eliminated. They are part of human nature. What separates successful traders is not the absence of emotion, but the ability to recognise, manage, and control it. Let’s explore why fear and… Read more
In trading, fear is often painted as the enemy — the emotion that causes hesitation, panic-selling, or missed opportunities. But the reality is more balanced. Fear, when properly understood and regulated, can be a powerful ally in risk management. It becomes a problem only when it’s irrational or reactive. In its healthy form, fear helps traders stay alert, cautious, and disciplined — all essential traits for protecting capital. Why fear… Read more
In the world of trading, fear is often seen as a negative emotion that can hold traders back from making rational decisions. Some traders believe that fear should be ignored or suppressed in order to succeed. However, this perspective is flawed. Fear, when understood and managed properly, can be a valuable emotion in trading. Rather than ignoring fear, the key is learning how to use it effectively. Fear is a… Read more
Nervousness is a common emotion in trading — especially before pulling the trigger on a setup. Many traders interpret it as a red flag: a sign they should stay out of the market. But the truth is more nuanced. Feeling nervous doesn’t always mean you shouldn’t trade — it depends on what that nervousness is signalling. Sometimes, it’s a healthy awareness of risk. Other times, it may reflect deeper uncertainty… Read more
Many traders believe that Fibonacci works in trading because it’s based on natural patterns. The logic is that since Fibonacci ratios appear in nature, architecture, and biology, they must also govern price movement. While this idea is compelling, the real answer is more nuanced. Fibonacci levels can be useful in trading—but not because markets are “naturally” bound to them. They work because of collective trader behaviour and self-fulfilling expectation. Let’s… Read more
In trading, many wonder whether Fibonacci works on all timeframes. Fibonacci retracement levels are widely used to identify potential support and resistance areas during price corrections. Some traders apply them to intraday charts, while others use them on daily, weekly, or even monthly charts. But does Fibonacci analysis really hold up equally well across all timeframes? The belief that Fibonacci works on all timeframes is rooted in the idea that… Read more
A common belief in the trading world is that financial qualifications make better traders — that someone with a degree in finance, an MBA, or a CFA charter is more likely to succeed. While qualifications can certainly help build understanding, the idea that they automatically translate into profitable trading is a myth. In reality, trading is a performance skill, not an academic one. Many consistently profitable traders have no formal… Read more
Some traders believe that fixed lot sizes are best — that trading the same lot size on every position simplifies their strategy and keeps trading consistent. While using fixed lot sizes has some advantages, especially for beginners, it is not necessarily the best approach for long-term success. Professional traders typically adjust their lot sizes based on risk management principles, not a fixed number of lots per trade. Let’s explore the… Read more
Some traders believe that flash crashes are predictable — thinking that with the right indicators, models, or market signals, they can foresee these sudden, sharp drops and profit from them. However, flash crashes are, by nature, highly unpredictable, rare, and chaotic events. While certain conditions may make markets more vulnerable to extreme moves, the exact timing, size, and trigger of a flash crash are almost impossible to forecast reliably. Let’s… Read more
A dangerous misconception among traders is that FOMC minutes are useless — that they’re outdated, repetitive, or only relevant to economists and institutions. The reality is quite the opposite: FOMC minutes are one of the most important tools for traders to understand the Federal Reserve’s internal thinking, policy trajectory, and inflation or growth concerns. While they don’t always move markets immediately, they often set the tone for future decisions and… Read more
“Forecast beats always move the market positively.” It sounds logical — if economic data comes in better than expected, the market should rally, right? But in practice, forecast beats don’t guarantee bullish price action. Sometimes the market sells off after positive surprises, and other times it rallies despite weaker numbers. That’s because price doesn’t move on data alone — it moves on expectations, positioning, sentiment, and context. Let’s explore why… Read more
Many new traders and investors believe that forecasts are always accurate, trusting market predictions from analysts, experts, and media sources as if they are guaranteed outcomes. However, forecasting financial markets is incredibly difficult because markets are influenced by countless unpredictable factors. Even the best forecasts are estimates based on probabilities — not certainties. The belief that forecasts are always accurate ignores the dynamic, complex, and often irrational nature of global… Read more
Many traders argue that forex is harder than stock trading. Forex markets are known for their fast pace, 24-hour schedule, and sensitivity to global events, while stock markets can seem slower and more predictable by comparison. However, the truth is more nuanced. Both forex and stock trading have their own unique challenges and advantages, and difficulty largely depends on a trader’s skills, strategy, and preferences. Let’s explore the key differences… Read more
Traders often debate whether forex is harder than stocks, with many claiming that the forex market is more unpredictable, more manipulated, or simply too fast to master. While forex and stocks are fundamentally different markets, the belief that forex is inherently harder is a myth. In reality, each market comes with its own challenges and advantages — and the difficulty depends more on your personality, strategy, and goals than the… Read more
With the rise of Bitcoin, Ethereum, and thousands of digital assets, some traders have started claiming that forex is outdated now that crypto is available. The narrative paints forex as slow, restricted, and old-school — while crypto is positioned as modern, open, and full of opportunities. But the idea that forex is obsolete in a crypto world is a myth. In reality, both markets serve different roles, with unique advantages,… Read more
Many traders — especially those who experience early losses — come to believe that forex is rigged. It is easy to understand why: sharp price reversals, stop-loss hunts, and unexpected volatility can feel unfair. However, while there are instances of bad actors and manipulation in the financial world, the forex market itself is not “rigged” against retail traders. It is a decentralised, global market where massive institutions, governments, and individuals… Read more
Forex is often described as the largest and most liquid financial market in the world — with over $7.5 trillion traded daily. But despite its size and depth, some traders claim that forex is the most manipulated market, citing stop hunts, slippage, price spikes, and historic scandals. While manipulation has occurred, particularly at the institutional level, the idea that forex is inherently more manipulated than other markets is a myth.… Read more
Some traders believe that forward testing isn’t necessary, thinking that if a strategy performs well in backtesting, it should work equally well in live trading. However, this belief is a critical mistake. Forward testing — trialling a strategy in real-time market conditions, usually on a demo or small live account — is essential to confirm that a system can survive and thrive in the ever-changing, unpredictable nature of real markets.… Read more
Many aspiring traders believe that free content is all you need to become successful — thinking that YouTube videos, free articles, forums, and blogs offer enough information to master the markets. While free resources can be incredibly helpful, they are rarely enough on their own to build the deep skills, discipline, and strategic thinking needed for consistent profitability. Let’s explore why free content has value, but also why relying on… Read more
A popular belief in trading circles is that free groups are a waste of time — that unless you’re paying for access, the quality of insight, community, or mentorship will be low. But the truth is: free groups can be extremely valuable — or completely useless — depending on how they’re structured and how you engage. Price doesn’t guarantee quality, and free doesn’t guarantee noise. What matters most is the… Read more
A common belief among traders is that free strategies aren’t profitable. The idea is that if a strategy is available for free, it must be too simple, outdated, or ineffective. However, this belief is not entirely accurate. Many free trading strategies can be highly profitable when applied with skill, discipline, and proper risk management. Profitability depends far more on the trader’s execution than on whether the strategy was free or… Read more
The idea that frequent trading helps you improve your trading skills more quickly is a common belief, especially among newer traders. The logic behind this is that the more trades you make, the more experience you gain, and the faster you’ll learn. However, the reality is a bit more nuanced. In fact, trading too frequently can actually hinder your progress and lead to bad habits and inconsistent results. Improving your… Read more
Many new traders believe that full-time trading is stress-free — that once you leave your job and trade for a living, you will enjoy easy days, full control, and minimal pressure. However, full-time trading can actually be more stressful than a regular job if not approached with the right mindset, skills, and preparation. Trading professionally introduces emotional, financial, and psychological challenges that many underestimate. Let’s explore why full-time trading carries… Read more
Many new investors and traders assume that putting money with a professional fund manager guarantees a stable return. The logic seems sound: fund managers are experts, they follow strict protocols, and they’re paid to preserve capital. But the belief that fund management guarantees stability is a myth. While fund managers may reduce certain risks through diversification and discipline, they cannot eliminate volatility, losses, or market uncertainty. In fact, funds are… Read more
Many new traders believe that fundamentals don’t affect short-term trades, thinking that fundamentals only matter for long-term investors while intraday or swing traders should focus purely on technical analysis. While technical patterns certainly play a major role in short-term trading, fundamentals can and do have powerful, immediate effects even over minutes or hours. Let’s explore why fundamentals are just as important for short-term traders — and why ignoring them can… Read more
The rise of funded trading programs in the trading industry has sparked significant debate. These programs offer aspiring traders the opportunity to trade with capital provided by a funding firm in exchange for a share of the profits. However, some sceptics argue that these programs resemble pyramid schemes, where only the company running the program makes money, while traders are left with little to no profit. While it’s true that… Read more
Funded traders always make more money? is a belief that attracts many traders to proprietary trading firms and funding challenges. While gaining access to more capital can certainly increase the potential for higher earnings, it does not guarantee bigger profits. In fact, being a funded trader introduces new pressures, restrictions, and risks that many traders underestimate. This article explores why funding is not a guaranteed path to greater income and… Read more
At first glance, funded trading — where a trader is given capital by a proprietary firm to trade with — might seem risk-free. After all, you’re not trading your own money, and losses are often absorbed by the firm. But while the financial exposure may not be yours, funded trading is far from risk-free. The risks are simply different — and understanding them is essential if you want to succeed… Read more
Some traders believe that gaps always fill — thinking that whenever a market opens with a price gap, it is inevitable that price will return to “close” the gap before moving on. While gap fills happen often, they are not guaranteed, and treating them as certainties can lead to dangerous trading decisions. In reality, whether a gap fills depends on market context, momentum, and underlying fundamental factors. Let’s explore why… Read more
The British pound (GBP) is widely known for its sharp price swings, especially against major currencies like the USD, EUR, and JPY. Because of this, many traders believe that GBP pairs are always volatile. While it’s true that GBP pairs often experience heightened volatility compared to other majors, the idea that they are always volatile is a myth. GBP volatility depends on market context, macroeconomic conditions, and timing — not… Read more
