I'm not a fan of these things, some people use copy-trading after entering the market, I'm not even a fan of that because I believe you should either be able to make trades yourself, or simply stay away from trading because it isn't for you. Use your money in something else where you have knowledge and experience and you may earn some money, don't force yourself into something that you don't know anything about or have a general interest in.
Trading is good and profitable for those who are interested in it and aren't forcing themselves into the industry just because there is an earning opportunity. If you are forcing yourself, you will not be able to learn trading and become a good trader, so it's better that you do what you like doing and make a profession out of that.
Topic: Risk associated with Prop firms (Read 142 times)
proprietary trading firms are a great option for beginner traders looking to grow their trading skills and reduce their potential risk in the markets.
Prop firms are not a great option for beginner traders, it is a fallacy to think that way. Prop firms are mostly for traders who have developed a level of certainty about their trading abilities and are just limited because of lack of capital to trade with. Prop firms can be an option for them. Some other ways to raise money are;
You can also get people like close friends and family to directly invest in your trading, and promise them a percentage afterwards. If you can successfully meet up with the percentage that you have promised, they will be willing to invest more from which you will also gain.
If your results from trading is very positive and successful, and you have like a channel on telegram or an account on any social media platform where you can show this results, you can get other newbie traders who are interested in a signal group to join yours from where you charge a fee.
You can tutor anyone willing to pay you a token to teach them what you know about trading.
which to me I see it as a waste of resources, instead of going through this why not save up then invest the little you have then you don't have to share your profit with anyone or any firm
I think there are various options for trading. Prop itself is a type of trading that utilizes large capital from other people, and of course there are conditions for its use. This prop is only suitable for experts who can stand on their own feet, but lack capital so they need support. For non-experts, another option is to become a holder or run using your own money which is better. Or there is also a no-cost option for learning, you can register a demo account on the exchange. But of course you don't get income with a demo account. Additional point, you can learn without losing.
I think prop firm only works for people who know how to trade but lack capital. Sure there is leverage but not every market has leverage available.
But for most people it’s a disadvantage because you need to pay data fees and you are limited to small daily losses. They can give you $50000 of starting capital but if you lose say $100, then you are done for the day.
Usually people quit and move on to something else because it becomes a waste of time.
But for most people it’s a disadvantage because you need to pay data fees and you are limited to small daily losses. They can give you $50000 of starting capital but if you lose say $100, then you are done for the day.
Usually people quit and move on to something else because it becomes a waste of time.
Why someone has to get into prop firms to trade when you can trade on your own? that is because they are scared of their own ways of trading.
They prolly do not know that they can trade on their own without having to worry that your funds is in the hands of other people.
No need to pay commissions just by someone managing your finances when you can do it on your own.
I am not against with for starters but when you have learned, you need to work and trade on your own.
They prolly do not know that they can trade on their own without having to worry that your funds is in the hands of other people.
No need to pay commissions just by someone managing your finances when you can do it on your own.
I am not against with for starters but when you have learned, you need to work and trade on your own.
proprietary trading firms are a great option for beginner traders looking to grow their trading skills
How is a beginner trader going to grow their trading skills if the kind of trading is involving money they do not own. I think the biggest challenge what we need to overcome in trading is emotions and therefore if you don't use your real money then you are not going through a full experience of trading.Quote
and reduce their potential risk in the markets. But we have to put into consideration the risk associated with it because starting prop firm ,
There is no reduced risk. It's just more risk IMO. Reduced risk is when you trade with your own funds that you can afford to lose.
proprietary trading firms are a great option for beginner traders looking to grow their trading skills and reduce their potential risk in the markets. But we have to put into consideration the risk associated with it because starting prop firm ,
As a proprietary trader, your money is at risk already, and it also involves high fees, and it is mostly about day trading.
payouts are subject to the firm's rules, which may restrict a trader's access to profits.
And if a targeted profit is not reached within a stipulated time , that means you failed the challenge and you will loose the account , this means you will have to purchase another account to continue your trade, which to me I see it as a waste of resources, instead of going through this why not save up then invest the little you have then you don't have to share your profit with anyone or any firm
As a proprietary trader, your money is at risk already, and it also involves high fees, and it is mostly about day trading.
payouts are subject to the firm's rules, which may restrict a trader's access to profits.
And if a targeted profit is not reached within a stipulated time , that means you failed the challenge and you will loose the account , this means you will have to purchase another account to continue your trade, which to me I see it as a waste of resources, instead of going through this why not save up then invest the little you have then you don't have to share your profit with anyone or any firm
Well in props you are handling really large amount of capital, as oppose to the subscription fee. And after you pass the phase 1 or 2, you basically have your refund and your risk is no longer there, and you can trade the capital they've gave from you. The only consideration is that you have maximum loss of 10% of the account, and the profit split which is reasonable because it's their capital invested to your trading the first place.
If you lack capital and found reputable one propfirm, then you can leverage it so you can earn more with less capital putting in. You can buy 15K challenge account for 89usd. However this is a double edge sword because this is not for beginners who are just starting out. Propfirms are for those who already have their trading system working for them. Otherwise, if you force yourself into this, you'll just blow one challenge account to another.
proprietary trading firms are a great option for beginner traders looking to grow their trading skills and reduce their potential risk in the markets. But we have to put into consideration the risk associated with it because starting prop firm ,
As a proprietary trader, your money is at risk already, and it also involves high fees, and it is mostly about day trading.
payouts are subject to the firm's rules, which may restrict a trader's access to profits.
And if a targeted profit is not reached within a stipulated time , that means you failed the challenge and you will loose the account , this means you will have to purchase another account to continue your trade, which to me I see it as a waste of resources, instead of going through this why not save up then invest the little you have then you don't have to share your profit with anyone or any firm
As a proprietary trader, your money is at risk already, and it also involves high fees, and it is mostly about day trading.
payouts are subject to the firm's rules, which may restrict a trader's access to profits.
And if a targeted profit is not reached within a stipulated time , that means you failed the challenge and you will loose the account , this means you will have to purchase another account to continue your trade, which to me I see it as a waste of resources, instead of going through this why not save up then invest the little you have then you don't have to share your profit with anyone or any firm
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