Prop Firms Have Been a Game Changer

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#515: Prop Firms Have Been a Game Changer

In this video:
00:30 – Why Prop Firms? 
01:10 – Most people lack the funds to trade full time
02:02 – FX2Funding as a Prop firm 
02:27 – Traders making excellent gains trading on Prop firms  
03:48 – My risk per trade is 0.25%
04:38 – No time limit
05:21 – Blueberry Markets
05:41 – Comments and Suggestions for future videos and podcasts 

Prop firms have been an absolute game changer for us as Forex Traders over the last few years. Let me explain how you can use prop firms to your advantage and make some substantial returns. Let’s get into that more. Right now.

Hey there, traders! It’s Andrew Mitchem here at the Forex Trading Coach with video and podcast number 515.

Why Prop Firms? 

Today I wanted to explain all about prop firms, what they are good ones, maybe not so good ones, and how you can take advantage of them to substantially increase your returns that you make from the Forex market. So the good things with prop firms is you’re able to go to them and prove to them that you can try.

Now, of course, you’ve got to be able to trade properly first within their criteria. So you have to have a strategy and be a good trader before you do that. So don’t just watch this and go and jump into a prop firm because more than likely going to lose money. But what you should do is learn how to trade properly first. And of course, we can help you with that.

Most people lack the funds to trade full time

But the traditional issue that so many people have is even if they can trade properly, they’ve not had substantial capital or funds available to them themselves to be able to make good enough returns from the forex market in order to maybe use the forex market as a full time income.

Now, let’s say you know how to trade and you’re making I’m going to pick some figures, let’s say 50% return per year, but with very low drawdown. That’s absolutely incredible. And does almost any other investment out there, let’s say you only had $10,000 in your own personal account. Well, fantastically, you made $5,000. But of course, in most places around the world, that $5,000 is not gonna get you very far in terms of being able to live and survive. So that has always become the issue.

FX2Funding as a Prop firm 

Now with prop firms, of course, there are good and there are not so good prop firms. And I’m going to put a link here to FX2Funding who I think are very good prop firm and other prop firms are starting to catch up with some of the rules and criteria that FX2Funding have brought in which I think again, is a bit of a game changer.

So I’m not suggesting you should only go to them. Have a look around, do your own due diligence.

Traders making excellent gains trading on Prop firms  

But we have a lot of our clients here at the Forex Trading Coach doing incredibly well through prop firms. And just last week we had a client who’s up passed the challenge stage with a new prop firm and now is on $100,000 live and has passed the 10% profit on that on an 80/20 profit share.

He’s just picked up $8,000 not even his money. It may have cost him $500 to start a challenge and now he’s moving on to the next level. We also have a number of clients who have been through prop firms and with prop firms for quite some time, and a number of them are opening up new prop firms account every week or every few weeks and have multiple prop firm accounts, all running all at different stages of length of time that they’ve been with them.

And I can tell you they are making some crazy, crazy personal returns. Now, does every single prop firm challenge that you take pass? No, of course not. That’s not always going to happen. So having multiple prop firms open, all opening at the same time is a really good way to maybe limit the effects of maybe having a bad week in your trading.

But when you think about it, most good prop firms out there have a drawdown limit of, let’s say, between 5% and 6%. I know FX2Funding have now gone through a 6% maximum drawdown.

My risk per trade is 0.25%

Now, personally, I only risk quarter of 1% per trade on my prop firm accounts. Now, if you think about that 6% maximum drawdown and only quarter a percent risk per trade, that means I need 24 trades all in a row without any profitable trades, 24 trades to get stopped out all in a row and to go wrong against me, which has never, ever happened in 20 years trading, by the way.

But let’s say, you know, it did then I lose my prop firm challenge, but it’s not going to happen. It’s almost impossible to have 24 trades all go wrong without any profitable trades at all. So by having that very strict, low risk criteria that I have myself, that’s what personally suits me. I can ensure that, yes, it may take me a little bit longer to get to that 10% gain, but it’s going to happen now.

No time limit

The other thing you should look out for in a prop firm is don’t have a prop firm has a limit on getting to a 10% profit because otherwise you can do silly things and risk too much and gamble, which is what most people do in their own trading anyway. But unfortunately that means you’re probably going to get stopped out and lose your prop firm account.

So low risk, take your time, get it right if you get your 10% gain in a week because the market showing those, great setups, fantastic. If it takes you two or three months, it does not matter. The aim is to preserve your capital, get to that 10%. So have a look at FX2Funding I put linked to them here. Like I said, we’ve got a lot of clients using multiple different prop firms, but just doing incredibly well.

Blueberry Markets

If you’re looking for a good forex broker, I can highly recommend blueberry markets. The base over in Australia, pretty much anybody from anywhere in the world can open an account with a few exceptions, of course, but go and have a look at them. I’ll put a link to them as well. And they have the Metatrader 4 and Metatrader 5 platform.

Comments and Suggestions for future videos and podcasts 

If you have any questions about prop firms, just leave a comment below or email me Andrew@theforextradingcoach.com If you have any topics or discussions conversations you’d like me to talk about on future videos and podcasts, just like this same thing, leave a comment if you’re watching this.

If you’re listening, just drop me an email Andrew@theforextradingcoach.com and I’ll be pleased to answer that for you. Go out there, have a look at prop firms, but only do it once. You know how to trade first and you’re successful in your own live account first.

Have a great week. See you this time next week. Bye for now

Episode Title: #515: Prop Firms Have Been a Game Changer

Signup For my Forex Masterclass

Find out more about Blueberry Markets – Click Here

Find out more about my Online Video Forex Course

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Find out more about FX2Funding – Click Here

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