Many beginners believe that GDP is the only economic data that matters when analysing financial markets. After all, gross domestic product is often described as the most comprehensive measure of a country’s economic health. While GDP is certainly important, focusing solely on it would give traders and investors an incomplete picture of market dynamics. Other economic indicators often have a more immediate or stronger impact on short-term market movements. Let’s… Read more
Some traders mistakenly believe that geopolitical risk doesn’t affect forex, thinking that currency prices move only based on technical analysis or economic data like inflation or employment figures. In reality, forex markets are highly sensitive to geopolitical developments. Political instability, conflicts, elections, and international tensions can all trigger massive and rapid currency fluctuations, often overriding normal market patterns. The belief that geopolitical risk doesn’t affect forex dangerously ignores one of… Read more
A common misconception among traders is that geopolitical risk is priced in instantly — that the moment conflict, political instability, or military tension surfaces, the market fully absorbs the information and adjusts accordingly. While markets can react quickly, the truth is: geopolitical risk is rarely priced in instantly. Instead, it’s often partially priced in over time, as more information becomes available and market participants reassess the probability, scale, and impact… Read more
It’s a common misconception that goal setting is something only entrepreneurs, CEOs, or business owners need to do. But in reality, goal setting is essential for anyone pursuing long-term performance and personal growth—including traders. In fact, traders who don’t set clear goals often drift, overtrade, or stagnate. Let’s break down why goal setting is just as crucial in trading as it is in business—and maybe even more so. Trading Is… Read more
A widely held belief in trading is that gold and the US dollar always move in opposite directions — that when the USD rises, gold falls, and vice versa. While this inverse relationship often holds, the idea that gold always moves opposite to the USD is a myth. In reality, gold is driven by a complex mix of factors — including interest rates, inflation expectations, risk sentiment, and global liquidity.… Read more
Gold is widely known as a safe-haven asset — a store of value during times of financial uncertainty, geopolitical tension, or economic crisis. Because of this, many traders and investors believe that gold always rises during crises. While gold often performs well in turbulent environments, the belief that it always does is a myth. Gold’s reaction to crises depends on the type, scope, and market context of the event, as… Read more
Gold is often labelled a “safe haven” — a protective asset during economic uncertainty and market turmoil. This has led to the widespread belief that gold is the safest asset to trade. While gold is among the most trusted stores of value, the idea that it is always the safest to trade is a myth. Gold can be volatile, manipulated, and sensitive to a wide range of economic and geopolitical… Read more
Good mentors don’t charge money? is a common belief, especially among those new to trading or seeking guidance. While the idea of free mentorship may sound appealing, it’s important to understand that charging for mentorship does not necessarily detract from its value or the mentor’s credibility. In fact, charging a fee can be a sign of professionalism, commitment, and a higher level of expertise. This article explores why a good… Read more
There is a popular myth that good traders don’t feel losses — that true professionals are so emotionally detached that losses mean nothing to them. In reality, even the best traders feel the sting of a losing trade. The key difference is not that good traders are emotionless, but that they manage their emotions effectively. They experience losses like anyone else, but they do not let those feelings control their… Read more
In the world of trading, it is a common belief that green candles mean buy — that is, when a candle on a chart is green (typically indicating a bullish movement), it suggests that traders should buy the asset. While it’s true that a green candle represents an upward movement in price, this assumption oversimplifies the interpretation of price action. Green candles, by themselves, do not necessarily signal a buying… Read more
The phrase “gut feeling has no place in trading” is often echoed in trading communities that value data, discipline, and mechanical execution. The implication is that emotion and instinct are liabilities — that if a decision isn’t rule-based, it’s random or dangerous. But is gut feeling really useless in trading? The truth is more nuanced. While emotional decision-making should be avoided, a well-trained gut feeling — rooted in experience and… Read more
The Hammer candlestick pattern is widely recognised as a potential reversal signal, especially when it forms after a downtrend. With its distinctive shape — a small body at the top of the candle and a long lower wick — the Hammer suggests that the market is rejecting lower prices and buyers are beginning to take control. As a result, many traders believe that Hammer candles always cause reversals, interpreting them… Read more
In the world of trading, there’s often the perception that to be considered a legitimate trader, you must have a dedicated trading office, complete with multiple monitors, high-end equipment, and a professional setup. Many traders believe that having an office space gives them credibility and is a sign of seriousness about their trading career. However, the truth is that having a trading office is not a requirement to be a… Read more
In the age of social media and online trading communities, it’s easy to fall into the trap of believing that the number of followers or subscribers you have is a reflection of the validity and effectiveness of your trading strategy. With many traders and mentors showcasing their strategies to large audiences, it may seem like having a following automatically validates your approach. But does having followers really validate your strategy,… Read more
Having multiple screens gives you an edge? is a belief that has become widespread, especially with the rise of trading videos showcasing massive monitor setups. While multiple screens can offer convenience and improved workflow for some traders, they do not automatically create an advantage. True trading success comes from strategy, discipline, and decision-making — not the number of monitors. This article explores the role of multi-screen setups, who benefits from… Read more
The head and shoulders pattern is one of the most well-known reversal formations in technical analysis. It’s often taught as a “high-probability” setup, leading some traders to believe it’s foolproof — a guaranteed signal that a trend is about to reverse. But the truth is, no chart pattern is foolproof, including head and shoulders. While the pattern can be effective in certain conditions, its success depends on context, confirmation, and… Read more
Many traders believe that hedging eliminates all risk. On the surface, it seems logical: by opening offsetting positions, you can “cancel out” potential losses and protect your account. However, while hedging can reduce certain risks, it does not eliminate risk entirely. Hedging introduces its own set of challenges and trade-offs — and misusing it can sometimes make risk management even more complicated. Let’s explore what hedging really does, what risks… Read more
High leverage is one of the most feared — and misunderstood — concepts in trading. Many believe that using high leverage guarantees account destruction. This belief fuels the mantra: “High leverage always leads to blowing accounts.” But while it’s true that high leverage can increase the risk of loss, it doesn’t cause blown accounts on its own. The real problem isn’t leverage — it’s how traders use it. In this… Read more
One of the most dangerous myths in trading is that high leverage means guaranteed profits. The idea is tempting: with high leverage, even small moves in the market could result in large returns on a small account. However, while leverage can magnify profits, it equally magnifies losses — often leading to rapid account blowouts if not used carefully. High leverage is a powerful tool, but it is double-edged and must… Read more
When browsing through copy trading platforms, it’s easy to be drawn to traders who boast high returns on their profiles. The appeal is clear—high returns suggest successful trading, and copying these traders might seem like a great way to make profits without having to develop your own strategy. However, does a track record of high returns truly equate to a consistent and reliable trader? In reality, the relationship between high… Read more
“High risk equals high reward every time.” It’s one of the most repeated phrases in trading and investing — and one of the most misunderstood. While it’s true that higher risk can lead to higher potential reward, it certainly doesn’t guarantee it. In fact, without a reliable edge and proper risk management, high risk often leads to higher losses, not profits. Let’s explore why this idea needs a more nuanced… Read more
In trading, high volume is often seen as a powerful confirmation tool. The idea is that when volume increases, it suggests strong participation and can confirm the validity of a price movement, making it more likely that the trend will continue. But is high volume always a reliable indicator of market direction? The answer is more nuanced than simply “yes” or “no.” While high volume can be a strong signal,… Read more
Some traders believe that high-frequency trading (HFT) is for everyone — thinking that with the right software or fast internet, anyone can compete in the world of ultra-fast trades. However, HFT is a highly specialised, technology-driven field dominated by large institutions with massive infrastructure, technical expertise, and financial resources. It is not suitable for retail traders, and attempting to engage in it without the proper setup almost always leads to… Read more
When it comes to trading, leverage is an essential tool that allows traders to control a larger position than their initial margin would normally allow. In simple terms, higher leverage means a trader can trade a bigger position with less capital. However, the idea that higher leverage automatically equals a better account is not entirely accurate. While higher leverage may seem appealing because it allows for larger potential profits, it… Read more
It’s a common belief—especially among new traders—that higher leverage leads to better trades. The logic seems simple: more leverage means more buying power, more profit potential, and faster results. But in truth, higher leverage does not improve trade quality—it only increases risk exposure. Let’s break down why leverage magnifies outcomes, not accuracy—and why smart traders use it sparingly. Leverage Doesn’t Improve Trade Setup Quality Leverage has no impact on: A… Read more
In the world of trading, different timeframes serve different purposes. Higher timeframes, such as daily, weekly, or monthly charts, are often seen as slower because they represent longer periods of price action. This can lead some traders, particularly those accustomed to short-term trading like scalping or day trading, to believe that higher timeframes are too slow. However, this perception overlooks the significant benefits that higher timeframes can offer. In fact,… Read more
A popular mantra in investing circles — especially in crypto and stocks — is “just HODL.” This leads to the widespread belief that holding is always better than trading. While long-term holding can yield strong returns in bull cycles, the idea that it’s always the superior strategy is a myth. In reality, holding and trading each have strengths, weaknesses, and appropriate use cases. The right choice depends on your goals,… Read more
A common belief among newer traders is that holding trades overnight is always risky. After all, many unpredictable events can happen outside regular trading hours — economic data releases, political announcements, and market gaps. While it is true that overnight trading carries additional risks compared to intraday trading, it is not inherently dangerous when managed properly. In fact, many professional traders and investors hold positions for days, weeks, or even… Read more
Many traders have heard that Ichimoku Cloud is only for Japanese markets. Given its origins in Japan and its early popularity among Japanese equity and commodity traders, this assumption seems understandable. However, the reality is quite different. Today, Ichimoku is a globally respected trading system used across all major markets, including forex, stocks, commodities, and cryptocurrencies. The idea that Ichimoku Cloud is only for Japanese markets overlooks its universal design,… Read more
