Updated: Jun 28
In the ever-expanding world of prop firms, there's a game-changing opportunity for traders like us. With prop firms sprouting up everywhere, it's revolutionizing the forex retail community. But amidst the excitement, it's crucial to remember one key principle: focus on the process, not just the money. Mastering the process and controlling emotions are paramount to success, and now, with prop firm accounts, we have the means to make it happen.
Unfortunately, many traders treat prop firm accounts like gambling apps, leading to disappointment and blown-up accounts. Why does this happen? Let's explore the two primary reasons.
Firstly, some individuals seek quick fixes and easy money, driven by the allure of high payouts. While success stories exist, they're akin to winning the lottery—rare occurrences. Treating prop firm challenges like expensive lottery tickets sets us up for disappointment.
Secondly, prop firms design their challenges to be exceedingly difficult, profiting from failed attempts and paying out only a small percentage of generated revenue. They set time limits, employ strict verification processes, and track drawdowns, making success seem almost impossible. It's a tough game, but not an unwinnable one.
So, what can you do to pass a prop firm assessment?
To navigate these challenges, it's crucial to choose prop firms with straightforward evaluation processes and no time limits. Rushing trades or succumbing to external pressure often leads to poor decisions. Take your time, trade consistently, and allow your account to grow organically.
Now, let's talk about realistic expectations. Are you in this for a trading career or a quick cash grab? If the former, set achievable goals. In the market, a monthly gain of 2 to 5% is significant. Growing your account over time with consistent gains presents incredible opportunities.
Consider this scenario: Starting with a self-funded account of $500, a 5% monthly gain would yield a meager $25 profit. Compounded over 12 months, the return is a lackluster $397. In contrast, with a prop firm assessment, applying a similar profit split of 75/25 for a $25,000 account, that same 5% monthly gain would generate $938 profit. Compounded over 12 months, the return skyrockets to an impressive $14,922. The difference is substantial.
Trading isn't a walk in the park
Trading isn't a walk in the park. Develop a strategy with an edge, either through personal research or learning from experienced traders. Manage risk conservatively, never risking more than half a percent per trade. Long-term success lies in disciplined risk management.
Once you acquire a funded account, avoid hasty profit withdrawals. Allow your account to grow and create a buffer. Treat trading like a serious business, maintain a trading journal, and learn from mistakes. Patience, discipline, and accountability pave the path to long-term success.
Prop firm assessments present golden opportunities, but they require the right mindset. This isn't a get-rich-quick scheme; it's a serious business venture. Focus on the process, make steady progress, and who knows? Maybe one day, you'll be living the dream—trading full-time and bidding your boss farewell.