So you want to be a prop trader?

I have seen and known many people who have come into trading, blown an account, and given up, and I have met many who did that same exact thing, but stuck with it until they became profitable. Many retail traders once they become profitable hear about Prop firms and think to themselves “man, if I am making money on my account, I can try out for them, be given huge capital, then makes tons of money because I am great at trading” What they fail to factor in is the difference in psychology from jumping to a much larger account size, and more importantly, the fact prop firms have strict rules. It is one thing to become a professional retail trader, it’s a completely different thing to become a Prop trader, when I first became profitable, I immediately tried out for the first prop fund I saw, and I lost my account in 3 days because I didn’t meet their risk management rules. If you want to be a prop trader, you need to take your trading to a completely different level from retail, no more can you be fine with 10% drawdowns and just make it back over time, you need to make money consistently, and minimize your losses, meaning perfect position sizing and risk management, along with a solid, consistent trading plan. I have met many amazing traders who couldn’t work with prop funds simply because they just couldn’t make their style fit with fund requirements, if you want to move into that type of trading, you need to analyze your results over a 6 month period minimum, and see if you can meet their requirements over an extended period of time, once you do that, you have to decide if it’s worth the stress and focus to you, for me it was, but it’s not for everybody. if you want to be a prop trader, then the first thing you need to do right now, is keep accurate trading records, find a fund you want, and trade like you would if you worked for them, once you can improve your results to the point you meet their requirements, then, and only then can you consider a career in prop trading, if any of you have any pointed questions, or anything to add, please let me know in the comments below!

Elijah Newell

Elijah Newell

Leave a Replay