At first glance, the Ichimoku Kinko Hyo system can look overwhelming—clouds, lines, crosses, and lagging spans all cluttering the chart. This complexity leads many traders to believe that Ichimoku is too complicated to use effectively. But in reality, Ichimoku is not too complex—it’s just misunderstood. Let’s break down why it appears intimidating, how it actually simplifies decisions, and how traders of all levels can use it with clarity and confidence.… Read more
“Identity is based on your account balance.” It’s a belief that quietly poisons many traders — the idea that your worth, skill, and legitimacy as a trader are tied to the size of your profits or equity curve. But in reality, your trading identity is built on your process, not your P&L. The market doesn’t care who you are — and tying your identity to your results makes you emotionally… Read more
If a bot is free, it’s not good? is a question many traders and investors often wonder about when exploring automated trading options. With so many free bots available online, it is tempting to believe that they offer a shortcut to profits. But is free always a bad sign? In this article, we will dive deep into the reality of free trading bots, their advantages, their risks, and how you… Read more
If a mentor lost money once, they’re unreliable? is a common misconception in the world of trading. Trading, by its very nature, involves both wins and losses, and it’s unrealistic to expect anyone, including mentors, to never experience losses. The important thing to consider is how a mentor handles those losses, learns from them, and continues to trade successfully over the long term. A single loss or even a series… Read more
In today’s fast-paced world, many traders fall into the trap of thinking: “If a strategy doesn’t work instantly, it’s not worth using.” But this belief can be one of the most destructive mindsets in trading. Instant gratification has no place in a profession that rewards patience, discipline, and data-driven decision-making. Let’s explore why great trading strategies take time to prove their worth—and why expecting instant results sets you up for… Read more
A common misconception among traders is the idea that if an edge stops working, it was never real to begin with. This belief can lead to unnecessary self-doubt or abandonment of strategies that simply need adaptation. In truth, edges can be real — and still stop working. Market conditions change, volatility shifts, and trader behaviour evolves. A valid edge today may underperform tomorrow, not because it was fake, but because… Read more
In the trading world, a cynical belief often circulates: “If someone sells a course, they must be a failed trader.” The logic seems straightforward — if they were really profitable, they’d be making money in the markets, not from students. But this view is simplistic and often wrong. While there are failed traders who turn to teaching as a fallback, not all educators are failed traders — and not all… Read more
If the backtest has a drawdown, it’s a bad system? This is a common misconception in trading, as many traders view drawdowns as a sign of failure or a problem with their strategy. However, drawdowns are a natural part of trading and do not necessarily indicate that a trading system is bad. In fact, even the most successful systems will experience drawdowns from time to time. It’s important to understand… Read more
The statement “If you don’t have goals, you’ll fail” may sound dramatic, but in trading, there’s truth in it. You might not fail immediately—but without clear goals, your trading will likely lack focus, structure, and progress. And over time, that leads to stagnation, inconsistency, or burnout. Let’s explore why goal-setting isn’t optional in trading—it’s essential for sustained growth and success. No Goals = No Direction When you trade without goals:… Read more
“If you fail in demo, you’ll fail live.” It’s a belief often used to discourage early traders from going live too soon — and while it carries some truth, it also oversimplifies the trading journey. Failing in demo doesn’t guarantee failure in live trading, but it does reveal important gaps in your approach. The key is understanding that demo failure is feedback, not a final judgment. Let’s explore what demo… Read more
It’s a common misconception that if you feel strongly about a trade or market direction, the market will eventually move in your favour. However, trading based on strong emotional convictions can lead to significant risks. The market is unpredictable and operates based on a wide range of factors that are often beyond individual control or intuition. The truth is, the market doesn’t care about your feelings or what you hope… Read more
It’s a common belief that if you dislike or feel negative about a trade setup, it will likely fail. However, trading decisions should not be based on emotions like hate or discomfort. A setup in trading should be evaluated based on objective criteria such as technical indicators, fundamentals, and market conditions, not personal feelings. In fact, trading based on emotional reactions, whether positive or negative, can lead to poor decision-making… Read more
It is often said that if you hesitate, you’ll always lose in trading. While hesitation can certainly cause missed opportunities or poorly timed entries, the idea that hesitation always leads to loss is an oversimplification. In reality, trading success comes from balancing confidence with careful decision-making. Hesitation caused by uncertainty can be a warning sign that the setup is not strong enough — and sometimes, hesitation can actually save you… Read more
When traders face losses, especially early in their journey, it’s tempting to look outward for blame. A common target? The broker. Spreads, slippage, stop hunts, execution delays—surely that’s why the trade failed, right? But here’s the truth: blaming your broker for losses is usually a distraction from the real issue—your own decisions. While broker quality does matter, most trading losses stem from strategy flaws, poor risk management, or emotional execution—not… Read more
A common fear among traders is that if you trade alone, you’ll fail — that without a mentor, a trading group, or someone to guide you, consistent profitability is impossible. While isolation can be challenging, the truth is: you can succeed trading alone — if you build structure, self-awareness, and discipline. Trading is a solo sport by nature. The market doesn’t care if you’re surrounded by people or entirely on… Read more
“If you want success faster, work longer hours.” It’s a belief rooted in hustle culture — the idea that sheer time and effort will speed up your trading results. But in trading, longer hours rarely equal faster success. In fact, more time at the charts can often lead to overtrading, burnout, and emotional fatigue. Trading is not about grinding harder — it’s about thinking clearer, executing cleaner, and reviewing smarter.… Read more
The idea that winning trades automatically mean you’ve done everything right is a common misconception. While it’s true that a win is the result of a trade that worked out in your favour, it doesn’t necessarily mean you followed the optimal strategy or made the best decisions. Winning doesn’t guarantee perfection, and understanding why a trade was successful — even if it wasn’t executed perfectly — is essential for consistent… Read more
“If you withdraw, you’ll jinx your performance.” It’s a superstition that creeps into many traders’ minds — the fear that taking money out of the account will somehow upset your rhythm or cause the market to turn against you. But the reality is, trading success isn’t based on luck or superstition — it’s built on structure, discipline, and repeatable actions. Let’s explore why withdrawing doesn’t jinx your performance — it… Read more
One of the most dangerous myths in trading is the belief that confidence can replace risk management. Some traders assume that if they’re skilled enough or sure enough about a trade, managing risk becomes optional. But here’s the reality: Confidence without risk management is not strength—it’s recklessness. No matter how confident you are, one bad trade can destroy your account if risk isn’t controlled. Let’s explore why confidence must work… Read more
If you’re not profitable in six months, quit? is a harsh mindset that can discourage many talented traders from reaching their full potential. Trading is a skill like any other — it requires time, education, practice, and experience to master. Expecting consistent profitability within six months is unrealistic for most people. This article explores why early struggles are normal in trading and why perseverance, not rushing to quit, is the… Read more
A toxic belief in trading is that if you’re not profitable yet, you’re wasting time — that unless your equity curve is climbing, your effort doesn’t count. This myth causes traders to quit too soon, skip the learning process, and chase shortcuts. The truth is: not being profitable yet does not mean you’re wasting time. It means you’re in the most important phase of your journey — the phase where… Read more
“If you’re not watching charts live, you’ll miss out.” It’s a fear-driven belief that keeps traders glued to their screens — afraid that the next big move will happen without them. But in reality, you don’t need to watch charts live to be successful. In fact, most consistent traders use alerts, planning, and structured routines to avoid unnecessary screen time. Trading isn’t about reacting — it’s about preparing. Let’s break… Read more
“If you’re not excited, you’re not trading properly.” It’s a seductive myth — one that suggests real trading should feel thrilling, fast-paced, and emotionally charged. But in reality, professional trading is often calm, even boring. The more consistent you become, the less emotional your sessions feel. Excitement is a signal — but not always a good one. Often, it means you’re overexposed, chasing, or emotionally attached. Let’s explore why trading… Read more
In the fast-paced world of trading, it’s easy to feel like you’re missing out if you’re not constantly in a position. Many traders get caught up in the fear of missing out on potential profits, often referred to as FOMO (Fear of Missing Out). This mindset can lead to overtrading, impulsive decisions, and taking unnecessary risks. But is it true that if you’re not in a trade, you’re actually missing… Read more
“If you’re not profitable within a year, quit.” It’s a harsh statement — one that plays on fear, pressure, and unrealistic timelines. While it’s true that trading isn’t for everyone, using a one-year deadline to measure potential is deeply flawed. Trading is a performance skill, like professional sports, music, or entrepreneurship — and mastering it often takes years, not months. Profitability in your first year is rare, and not achieving… Read more
It’s easy to believe that if you win most of your trades, you’ve somehow “beaten” the market. The idea that being right often makes you better than the market sounds empowering—but it’s misleading. In reality, no trader is better than the market—because the market isn’t something to beat, it’s something to adapt to. Let’s explore why being right often doesn’t mean you’ve mastered trading—and what actually matters more than win… Read more
A common belief in trading is that a steady daily P&L (Profit and Loss) is a sign of consistency and success. Traders who experience fluctuating daily results are often seen as inconsistent. However, this notion is misleading. Daily P&L volatility doesn’t necessarily indicate inconsistency or failure in a trading strategy. In fact, some fluctuation in daily results is entirely normal and can be expected, even for highly consistent traders. The… Read more
“If your equity curve isn’t steep, you’re underperforming.” It’s a belief driven by comparison — the pressure to prove success with rapid growth and dramatic account curves. But in truth, a steep equity curve often signals unsustainable risk, not superior performance. The real measure of a trader isn’t how fast they grow — it’s how consistently they manage capital, protect downside, and compound over time. Let’s explore why a steady… Read more
The idea that you don’t need to journal if your trading strategy is simple is a common misconception. Whether your strategy is complex or simple, journaling is a crucial tool for improving your trading performance. Even with a straightforward strategy, a trading journal helps you track your progress, identify patterns, manage emotions, and continuously refine your approach. Here’s why journaling remains essential, regardless of the simplicity of your strategy. What… Read more
“If your system is good, you won’t need risk control.” It’s a tempting thought — the belief that a high-performing trading strategy can eliminate the need for risk management altogether. But this idea is not only misleading, it’s dangerous. No matter how accurate or profitable your system appears, risk control remains essential to long-term survival and success in the markets. Let’s explore why even the best strategies need risk management… Read more
