Why Most Traders Fail Prop Firm Challenges and How to Succeed

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#583: Why Most Traders Fail Prop Firm Challenges and How to Succeed

In this video:

00:26 – Advantages and disadvantages of trading on a prop firm.

01:05 – People jump in too soon and then fail.

02:02 – Prop firm challenge example. 

03:44 – Large gains for a small investment.

04:25 – Use a VPS and copier software.

05:24 – A free and LIVE webinar for passing a prop firm challenge.

06:16 - 17 minutes Masterclass and book a call with us.

06:27 – Blueberry Markets as a Forex Broker.

So you want to know how to pass a prop foam challenge and to make money by making commissions via prop firm. Let's talk about that a more right now.

Hey there, traders! Andrew Mitchem here at the Forex Trading Coach with video on podcast number 583.

Advantages and disadvantages of trading on a prop firm.

Today is about passing prop firm challenges, the pitfalls and the advantages of trading via a prop firm. Now, if you don't know, all approximates, go and have a look online. If you do know what one is. Then you'll know that they're not always as easy to pass as you might think.

They look really good, and for a lot of people, they look to be a fantastic way of making some very, very good, substantial profits from trading. But with that, needing your own funds and that is the obvious advantage of them. But there are a number of things you have to be careful of.

People jump in too soon and then fail.

One of the most common issues that I see is that people jump into a prop firm way too soon. They should don't know how to trade, and they just think they're going to pay $500 to get $100,000 account. Pass a few demo challenges onto real money, make a fortune. The reality is that for most people, that's not going to happen. And it comes back to, as I've mentioned, that they jump too soon. So for me, it's really important that you look at a prop firm maybe as something maybe like 6 to 12 months from now.

So it's a profitable first, get yourself profitable and have confidence in strategy and understand it on a demo account. Then a small live account and then maybe a larger live account. And at that point, with consistency and with the meeting, the rules of a prop firm. You can then go and successfully pass the challenge.

Now this printed out some, a prop firm challenge here. This happens to be from, blueberry funded. And they have one and two step processes. I actually really like the two stage process. The two step process. I'll tell you what, because you have to prove yourself twice on a demo account before you go to live money. And what I like about it is because you have to prove yourself twice, and you will probably take a little bit longer to pass the demo, challenge or challenges.

Prop firm challenge example. 

As a result of that, you get given a larger drawdown amount. And to me, probably the most, well, the biggest reason why people don't pass prop firm challenges is because they get stopped at and they reached the drawdown criteria, and that means that they're risking too much and they're having too many losing trades, etc.. What I like with this idea is that you need to make a, a 10% gain, but also they allow you up to a 10% drawdown.

So there's a lot more flexible in there. And so by going through a two stage process, having that bigger drawdown, ability, when you get on to the real account, things become a lot easier. You think about it, if you have the ability to have, let's say, a 10% drawdown as opposed to maybe a 5 or 6% drawdown when it comes to real trading and real money.