We all knew what MFF were doing. We even learned how to work within that system; specific lot sizes vs. slippage, keeping profits reasonable and staying under the radar, diversification etc.. We learned this because that is what we do as traders...we learn and we adapt. Whether it is working with a broker/firm or studying a particular market or strategy etc., we spend time learning what works and how to be profitable while mitigating risk.
There are some things that I do not like about what MFF were doing, in terms of their intentions and how they viewed their traders. But, the system was workable and provided value to many traders that were ready for it.
I know that when these regulatory groups attack a player in this industry, they are very creative with their paint. They have perfected the art of making things look badly when they need to. This is nothing new. Not saying that MFF is perfect or innocent. That is not my place.
We also knew that these firms were operating in a legal gray area, and that it all could come crashing down at any time. So, what do you do as a trader to mitigate that risk? You diversify. You do not keep all of your eggs in the prop firm basket. You make sure that you still have income coming in from other sources. You keep trading your personal accounts. You reinvest profits into other profit-generating assets or assets that can appreciate over time etc..
Prop firms are just a tool and should be viewed and treated as such. We do not know what will happen in the future, but we can be prepared for it.
In terms of lost funds, the only funds that should really matter are the challenge fee funds. Any funds that were supposed to be paid out in profits are just pretend money until they reach your account, and should have been viewed that way. For challenge fees, hopefully people can issue charge-backs. But if not, you knew that this was a risk and that you might not see your money. You knew that this was an investment and was not guaranteed. Hopefully, you can treat it as a tax write-off in your country.
If you are someone that just cannot let this go, then you might consider a different career path, because losses are part of the game.
There are some things that I do not like about what MFF were doing, in terms of their intentions and how they viewed their traders. But, the system was workable and provided value to many traders that were ready for it.
I know that when these regulatory groups attack a player in this industry, they are very creative with their paint. They have perfected the art of making things look badly when they need to. This is nothing new. Not saying that MFF is perfect or innocent. That is not my place.
We also knew that these firms were operating in a legal gray area, and that it all could come crashing down at any time. So, what do you do as a trader to mitigate that risk? You diversify. You do not keep all of your eggs in the prop firm basket. You make sure that you still have income coming in from other sources. You keep trading your personal accounts. You reinvest profits into other profit-generating assets or assets that can appreciate over time etc..
Prop firms are just a tool and should be viewed and treated as such. We do not know what will happen in the future, but we can be prepared for it.
In terms of lost funds, the only funds that should really matter are the challenge fee funds. Any funds that were supposed to be paid out in profits are just pretend money until they reach your account, and should have been viewed that way. For challenge fees, hopefully people can issue charge-backs. But if not, you knew that this was a risk and that you might not see your money. You knew that this was an investment and was not guaranteed. Hopefully, you can treat it as a tax write-off in your country.
If you are someone that just cannot let this go, then you might consider a different career path, because losses are part of the game.
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