When a trade goes wrong or the market feels unpredictable, it’s tempting to think: “Maybe I should just ignore the plan and act on instinct this time.” Some traders even believe that breaking the rules occasionally can “fix” bad situations. But here’s the truth: ignoring your plan rarely fixes anything—it usually makes things worse. In fact, consistently following your trading plan is what separates professionals from impulsive traders. Let’s explore… Read more
In today’s world, especially with the rise of social media, there is a strong emphasis on personal branding and image. This is especially true in fields like trading, where traders are often expected to showcase their success through lifestyle images, flashy posts, and high-profile appearances. However, the question remains: is image more important than results in trading? While image can undoubtedly attract attention and create a perception of success, it… Read more
In the fast-paced world of trading, the idea that inactivity equals laziness is a common misconception. Many traders feel the pressure to be constantly active, whether that means watching the charts all day or entering trades regularly. This belief is often fueled by the idea that successful traders are always on the move, making decisions, and taking action at every opportunity. However, the reality is quite different. Inactivity in trading… Read more
At first glance, the idea of setting consistent income targets in trading sounds responsible and focused. After all, consistency is the goal, right? But here’s the truth: trading income is inherently inconsistent, and expecting steady targets month after month often leads to poor decisions, emotional trades, and unnecessary risk. Let’s break down why income consistency shouldn’t be your main objective—and what to focus on instead. Markets Are Inconsistent—So Income Will… Read more
Many traders rely heavily on indicators like MACD, RSI, ADX, or moving averages to measure trend strength. While these tools can provide helpful signals, indicators alone cannot fully define the strength of a trend. They are supportive—not definitive. Let’s explore why indicators are only part of the picture—and how real trend strength is best assessed. Indicators Are Based on Past Price—Not Context Every indicator is a derivative of price action.… Read more
Many new traders believe that indicators are more important than price. With countless technical tools available — moving averages, RSI, MACD, Bollinger Bands, and more — it is easy to fall into the trap of thinking that indicators hold the real secret to market success. However, indicators are simply derivatives of price. Price action is the ultimate truth in any market, and indicators should serve only as supporting tools, not… Read more
Indicators define the system? is a belief that leads many traders to overcomplicate their strategies with countless technical tools. While indicators can play a helpful role in providing structure and signals, they do not define a trading system by themselves. A true trading system is built around a complete process — including risk management, strategy rules, and psychological discipline — not just the use of indicators. This article explores the… Read more
Many new traders believe that indicators predict the future. It is a comforting thought: if you find the right combination of indicators, you can anticipate exactly where the market is heading. However, while indicators are valuable tools for analysing price behaviour, they do not — and cannot — predict the future with certainty. They provide information about what has happened and what might happen, but markets remain inherently unpredictable. Let’s… Read more
In trading, many wonder whether indicators work better with more signals. At first glance, combining multiple signals seems like a smart way to improve trading accuracy. After all, if one signal is good, two or three should be even better, right? However, the truth is a little more complicated. While more signals can enhance reliability, they can also introduce new risks if not used carefully. The belief that indicators work… Read more
Many traders assume that indices are slower than currencies — that the stock market moves gradually while forex pairs are lightning-fast and volatile. While this idea holds some truth under certain conditions, the reality is: indices can be just as fast — and often more explosive — than many currency pairs, especially during macro events or earnings season. The belief that indices are inherently “slower” is a misunderstanding of volatility,… Read more
A common myth in trading is that indices don’t react to technical analysis — that tools like support and resistance, trendlines, or Fibonacci levels don’t work on indices like the S&P 500 or NASDAQ 100. This belief is false. The truth is: indices absolutely respond to technical analysis, especially because they are heavily traded by technical, algorithmic, and institutional participants. In fact, major indices often respect key technical levels better… Read more
Some beginners mistakenly believe that inflation data is irrelevant to forex trading. After all, exchange rates seem to fluctuate for many reasons — political news, market sentiment, or interest rate changes. However, in reality, inflation data is one of the most important drivers of currency values. It plays a central role in how central banks make decisions, how investors perceive value, and how economic competitiveness shifts between countries. Let’s explore… Read more
The Inside Bar candlestick pattern is widely known for signalling periods of consolidation, where the price stays within the range of the previous bar. The pattern consists of a smaller candle (the inside bar) that forms within the high and low of the preceding candle (the mother bar). Many traders believe that Inside Bars always indicate consolidation, interpreting them as a sign that the market is pausing before making a… Read more
Instagram is filled with screenshots of big profits, flashy cars, luxury trips, and claims of consistent trading success. For new traders, it’s easy to assume that Instagram traders are the real deal. But the truth is: what you see on Instagram rarely reflects reality. Let’s break down why appearances can be deceiving—and how to separate real traders from online entertainers. Social Media Is a Highlight Reel—Not a Trading Journal Instagram… Read more
In trading, instinct often gets a bad reputation. It’s commonly associated with impulsive, emotion-driven decisions — the kind that lead to overtrading, revenge trades, or ignoring a stop loss. This has led many to adopt the belief that “instinct is always wrong.” But this couldn’t be further from the truth. In reality, instinct can be a powerful asset when it’s trained, structured, and grounded in experience. This article explores the… Read more
One of the most persistent misconceptions in trading is that instinct inevitably leads to emotional decision-making. Many traders are taught to fear their instincts — to suppress “gut feelings” in favour of strict rules and logic. The phrase “instinct leads to emotional trading” reflects this caution. But the truth is more nuanced. While emotional trading is certainly destructive, true instinct is not emotion-driven — it’s experience-driven. This article explores the… Read more
In trading, instinct is often viewed with suspicion — especially when decisions are made quickly, without a clear logical explanation. Many traders associate instinct with overconfidence, believing that acting on gut feeling is reckless or ego-driven. The phrase “instinct means overconfidence” captures this scepticism. But is that really true? This article explores the difference between instinct and overconfidence, how each manifests in trading, and how to use instinct wisely without… Read more
The concept of institutional levels — key price zones used by banks, hedge funds, and proprietary trading desks — is often portrayed as more accurate, more respected, and more effective than the levels marked by retail traders. This fuels the belief that institutional levels are always superior to retail ones. While institutional levels are often based on deeper liquidity and order flow, the idea that they are automatically better is… Read more
It’s a common belief among retail traders that institutional trading strategies are always better — more profitable, more sophisticated, and inherently superior. While institutional approaches can offer valuable insights, the idea that they are always better is a myth. Institutional strategies are designed for different objectives, constraints, and capital sizes than retail strategies. What works for a bank or hedge fund doesn’t always translate well for an individual trader —… Read more
There’s a common belief among retail traders that institutions always win, given their large capital, access to advanced technology, and powerful market influence. While institutions undoubtedly have certain advantages — such as deep liquidity, sophisticated trading algorithms, and the ability to move markets — the idea that institutions always win is a myth. In reality, even large institutions can suffer losses, and retail traders can still achieve profitability when they… Read more
Some newcomers to financial markets might believe that interest rates don’t matter. After all, there are countless factors influencing prices, from earnings reports and geopolitical tensions to trader sentiment and technical levels. However, this belief is a serious mistake. Interest rates are one of the most powerful forces shaping currencies, equities, bonds, and even commodities. Let’s explore why interest rates absolutely matter — and why they sit at the heart… Read more
Some traders believe that internet speed defines your edge, assuming that faster internet connections automatically lead to better trade execution, fewer delays, and a competitive advantage. While having a fast and reliable internet connection is certainly important, especially for high-frequency trading or scalping, it is not the sole factor determining your edge in the market. The ability to make informed decisions, analyse data effectively, and manage risk outweighs internet speed… Read more
Some traders believe that intraday trading is safer — thinking that by closing all trades before the end of the day, they avoid overnight risks and therefore reduce their exposure. While intraday trading removes certain risks, it introduces many others, including high emotional pressure, market noise, and frequent decision-making. In truth, intraday trading is not automatically safer — it is simply a different risk profile that requires specific skills and… Read more
In trading, intuition is often misunderstood. Some dismiss it as reckless guessing, while others treat it as a mysterious superpower. The phrase “intuition is guessing in disguise” reflects a common scepticism — the idea that decisions not grounded in logic or data are simply hopeful shots in the dark. But is that fair? In truth, intuition can be both misleading and invaluable, depending on how it’s developed and applied. This… Read more
It takes years to become profitable? is a statement often heard in trading circles, and while there is truth to it for many, it is not a universal rule. Becoming a consistently profitable trader depends on various factors, including the quality of your education, the seriousness of your approach, the time you dedicate to practice, and your emotional discipline. For some, it does take years. For others, with the right… Read more
The idea of passive income is highly appealing, especially when it comes to trading. Many people are drawn to the idea of making money while they sleep—without actively managing investments or taking on much effort. The notion that trading can be a source of passive income with no downside is a common misconception, especially in areas like copy trading, forex, or stock market investments. While it is true that trading… Read more
Among new traders, a popular dream is that it’s realistic to turn £100 into £10,000 in a year. The idea of flipping a small deposit into life-changing money within twelve months is certainly attractive. However, achieving such results is extremely difficult and involves risks that most traders are not prepared for. While technically possible, it is highly unlikely for the average trader without exceptional skill, discipline, and luck. The belief… Read more
There’s a popular belief among traders and investors that January determines the market’s direction for the rest of the year. Known as the “January Barometer,” this idea suggests that if January is green, the rest of the year will be bullish—and if it’s red, expect a down year. While this concept has shown some correlation historically, it’s far from a reliable forecasting tool. Let’s unpack the facts, the fiction, and… Read more
The idea that journaling emotions solves them has become increasingly popular in personal development and trading psychology circles. While journaling doesn’t magically erase emotional struggles, it is one of the most effective tools for processing, understanding, and eventually overcoming them. Journaling doesn’t instantly “solve” emotions — but it provides the space and structure to work through them intelligently. What Does Emotional Journaling Actually Do? Journaling emotions involves writing down your… Read more
