Let me add my 2cents on this Prop firm/Self fund debate.
First of all, prop firm gives ordinary people who don't have $10k, $25k, $50k a chance to get into the trading game with very little risk.
Take FTMO for example. A $10k acct is $155, $20k acct is $250 and $50k acct is $345.
Now the rules are pretty straight forward, you lose your acct if your drawdown is 10%.
So if you are trading a funded acct challenge, you will lose your registeration fee.
But if you lose 10% your self-funded acct, you lose $1k in the $10k acct, $2k in a $20k acct and $5k in a $50k acct.
The risk is higher as a self funded trader.
People say 90% of prop firm traders fail. Well, isn't it the same for self-funded traders? What makes self funded traders special? NOTHING!
In fact, they tend to lose more because of revenge trading, over-trading to make back what they have lost.
Now let's say you are good and you profit from trading. Then every 4 months, you get to scale up your acct and draw your monthly profits from there. And even if you lose your funded acct, you don't lose 10% of what you had, but you lose only your registeration fees.
I believe a prop firm is a good starting point for those still trying to find their way around trading. It's like a demo but with a little risk.
First of all, prop firm gives ordinary people who don't have $10k, $25k, $50k a chance to get into the trading game with very little risk.
Take FTMO for example. A $10k acct is $155, $20k acct is $250 and $50k acct is $345.
Now the rules are pretty straight forward, you lose your acct if your drawdown is 10%.
So if you are trading a funded acct challenge, you will lose your registeration fee.
But if you lose 10% your self-funded acct, you lose $1k in the $10k acct, $2k in a $20k acct and $5k in a $50k acct.
The risk is higher as a self funded trader.
People say 90% of prop firm traders fail. Well, isn't it the same for self-funded traders? What makes self funded traders special? NOTHING!
In fact, they tend to lose more because of revenge trading, over-trading to make back what they have lost.
Now let's say you are good and you profit from trading. Then every 4 months, you get to scale up your acct and draw your monthly profits from there. And even if you lose your funded acct, you don't lose 10% of what you had, but you lose only your registeration fees.
I believe a prop firm is a good starting point for those still trying to find their way around trading. It's like a demo but with a little risk.
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