Learn How to Pass a Prop Firm Challenge

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#501: Learn How to Pass a Prop Firm Challenge

In this video:

00:28 – Lacking the capital to make a good income? 

01:25 – Prop firms to the rescue

01:52 – Make sure you are profitable first

03:33 – How much to risk per trade?

05:19 – High Reward:Risk Trades

06:15 – View my new on-demand masterclass

06:54 – Take a look at Blueberry Markets

Prop firms. They're a great way to make a substantial income through trading in the Forex market. But how do you pass their Challenges successfully and consistently? Let's talk about that and more right now.

Hey there, Forex traders! Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 501.

Lacking the capital to make a good income? 

Now, traditionally people have always had an issue when it comes to trading and the feeling that they cannot make a substantial income out of their trading.

And it's a question that I've been, you know, sort of presented with for years and years and people go. Look, Andrew, love to do your course, but I've got $10,000. I spent a couple thousand dollars on your course. I don't really have enough money. Even if I can make 50% in a year, you know, to actually make something substantial out of my trading account.

And it's understandable. And my answer has always been, well, that's fine. And I know it's easy for me to say, but you've got to learn to trade properly first, learn how to first still doesn't actually solve the issue for the individual. And, you know, in the past, people were able to do things like maybe trade funds for other people or sell signals and things like that, but it's always been a little bit difficult.

Prop firms to the rescue

However, over the last few years, you'd have noticed we've got a massive influx of prop firms and like everything in the Forex market and everything online, there's good in this. Maybe not so good. You have to do your research to find out what you consider to be a good prop firm. But my job as an educator and as someone who provides a forex strategy is to give you some tips and information of how you can best passed those firm challenges.

Make sure you are profitable first

So the first thing you need to do before you even get to that stage of thinking about a prop firm is make sure that you are consistently profitable yourself. If you're learning a new strategy, like if you're coming to us and it doesn't matter how big your account is, how long you've been trading, I always say to people, get onto a live demo account and a small live demo account of that and make sure you're profitable on that first.

The reason is then you gain confidence in yourself and the strategy and the group of people like us that you've joined, etc. You've got to gain confidence in doing this properly first, then move on to your own personal live account. Doesn't has to be big. It doesn't really matter what size it is, but the ability to be successful and consistent on a live account with low drawdown.

Really important point there. because when you move to a prop firm, you're then got confidence in yourself. You've got confidence in your strategy and your ability. The reason I mention low drawdown is because ultimately when you go to a prop firm, you have to make sure you're preserving their capital. That's why they have those rules in place. Most of them have like about a 5% maximum drawdown, and rightly so.

This is their capital that, you know, even if you passed a few demo challenges and you want to real money, this is their capital. They're risking this for you to trade it. If you don't know what you're doing and you're out there risking 3%-5% to trade, you don't last long. You're just going to keep paying them. Lots of small subscriptions.