Some traders argue that journaling is too time-consuming, offers little return, or simply isn’t necessary — especially with all the automated analytics and tracking tools available today. But while it’s easy to dismiss journaling as a tedious task, that belief often stems from a misunderstanding of its true purpose. When done with intention, journaling is one of the most valuable and time-efficient tools for building long-term trading success. Why journaling… Read more
“Journaling is only for beginners.” It’s a belief that causes many traders to abandon one of the most powerful tools in professional development. But in reality, the more experienced you become, the more valuable journaling becomes. Why? Because growth in trading isn’t about knowing more — it’s about doing what works better and more consistently. Journaling isn’t a training wheel — it’s a permanent part of a high-performance process. Let’s… Read more
Some traders believe that journaling is pointless, thinking it is a waste of time compared to focusing on charts, strategies, or live trading. However, this mindset seriously undermines the development of consistent profitability. Journaling is one of the most powerful tools for accelerating trading improvement, helping traders identify strengths, weaknesses, patterns, and emotional tendencies that would otherwise remain hidden. The belief that journaling is pointless ignores the fact that professional… Read more
For many traders, the idea of keeping a journal can feel like a time-consuming task that takes away from actual trading. With the fast pace of the markets and the pressure to perform, it’s easy to think that journaling isn’t worth the effort. However, the truth is that trading journals are essential for long-term success, and the time invested in journaling is a critical part of the process that pays… Read more
While it’s common practice for traders to review their trades and record their thoughts after each trading session, journaling should not be limited to just post-session reviews. In fact, journaling can be beneficial at various stages of the trading process, not just after the fact. Trading journals should serve as a tool for reflection, self-improvement, and emotional control — and the timing of your entries can impact the effectiveness of… Read more
In the fast-paced world of trading, speed and precision often seem like the highest priorities. With markets moving in milliseconds and opportunities appearing and disappearing in an instant, some traders view journaling as a slow, tedious process that interrupts momentum. But does journaling really slow you down — or is that just a perception rooted in impatience? Why traders feel journaling is a drag 1. Perceived time costMany traders believe… Read more
Many traders believe journals are just for recording feelings — frustration after a loss, fear before entry, or euphoria after a win. While emotional tracking is important, the idea that journals are only for emotional awareness is a myth. In reality, a well-structured trading journal is a comprehensive performance tool. It captures emotional state, yes — but also setup quality, rule adherence, execution timing, risk management, and strategic decision-making. Emotional… Read more
The idea that trading journals are only for documenting losses is a common misconception. Many traders start journaling only after a bad streak, using it as a tool for damage control. While reviewing losing trades is undoubtedly valuable, limiting your journal to only losses creates an incomplete and skewed view of your performance. A well-kept journal should reflect every aspect of your trading journey — including wins. Why some traders… Read more
Some traders argue that keeping a journal is more of a mechanical tool — good for tracking setups and refining strategies, but not particularly helpful for the psychological side of trading. However, this belief underestimates one of journaling’s most powerful functions: shaping a trader’s mindset. In truth, a well-kept trading journal is not just a performance log — it’s a mirror into your mental game. Why traders dismiss the psychological… Read more
Trading journals are often hailed as a critical tool for performance improvement — capturing everything from trade rationale to emotional states. But one question commonly arises: must journals include charts? While some traders swear by it, others find the extra step unnecessary or time-consuming. So, is adding charts essential for a trading journal, or is it just a preference? Why traders include charts in their journals 1. Visual clarityCharts provide… Read more
There’s a common belief that a trading journal must include full screenshots of charts and detailed notes for each trade. While adding screenshots and detailed commentary can be helpful, it is not mandatory to include everything in exhaustive detail. The key to an effective trading journal is consistency, clarity, and relevance — not necessarily capturing every minute detail. Let’s explore why journals don’t always need full screenshots and lengthy notes,… Read more
Many traders believe that a trading journal should only track cold, hard numbers — entry price, exit price, lot size, win/loss, and risk-reward. While these metrics are essential, the idea that journals should only contain numbers is a myth. In fact, some of the most powerful insights come from the qualitative side: your emotions, reasoning, mindset, and market context. A complete trading journal blends data with personal reflection, turning raw… Read more
Some traders believe that keeping a trading journal won’t help with managing emotions. The idea is that while journals are useful for tracking trades and performance, they don’t directly address the psychological aspects of trading. However, this view overlooks the power of journaling as a tool for emotional regulation and growth. In fact, a well-kept journal can play a crucial role in understanding, managing, and improving emotional responses during trading.… Read more
Japanese yen (JPY) pairs, especially major ones like USD/JPY, EUR/JPY, and GBP/JPY, are popular among forex traders due to their volatility, liquidity, and tight spreads. Because of their sharp movements, many traders believe that JPY pairs are only good for scalping. While JPY pairs do offer opportunities for short-term strategies, the idea that they are only suitable for scalping is a myth. In fact, JPY pairs can be traded effectively… Read more
At first glance, taking large positions might seem like a bold move—a sign of conviction and control. In reality, though, large positions don’t prove confidence—they often reveal a lack of discipline or a misunderstanding of risk. True confidence in trading isn’t shown by how big you trade, but by how consistently you follow your plan. Let’s break down why bigger isn’t always better—and what real trading confidence looks like. Large… Read more
It’s easy to assume that a bigger trading account automatically means less risk. After all, with more capital, you can trade smaller position sizes relative to your balance and absorb losses more comfortably. But the idea that larger account sizes eliminate risk is false. In fact, larger accounts come with different — and sometimes even greater — risks. Risk is never eliminated in trading; it is only managed. Why traders… Read more
Many traders believe that late-night trading is better, assuming that it offers less market noise, fewer participants, and more opportunities for less competition. While late-night trading can offer certain advantages, such as fewer distractions and lower volatility, it is not necessarily the best time for every trader or strategy. The optimal time to trade depends on factors such as market conditions, your trading style, and your ability to manage risk,… Read more
Learning ends once you’re profitable? is a dangerous myth that can cause traders to plateau or even lose their edge over time. In reality, financial markets are constantly evolving, and true trading mastery requires continuous learning, adapting, and refining your skills — no matter how profitable you become. This article explores why professional traders never stop learning and how ongoing education is key to long-term success. Why Continuous Learning Is… Read more
Learning trading is like learning a hobby? is a widespread misconception that dangerously underestimates what it takes to succeed in the markets. While hobbies are often casual activities pursued for leisure, trading demands a professional mindset, disciplined practice, emotional resilience, and serious financial risk management. Treating trading like a hobby leads to inconsistent results and frequent losses. This article explains why trading should be approached as a business, not a… Read more
Many traders believe that letting winners run means no take profit, thinking that true professional trading requires leaving positions open indefinitely to capture massive moves. While allowing profitable trades room to grow is a vital principle of successful trading, having no structured take profit strategy can be just as dangerous as cutting winners too early. Proper trade management strikes a balance between letting trades breathe and securing gains intelligently. The… Read more
One of the most widespread myths in trading is the belief that leverage equals risk — that the moment you use leverage, you’re automatically in danger of blowing your account. While it’s true that leverage amplifies both gains and losses, the equation “leverage = risk” is a myth. In reality, leverage is a tool — and risk comes from how you use it. You can trade with 1:500 leverage and… Read more
One of the most misunderstood aspects of trading is leverage — and a common myth is that leverage affects your strategy’s win rate. Many traders believe that using higher leverage somehow increases the chance of losses or alters the performance of their system. But the truth is: leverage does not change your win rate — it changes your risk exposure. Your trading strategy’s accuracy remains the same whether you’re using… Read more
A common misconception among new traders is that leverage is only available in forex, and that it doesn’t apply to markets like indices or crypto. This has led to the myth that leverage is exclusive to forex trading, when in reality, leverage is widely available across multiple asset classes — including indices, cryptocurrencies, commodities, and even stocks. The difference lies in how leverage is offered, regulated, and managed across each… Read more
The crypto space is notorious for volatility — 10% daily moves are not uncommon, and sharp liquidations occur regularly. Because of this, many traders say that leverage trading in crypto is suicide. While this phrase serves as a warning, it’s not entirely accurate. Leverage in crypto is a tool — not a death sentence. Used irresponsibly, it can blow up an account in hours. But used properly — with discipline,… Read more
Liquidity zones — areas on the chart where large volumes of orders are likely to be filled — are often discussed as key tools for institutional traders. Because of their connection to order blocks, stop hunts, and smart money concepts, many retail traders believe that liquidity zones only benefit large players. But this is a myth. While institutions use them to manage big orders, retail traders can also use liquidity… Read more
In the world of candlestick chart analysis, long wicks (also known as shadows) often draw attention because they can signal significant price rejection or strong price movement within a given timeframe. Many traders believe that long wicks mean big moves are coming, assuming that the presence of long wicks indicates an imminent price reversal or breakout. While long wicks can certainly provide valuable information about market sentiment, the idea that… Read more
“Losing means you failed.” It’s a belief that weighs heavily on many traders — especially those new to the markets. But the truth is, losing is not failure. In trading, losses are part of the process. They are expected, planned for, and necessary for long-term success. The real failure is not in the loss itself — it’s in failing to manage risk, follow your system, or learn from the outcome.… Read more
One of the most widely accepted mantras in trading is that “losing money means you’re learning.” While there’s some truth in this — that mistakes can be valuable teachers — it’s not the full picture. The reality is more nuanced: you only learn from losing money if you reflect, review, and refine your process. Losses alone don’t teach anything unless you turn them into feedback. Without structure, losing just becomes… Read more
Many traders, especially those early in their journey, believe that losing money means you’re a bad trader. It is easy to think that losses reflect personal failure or lack of skill. However, the truth is very different: losing money is a normal, unavoidable part of trading — even for the very best traders in the world. What defines a good trader is not avoiding losses altogether but how they manage… Read more
