Entering the world of proprietary (prop) trading can be both exciting and challenging. While the opportunities are vast, the landscape is also full of misconceptions that can mislead new traders, causing frustration and unnecessary setbacks.

If you’re a new prop trader or considering joining a prop trading firm like Hive PT, it’s crucial to separate fact from fiction. Believing in these common myths can hinder your progress and prevent you from maximizing your potential.

In this article, we debunk 10 trading myths new prop traders need to stop believing, helping you build a solid foundation and realistic expectations for your trading journey.

Myth 1: You Need to Predict the Market Accurately Every Time

Many beginners believe that successful traders can predict every market move perfectly. This is simply untrue.

No trader—no matter how experienced—can predict every price movement. The market is influenced by countless variables, many unpredictable.

What matters is having a strategy with a positive expectancy—one that wins more than it loses or earns more on winning trades than it loses on losing trades.

At Hive PT, we emphasize the importance of building such strategies through backtesting and disciplined execution. Learn how to build a reliable strategy in our detailed guide: How to Build a Profitable Backtested Trading Strategy: A Step-by-Step Guide.

Myth 2: Trading Is a Get-Rich-Quick Scheme

Many new traders enter prop trading expecting fast, easy money. This myth is one of the most damaging.

Successful trading requires time, patience, continuous learning, and discipline. While funded accounts provide access to capital, profits come only after consistently following proven strategies and managing risk properly.

If you’re in a rush, you’re likely to take unnecessary risks.

Our Evaluation Process is designed to help you develop these critical skills gradually before you get funded, ensuring you’re prepared for the challenges ahead.

Myth 3: More Trades Mean More Profit

Taking many trades does not guarantee higher profits. In fact, overtrading is a common cause of losses, especially for new traders.

Trading too frequently often leads to poor decision-making and increased transaction costs.

Patience and selective trading are key. Only take trades that meet your criteria and align with your plan.

For tips on avoiding common pitfalls, read Common Mistakes to Avoid When Trading with a Prop Firm in 2025.

Myth 4: You Must Use Complex Strategies and Indicators

Many new traders believe that the more complex their trading setup is, the more likely they are to succeed.

The truth is, complexity often creates confusion and indecision. Simple, clear, and tested strategies tend to be more effective because they reduce emotional and cognitive overload.

Check out our Top 10 Indicators Used by Professional Prop Traders to learn which simple tools the pros actually use.

Myth 5: Funded Trading Means Unlimited Risk

Some traders mistakenly think that a funded account gives them a free pass to take big risks because the firm covers the capital.

However, prop firms like Hive PT have strict risk management rules designed to protect both you and the firm’s capital.

Ignoring these rules can lead to immediate disqualification from the program.

Understand the importance of risk control in our article: Risk Management Techniques Every Trader Should Know in 2025.

Myth 6: You Need to Trade Full-Time to Be Successful

While trading full-time is an option for many, it’s not a prerequisite for success.

Many traders maintain other jobs or responsibilities while trading part-time and still perform well by staying disciplined and following their strategies.

The key is consistency, not time spent.

Explore how you can manage trading alongside other commitments effectively in The Role of Discipline in Achieving Trading Goals Easily in 2025.

Myth 7: Trading Is Purely a Technical Skill

While technical skills—like chart analysis and order execution—are important, trading success depends equally on psychological factors.

Emotional control, discipline, and mindset are crucial.

At Hive PT, we focus on building both skills and trader mindset through our educational content and community support.

Explore why mindset matters in prop trading in our blog on Top Proprietary Trading Challenges In 2025 and How to Overcome Them.

Myth 8: Passing the Challenge Guarantees Long-Term Success

Passing the funded account challenge is an important milestone, but it is not the end of your journey.

Many traders fail after getting funded because they don’t maintain the discipline and risk management required for live trading.

Continuous improvement, adaptability, and emotional resilience are required for long-term success.

Learn more about what to expect after funding in What Makes a Great Prop Firm in 2025: 7 Key Traits of the Best Trading Firms.

Myth 9: You Should Follow Others’ Trades Blindly

Copying another trader’s moves blindly is a recipe for disaster.

Every trader has a unique style, risk tolerance, and capital base.

While it’s helpful to learn from experienced traders, blindly following their trades without understanding the rationale can lead to losses.

At Hive PT, our community encourages learning through shared knowledge and mentoring, not blind copying. Join our community on Discord to grow with fellow traders.

Myth 10: You Don’t Need a Trading Plan

Perhaps the most dangerous myth is thinking you can trade profitably without a plan.

A trading plan acts as your roadmap, helping you make objective decisions and avoid emotional trading.

A good plan defines your entries, exits, risk management, and evaluation process.

If you don’t have a plan yet, start by exploring our educational resources including the Trading Video Academy and Trading eBooks.

Final Thoughts

Prop trading offers incredible opportunities, but only if you approach it with the right mindset and realistic expectations. Busting these myths early on will save you time, money, and frustration.

At Hive PT, we’re dedicated to helping traders succeed through education, community, and a well-structured funded account program.

Ready to take your trading to the next level? Learn more about our funded account challenges and start your journey here: Join a Challenge Now.