It’s a common belief in trading circles that losing streaks always follow winning streaks—almost like success is inevitably punished. This idea often stems from fear, superstition, or emotional experiences during drawdowns. But is it true? In short: no—losing streaks don’t always follow winning streaks. What does follow winning streaks, however, is often a change in behaviour or mindset that leads to losses—not some natural law of balance. Let’s unpack the… Read more
“Losing streaks are always preventable.” It’s a comforting thought — that with the right strategy, discipline, or timing, you can avoid extended periods of losses. But in reality, losing streaks are not only natural — they’re inevitable, even for the best traders in the world. No strategy wins all the time, and no trader executes perfectly every day. What separates professionals from amateurs is not whether they face losing streaks,… Read more
A common misconception in trading is that losing trades automatically indicate bad decisions. Many traders assume that if they lose a trade, it means they made a mistake or followed the wrong strategy. However, this is not necessarily the case. Losing trades are a natural part of the process, and even the most successful traders will experience them. The key is not whether you lose, but whether you follow your… Read more
Losing trades mean your system doesn’t work? is a mistaken belief that causes many traders to abandon good strategies too quickly. Experiencing losses is a natural part of trading, even with a well-designed, profitable system. No strategy wins all the time, and expecting it to do so leads to unnecessary frustration and poor decision-making. This article explains why losing trades are normal and how to properly evaluate whether your system… Read more
It’s a common belief that losses automatically lead to overtrading—that every trader, after a losing trade, will spiral into revenge mode. While it’s true that losses can trigger overtrading, they don’t cause it by default. What matters most is how a trader responds to the loss—not the loss itself. Let’s unpack why losses aren’t the root issue—and how self-awareness and structure prevent emotional spirals. Losses Are Inevitable—Your Reaction Is Optional… Read more
One of the most common misconceptions in trading is that “losses mean your strategy is broken.” When traders encounter a few losing trades—especially in a row—they often panic, tweak their rules, or abandon the system entirely. But here’s the truth: losses are not proof that your strategy is broken. In fact, even the best strategies experience regular losses as part of their natural performance cycle. Let’s explore why this mindset… Read more
Many traders believe that using low leverage means you’re playing it safe because you’re afraid. In contrast, high leverage is often seen as bold, aggressive, and confident. But this mindset is misleading. Low leverage isn’t a sign of fear—it’s a sign of control, professionalism, and long-term thinking. Let’s explore why smart traders choose low leverage—not because they’re scared, but because they’re strategic. Leverage Magnifies Risk—Not Just Opportunity Leverage allows you… Read more
When it comes to trading, timeframes play a critical role in shaping your analysis and decision-making process. Lower timeframes, such as 1-minute, 5-minute, or 15-minute charts, are often associated with more precise and immediate price movements, which might lead some traders to believe that lower timeframes are more accurate for making trading decisions. This belief stems from the assumption that more granular price action allows for more detailed information about… Read more
Many new traders believe that a MACD cross equals an instant entry signal. After all, the Moving Average Convergence Divergence (MACD) indicator is one of the most popular tools in technical analysis. When the MACD line crosses above or below the signal line, it often suggests a potential shift in momentum. However, relying solely on a MACD cross for immediate entries without considering broader context can lead to false signals… Read more
A common misconception among traders is that MACD only works on daily charts, and using it on lower or higher timeframes is pointless. But in truth, MACD (Moving Average Convergence Divergence) can be used effectively across multiple timeframes—if you understand how to interpret it in context. Let’s unpack why MACD isn’t limited to daily charts and how to make the most of it at any timeframe. MACD Measures Momentum—Not Timeframe… Read more
Many traders believe that major pairs are safer than minor pairs. Major currency pairs like EUR/USD, GBP/USD, USD/JPY, and AUD/USD dominate forex trading volume, offering high liquidity and often tighter spreads. In contrast, minor pairs (also called cross-currency pairs) involve less-traded combinations and can behave more erratically. While it is true that majors generally offer a more stable trading environment, this does not automatically mean they are “safer” in every… Read more
Many traders believe that managing other people’s money leads to better returns — as if the added capital, responsibility, or pressure automatically sharpens performance. But this is a myth. Managing money does not inherently improve returns — and in many cases, it actually reduces them. When you manage external capital, your primary focus often shifts from pure performance to capital preservation, compliance, and consistency. These constraints can limit flexibility and… Read more
Some traders believe that manual backtesting is obsolete, especially in today’s world of advanced backtesting software and algorithmic tools. Automated backtesting certainly saves time and can analyse vast amounts of data quickly. However, manual backtesting remains incredibly valuable, especially for discretionary traders, those refining price action skills, or anyone who wants to truly understand their strategy beyond raw numbers. The idea that manual backtesting is obsolete ignores the deeper learning,… Read more
Manual backtesting is outdated? is a question that many traders ask as they explore the modern tools and technologies available for strategy development. While it’s true that automated backtesting using software and algorithms has become more popular and efficient, manual backtesting is still a valuable technique, especially for traders who want to develop a deep understanding of their strategies or test specific scenarios. However, like any tool, it has its… Read more
Some traders believe that manual trading is outdated — thinking that with the rise of algorithmic trading, artificial intelligence, and automated systems, human traders have no chance of succeeding anymore. However, manual trading is still highly relevant, powerful, and profitable, especially for those who understand market behaviour deeply and maintain strong discipline. In fact, many successful professional traders today still blend manual techniques with modern tools. Let’s explore why manual… Read more
The idea that market makers are always against you is a common belief among retail traders. Market makers, as the entities that provide liquidity by buying and selling financial instruments, are often seen as the “enemy” because they profit from spreads, stop losses, and triggering retail traders’ mistakes. While market makers are profit-driven and often take the opposite side of retail trades, the belief that they are always against you… Read more
“Market makers never lose.” It’s a widespread belief — one that paints market makers as invincible players who always profit by moving the market against retail traders. But the reality is far more nuanced. Market makers are not omnipotent profit machines — they manage risk like everyone else. While they benefit from certain structural advantages, they also face volatility, slippage, inventory risk, and regulatory scrutiny. Let’s unpack why market makers… Read more
Some traders believe that market manipulation is everywhere — thinking that every unexpected move, every stop-loss hunt, and every price spike must be caused by hidden forces deliberately trying to cheat them. While market manipulation does exist, especially in less regulated or lower-liquidity markets, it is not as widespread or omnipresent as many assume. Most price movements are driven by genuine supply and demand dynamics, not constant manipulation. Let’s explore… Read more
A dangerous assumption in trading is that market reactions are the same each time — that when certain news hits or a price pattern forms, the response will be predictable and repeatable. While markets often rhyme, the truth is: market reactions are never identical. They’re influenced by context, positioning, volatility, sentiment, and liquidity — meaning the same event can trigger wildly different outcomes depending on the environment. This article breaks… Read more
Many new traders and investors believe that market timing is always possible. The idea of entering and exiting trades at exactly the right moments is incredibly appealing. If it were consistently achievable, fortunes could be made quickly and easily. However, the reality is much more complex. While it is sometimes possible to time markets well, consistently perfect market timing is practically impossible, even for the most experienced professionals. The belief… Read more
“market watching is the same as market analysis.” It’s an easy assumption — after all, if you’re staring at charts and following the news, aren’t you analysing? But in reality, market watching is passive observation, while market analysis is structured evaluation. One is reactive and emotional; the other is intentional and systematic. True trading success doesn’t come from staring at price — it comes from knowing what you’re looking for,… Read more
The idea that markets always crash in October stems from a few infamous historical events, but the belief itself is a myth. While October has witnessed some of the most dramatic market declines—like the 1929 crash and 1987’s Black Monday—the truth is that October is not inherently a crash month, and it doesn’t consistently produce negative returns. Let’s separate the facts from the fear and examine why this myth persists—and… Read more
Some believe that markets are always efficient — meaning they instantly and perfectly reflect all available information, making it impossible to consistently outperform them. This idea stems from the Efficient Market Hypothesis (EMH), a well-known financial theory. However, in real-world trading, markets are not always efficient. While they often move quickly to adjust to new information, human emotions, imperfect information, and structural factors create regular inefficiencies that skilled traders and… Read more
Some traders mistakenly believe that markets are always trending — assuming that if they just find the right trend, they can ride it continuously for easy profits. However, markets spend a significant amount of time consolidating, ranging, or moving sideways, not trending clearly up or down. Believing that markets are always trending leads to frustration, false signals, and poor trade decisions if you are not prepared for different phases of… Read more
Some traders believe that markets move randomly — assuming that price action is purely chaotic, unpredictable, and impossible to anticipate meaningfully. While there is a random component to short-term market movements, especially on lower timeframes, markets are not entirely random. Over time, price action is shaped by supply, demand, economic forces, and human behaviour patterns — all of which create tradeable structure and opportunity for skilled traders. Let’s explore why… Read more
The Martingale strategy — doubling your position size after each loss in an attempt to recover and profit — is one of the most controversial ideas in trading. At first glance, it seems logical: eventually, you’ll win, and that win will recover all previous losses and deliver a profit. But while Martingale might appear to work in the short term, especially when used “wisely” with limits, it is ultimately a… Read more
Many traders believe that mastery equals 100% confidence — that once you’re experienced and skilled, you’ll never hesitate, never doubt, and always feel completely sure of your decisions. While this sounds empowering, it’s a myth. The truth is: mastery isn’t about constant confidence — it’s about acting with discipline and clarity even when confidence wavers. In trading, uncertainty is permanent. Master traders don’t eliminate doubt — they operate above it.… Read more
One of the most common myths in trading is that mastery means no emotion — that the best traders feel nothing: no fear, no greed, no hesitation. This belief is not only false, but dangerous. The truth is: mastery doesn’t mean no emotion — it means emotional regulation. Even elite traders feel emotion — they’ve just trained themselves to respond with control, not impulsiveness. This article explains why emotions aren’t… Read more
A dangerous and often misunderstood belief in trading is that mastery means having total certainty in your trades — that once you’re skilled enough, every setup will feel clear, every trade will be right, and doubt will disappear. This is a myth. The truth is: even master traders operate in uncertainty. Mastery is not about certainty — it’s about being able to make confident, consistent decisions despite uncertainty. This article… Read more
“Mastery comes after one strategy works.” It’s a belief that encourages focus and commitment — but also risks creating a false sense of finality. While making a strategy work is a crucial milestone in a trader’s journey, true mastery begins after consistent profitability, not because of it. Mastery isn’t just about finding a working system — it’s about being able to adapt, evolve, and perform across changing conditions. Let’s explore… Read more
“Mean reversion doesn’t work in modern markets.” It’s a bold claim — one that has gained traction as markets become faster, more algorithmic, and more influenced by macro shocks. But while it’s true that pure, blind mean reversion strategies struggle in volatile environments, the idea that mean reversion no longer works is a myth. In fact, when applied with nuance, context, and confluence, mean reversion remains one of the most… Read more
Meditation is one of the most widely recommended tools for managing stress — and in the high-stakes world of trading, stress is a constant companion. But does meditation solve trading stress? The answer is yes and no. Meditation doesn’t eliminate stress entirely, but it reshapes your relationship with it, helping you stay calm, focused, and resilient under pressure. It’s not a cure — it’s a daily discipline that builds mental… Read more
It’s a common myth that mental fatigue is just a beginner problem—that once you’re experienced, disciplined, and “hardened,” fatigue won’t affect you. But in reality, mental fatigue impacts traders at every level, from rookies to veterans. The difference is that experienced traders know how to manage it—not avoid it. Let’s explore why fatigue is a universal challenge in trading—and what separates those who get derailed from those who recover. Trading… Read more
“Mental health is unrelated to trading performance.” It’s a dangerous myth — one that ignores the intense psychological demands of trading. In reality, your mental and emotional wellbeing directly impacts your ability to perform. Trading is not just about charts, systems, or technical knowledge — it’s about decision-making under pressure, risk-taking with discipline, and bouncing back from losses without spiralling. Without strong mental health, even the best trading strategy can… Read more
The idea that mental training is unnecessary in trading is a common misconception. Many traders, especially beginners, focus solely on strategies, indicators, and technical analysis while overlooking the mental and emotional aspects of trading. However, mental training is not just necessary; it is essential for long-term success in trading. Trading is not just about numbers and charts; it’s about managing emotions, staying disciplined, and maintaining a clear mindset. Without mental… Read more
In the trading world, it’s often assumed that if a mentor is successful, their students will be too — that profitable traders can automatically produce profitable students. While mentor success is important, the truth is: a mentor’s success does not guarantee student success. Mentorship helps, but student results depend on personal discipline, mindset, and execution. A great mentor can guide — but they can’t do the work for you. This… Read more
Some traders believe that mentors are unnecessary — thinking they can figure everything out alone through trial and error. While it is true that self-study is important, having a mentor can dramatically accelerate trading success, help avoid costly mistakes, and build the right mindset faster than going it alone. Professional traders often credit good mentors as critical to their growth. Let’s explore why trading mentors are valuable, what they offer… Read more
Mentors must show their profits to be legit? is a question that often arises when traders are considering whether or not to work with a mentor. While it’s understandable to want to verify a mentor’s credibility and track record, the requirement for mentors to show their profits can be misleading. Profits are not the only indicator of a successful mentor, and focusing solely on their profit-making ability may cause traders… Read more
Mentorship guarantees success? is a misconception that can lead traders to overestimate the role that mentorship plays in their trading journey. While mentorship can certainly provide valuable insights, guidance, and support, it is not a guarantee of success. Trading is a highly complex and dynamic skill that requires continuous learning, self-discipline, and adaptation to market conditions. Even with the best mentors, success in trading ultimately depends on the trader’s ability… Read more
Many traders believe that mentorship must be 1-on-1 to work — that unless they receive direct, personal coaching from a successful trader, they won’t improve. While 1-on-1 mentorship can be powerful, the truth is: mentorship doesn’t have to be private to be effective. Group mentorship, structured programs, and self-guided frameworks can be just as impactful — and sometimes even more sustainable — depending on how you learn. This article unpacks… Read more
The idea that metrics should be tracked yearly, not daily, is a point of debate among traders and investors. Daily tracking of metrics can provide valuable insights into short-term performance and help with adjustments to strategy. On the other hand, yearly tracking of metrics offers a broader perspective and allows for the identification of long-term trends and overall strategy effectiveness. Ultimately, the best approach is to balance both short-term and… Read more
The idea that Middle Eastern traders only trade gold and oil is a misconception. While gold and oil are important assets in the Middle Eastern market, traders from the region engage in a wide variety of financial instruments, including stocks, forex, bonds, and other commodities. The Middle East has a rapidly growing and diversified financial sector, with traders actively participating in global markets and investing in a variety of asset… Read more
In performance-driven cultures, it’s easy to believe that missing a goal means you’ve failed or fallen behind. But in trading, missing a goal doesn’t mean you’re behind—it means you’re learning, adapting, and growing. The reality is that progress in trading is non-linear, and focusing on constant forward motion can sabotage your development. Let’s explore why missing a goal is often a sign of growth—not failure—and how to reframe your approach… Read more
Missing a trade is as bad as taking a loss? is a common belief that can lead to unnecessary frustration and poor decision-making. While missing a profitable trade can feel disappointing, it is not the same as losing money. In fact, trading involves carefully assessing opportunities and waiting for the right setups — sometimes not taking a trade is the most responsible and profitable decision. This article explores why missing… Read more
Some traders argue that mobile trading is unreliable — suggesting that serious trading must happen only on desktop setups with multiple monitors. While mobile trading has its limitations, it is not inherently unreliable when used correctly. In fact, mobile trading can be a valuable tool for modern traders, offering flexibility, speed, and accessibility — as long as it is part of a structured, well-managed trading approach. Let’s explore the strengths… Read more
Some traders wrongly believe that money management is not part of strategy — that a trading strategy is only about picking the right entries and exits. However, this view overlooks one of the most important truths in trading: money management is a crucial part of any professional trading strategy. Without it, even the best setups and systems will eventually fail. Let’s explore why money management is essential, how it integrates… Read more
In the world of trading, different timeframes serve different purposes. Monthly charts are often seen as tools for long-term investors who focus on holding positions for extended periods, sometimes years. These charts are ideal for identifying long-term trends, support, and resistance levels, which investors can use to make decisions about their investment portfolio. However, the belief that monthly charts are only for investors is not entirely accurate. While monthly charts… Read more
While Monthly Profit and Loss (P&L) is a commonly used metric to evaluate trading success, it should not be the sole determinant of success. Focusing solely on short-term P&L can be misleading and may lead to a narrow view of trading performance. Trading is a long-term endeavour, and success in trading is better measured by a combination of factors, such as risk-adjusted returns, consistency, emotional control, and adherence to a… Read more
For many traders, a monthly review sounds like a responsible routine — a chance to check results, reflect on performance, and make adjustments. But the idea that monthly reviews are enough is a myth for most developing traders. While a monthly overview is essential for long-term tracking, waiting 30 days to evaluate your trading habits, errors, and opportunities is often too slow. The most consistent and self-aware traders build review… Read more
Many traders believe that more broker features automatically mean a better broker — that the longer the list of tools, platforms, bonuses, and options, the better the trading experience will be. However, having more features does not guarantee a broker is safer, more reliable, or more suitable for your needs. Choosing a broker should be based on quality, regulation, trading conditions, and support — not just the number of features… Read more
In trading, there is a widespread belief that more capital means more success. It is true that having a larger account can offer certain advantages, such as greater flexibility and the ability to manage risk more effectively. However, simply having more money in your trading account does not guarantee success. Trading skill, emotional discipline, and sound strategy are far more important than account size alone. The belief that more capital… Read more
In the world of trading, opportunity and edge are key concepts that define success. The idea that more setups automatically equals a better edge is tempting. After all, the more setups you have, the more chances you have to profit, right? While this seems logical, it’s not necessarily true. In fact, focusing on quantity rather than quality can reduce your overall edge and lead to inconsistent results. Let’s explore why… Read more
In the world of trading, it’s easy to assume that the more trades you make, the more learning and experience you gain. After all, practice is essential for improving any skill, so surely making more trades must mean you’ll become a better trader faster, right? While it seems logical, the reality is more nuanced. More trades don’t always translate into more learning, and often, trading more can actually hinder your… Read more
More trades = more money in scalping? is a common belief that many new scalpers hold, thinking that the more trades they make, the more they will profit. While it’s true that scalping involves making numerous trades, simply increasing the number of trades does not guarantee higher profits. In fact, indiscriminate trading or overtrading can lead to significant losses, higher transaction costs, and emotional fatigue. This article explores why more… Read more
Many traders believe that more trades mean more profits. It seems logical: if one winning trade makes money, then dozens of trades should multiply gains even faster. However, in reality, taking more trades often leads to higher costs, lower-quality setups, and inconsistent performance. In trading, quality far outweighs quantity — and overtrading is a common cause of failure. Let’s explore why taking more trades does not necessarily mean making more… Read more
Many new traders are led to believe that most traders on Instagram are profitable. With countless posts showing luxurious lifestyles, massive profits, and screenshots of winning trades, it is easy to assume that trading success is widespread among social media personalities. However, the reality is very different. Most traders — whether on Instagram or elsewhere — are not consistently profitable, and many social media accounts present a misleading image of… Read more
In trading, there is a common misconception that moving average crossovers never fail. Moving average crossovers are one of the most popular strategies for identifying trend changes. When a shorter-term moving average crosses above a longer-term one, it signals a potential buy. When it crosses below, it suggests a potential sell. However, believing that crossovers are foolproof can be dangerous. No indicator, including moving averages, is infallible. The idea that… Read more
In the world of index trading, the NASDAQ 100 (NDX or US100) and S&P 500 (SPX or US500) are two of the most popular choices. Many traders argue that NASDAQ is better for day trading than the S&P, citing sharper moves, higher volatility, and faster returns. While it’s true that NASDAQ offers more explosive intraday opportunities, the idea that it is always better depends on your trading style, risk tolerance,… Read more
It’s tempting to believe that “if it’s working, don’t touch it.” When you’re in a winning streak, the last thing you want to do is stop and question it. But in trading, blindly riding a winning streak can be just as dangerous as panicking during a losing one. The truth is: you should absolutely question a winning streak—not out of fear, but out of discipline. Here’s why. Winning Streaks Can… Read more
“News events are designed to wipe traders out.” It’s a belief rooted in fear — the idea that central banks, institutions, or media entities purposely use economic news to trigger mass stop-outs and punish retail traders. While it’s true that news events cause volatility, they are not designed to target traders — they reflect real changes in market expectations, risk, and valuation. Let’s explore why news events are not traps… Read more
A common belief among new traders is that news events make forex impossible to trade — that markets become too erratic, unpredictable, and dangerous during high-impact releases like NFP, CPI, or interest rate decisions. While it’s true that news events bring volatility, the idea that they make forex untradeable is a myth. In reality, news events create some of the most powerful opportunities in the forex market — for those… Read more
Many traders believe that news is always priced in, assuming that by the time an announcement is made, the market has already fully adjusted for it. While markets are forward-looking and often anticipate events, this belief is not always accurate. In reality, how much news is priced in depends on how expected the event is, the level of surprise in the data, and current market positioning. Surprises, shifts in sentiment,… Read more
Some traders believe that news only matters for long-term traders, assuming that short-term price movements are purely technical and unaffected by economic releases or world events. However, news impacts markets across all timeframes — often with explosive effects in the short term. Ignoring news risks being caught on the wrong side of major price moves, even for intraday or swing traders. The belief that news only matters for long-term traders… Read more
Some traders believe that news traders do not use charts — thinking that if you are trading based on economic events, central bank announcements, or breaking news, you can ignore technical analysis altogether. However, even news traders use charts to time entries, manage risk, and find confirmation. While news drives the underlying market direction, charts remain essential tools for executing smart, disciplined trades. Let’s explore why news traders rely on… Read more
Some traders believe that news trading is always profitable — that reacting quickly to economic releases, central bank statements, or major headlines will guarantee easy gains. While news events certainly create large market moves and opportunities, news trading is extremely risky and far from consistently profitable. It requires precise timing, deep understanding, and strong discipline. Let’s explore the real challenges of news trading, why it can be both rewarding and… Read more
A common myth among traders is that NFP day is always profitable. Non-Farm Payrolls (NFP) — the monthly US jobs report — is one of the most anticipated events in the forex and financial markets. Because it often causes sharp volatility, many traders expect big profits every NFP Friday. However, while NFP can create large moves, it also carries high risk, unpredictable reactions, and the potential for big losses if… Read more
A widespread belief in forex trading is that Non-Farm Payrolls (NFP) is the most important event on the economic calendar. While NFP is certainly high-impact and closely watched, the truth is: NFP is important, but not always the most important. Its market-moving potential depends on broader context, expectations, and current macro themes. Other events — like CPI, interest rate decisions, or central bank speeches — can be far more influential… Read more
Many traders believe that noise distracts from profits, assuming that external distractions, whether from the market, environment, or personal life, can negatively affect their trading performance. While it’s true that a noisy or chaotic environment can reduce focus and impair decision-making, the impact of noise varies depending on the trader’s personality, strategy, and ability to manage distractions. The key to success in trading is not necessarily avoiding all forms of… Read more
The idea that North Americans don’t trade forex is a misconception. In fact, North America, particularly the United States and Canada, represents one of the largest and most active forex trading markets in the world. Forex trading in North America has grown significantly over the past several decades, with many institutional and retail traders participating in the market. The forex market is the largest financial market globally, and North America… Read more
The New Zealand dollar (NZD) is often perceived as a minor currency in the global forex market, leading some traders to believe that NZD is too illiquid to trade. While NZD is less liquid than the US dollar or euro, the idea that it’s untradable due to illiquidity is a myth. NZD is a fully tradable, highly respected currency with ample liquidity — especially in major pairs like NZD/USD, AUD/NZD,… Read more
Many traders believe that office setups lead to better performance, assuming that having a dedicated trading space with multiple monitors, ergonomic furniture, and a quiet environment will automatically enhance their trading success. While a well-organised office setup can certainly improve comfort and focus, it is not a guarantee of better performance. Success in trading depends much more on strategy, discipline, emotional control, and risk management than on the physical environment… Read more
The notion that offshore brokers are always bad is a common belief in the trading community, often driven by concerns about regulation, security, and client protection. Offshore brokers are those that are registered in countries with less stringent regulatory oversight, often in jurisdictions known for their favourable tax laws or lax financial regulations. While some offshore brokers may engage in unethical practices or riskier business models, it is not accurate… Read more
Many traders believe oil prices move solely based on supply data — such as inventory levels, OPEC+ production targets, or drilling activity. While supply is a critical factor, the idea that oil moves only with supply numbers is a myth. In reality, oil is influenced by a complex web of forces, including demand expectations, geopolitical risk, currency fluctuations, and macroeconomic indicators. Understanding these broader drivers is essential for anyone trading… Read more
It’s often said that oil prices drive currency markets, especially for energy-exporting countries. While there is some truth to this — particularly with currencies like the Canadian dollar (CAD), Russian ruble (RUB), and Norwegian krone (NOK) — the idea that oil prices dictate forex moves across the board is a myth. Oil is a significant factor, but it is one of many variables in the complex web of forex drivers.… Read more
Once disciplined, always disciplined? is a common belief among traders that implies discipline, once achieved, remains permanent. However, discipline is not something that can be achieved once and maintained forever without effort. It is a skill that requires continuous practice and awareness. Even the most disciplined traders can experience lapses due to changing market conditions, emotional stress, or evolving strategies. This article explores why discipline needs to be nurtured continuously… Read more
In trading, there’s a belief that once you find your edge, you must guard it closely — that sharing it will somehow destroy its power. This leads many traders to think, “If I share my edge, it will stop working.” But is this really true? Not necessarily. While some edges rely on secrecy or low participation, most retail trading edges are not fragile enough to collapse just because others know… Read more
Once profitable, bots never lose? is a common misconception among traders looking for an easy path to consistent profits. Many believe that once a bot proves itself profitable, it will continue to deliver gains indefinitely without intervention. However, the reality is much more complex. This article explores why even the best trading bots can experience losses and why constant monitoring and adjustment remain critical. Why Bots Cannot Guarantee Ongoing Profits… Read more
It’s a tempting belief: once you’ve become profitable, you’ve earned the right to increase your risk. After all, if your strategy works and your confidence is high, shouldn’t you scale up aggressively? The reality is more nuanced. While increased risk can lead to higher returns, it must be applied with caution, structure, and a deep understanding of your edge. Profitability doesn’t give you a licence to gamble — it gives… Read more
“Once you’re profitable, you’re done learning.” It’s a myth that tempts many traders into complacency — the idea that reaching profitability marks the end of the journey. But in reality, profitability is just the beginning of true mastery. Markets evolve, strategies decay, and new challenges emerge as you grow. If you stop learning once you’re profitable, you’re setting yourself up for stagnation — or worse, decline. Let’s explore why lifelong… Read more
A common belief in the trading world is that to be a real trader, you must be actively trading every day. With the rise of day trading and the influx of traders on social media showing their daily trades, this idea has become ingrained in many minds. However, the truth is that trading every day is not necessary for success and does not define what it means to be a… Read more
One backtest is enough? is a common misconception that could lead traders to prematurely deploy a strategy without fully understanding its performance in various market conditions. While a single backtest may provide some initial insights, relying on just one test is not enough to thoroughly evaluate the effectiveness of a trading strategy. A comprehensive backtesting approach, involving multiple tests across different time periods, market conditions, and asset types, is essential… Read more
Does one bad day define you? It’s a question that haunts traders, entrepreneurs, and professionals across every industry. A single mistake, a missed opportunity, or a heavy loss can feel like a stain on your identity. But should it? In this article, we explore the deeper truth behind failure, the psychology of setbacks, and why one bad day never tells the full story — unless you let it. The illusion… Read more
One bad internet connection ruins your system? is a concern that many traders face, particularly those who rely on fast execution for scalping or day trading strategies. While an unstable or slow internet connection can certainly cause problems — including missed trades, delays in execution, or order rejections — it does not necessarily ruin your entire trading system. There are ways to mitigate the risks of connectivity issues, and many… Read more
A common fear among traders is that one bad trade ruins your career. The idea is that a single mistake or a single loss could end years of hard work and destroy all future opportunities. While a single bad trade can cause serious damage if poorly managed, professional traders design their approach to ensure that no single trade — win or lose — ever defines their career. The belief that… Read more
Candlestick patterns are widely used by traders to identify potential price movements, reversals, or continuations in the market. Some traders believe that spotting a single candlestick pattern is enough to make a trade entry. This belief stems from the idea that certain patterns — such as Pin Bars, Engulfing Patterns, or Doji candles — provide clear and reliable signals for market reversals or trends. However, relying on just one candlestick… Read more
One good mentor is all you need? is a belief that often circulates among new traders searching for guidance. While having a skilled and trustworthy mentor can dramatically accelerate your learning curve, relying solely on one person can also create limitations. Trading success comes from diverse experiences, continuous learning, and critical thinking — not from following a single perspective blindly. This article explores the real value of mentorship and why… Read more
One losing month means abandon the system? is a reaction many new traders have when faced with short-term underperformance. Losing periods can be frustrating, but they are a normal part of trading, even with strong, well-tested systems. Making major changes based on a single bad month often causes more harm than good. This article explores why one losing month is not a valid reason to abandon your system and how… Read more
“One mistake ruins the day.” It’s a belief that turns a single misstep into a defining event — the idea that one wrong move is enough to derail all progress, all focus, or all confidence. But in reality, mistakes are part of trading — and recovery is part of mastery. Let’s explore why one mistake doesn’t ruin the day unless you let it — and how your response matters far… Read more