#492: How to Pass a Prop Firm Challenge

Online Forex Trading Course

How to Pass a Prop Firm Challenge Podcast: Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Join my webinar for new traders Join my webinar for the more experienced trader #492: How to Pass a Prop Firm Challenge In this video: 00:30 – Everyone wants to trade through a prop firm 01:15 – They don’t just hand out money 02:31 – You must preserve capital 03:50 – Don’t use a prop firm who insists on a time limit 04:58 – Trade a variety of markets and time frame charts 05:38 – Do not rush your trading 06:04 – Use a strategy with high reward:risk trades 07:02 - Use Blueberry Markets if you want a good broker 07:39 – Like & Subscribe and leave a comment 08:16 – Ensure you are profitable first before opening a prop firm account In this week's video and podcast, I'm going to give you some important tips of how you can pass a firm challenge and therefore make substantial gains for yourself from the Forex market. Let's talk about that and more right now. Hey, traders, Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 492. Everyone wants to trade through a prop firm So everybody's talking prop firms right now, aren't they? You know, it's the big thing. It's a way that you as a trader do not need to put large amounts of cash or capital into your own trading accounts, whether you've got lots of money or whether you got no money. It does not matter these days because prop firms are there to help us to gain really good incomes through trading the markets, the forex market and other markets. So what is a prop firm if you've not heard of a prop firm, it's basically a firm out there online are lots of them. As always, there are a few good ones and there's probably lots of not so good ones. So be selective. But basically it's a firm that will allow you to trade on their capital for a profit share. They don’t just hand out money Now, of course, they're not just going to go randomly giving out hundreds of thousands of dollars to people. They have no proof of bad. So there's a charge to do it naturally. And also for most of them, there is a challenge to get through first on a demo account for maybe one or two challenges, depending on the level that you enter the challenge. And before you can go into real money. However, we have some traders here at the Forex Trading Coach, some of our clients who are on substantial figures of $750,000 USD and more, and they are making incredibly good income through trading the prop firms and bypassing the different challenges. So think of it, if it was your capital, what's the most important thing you'd like to know? Well, of course you want to know. Can that trade are actual Trade. But also, are they a good trader and can they preserve my capital? That's really what it's about. It's all well and good saying. “I've got a system with a 90% win rate or I've made 50% on my account last week”. But probably if you're doing that, you're gambling, you don't know what you're doing and you will almost certainly fail the prop firm challenges. So in order to pass a prop firm successfully, you need to do a number of things and I'm going to outline those for you. You must preserve capital First of all, as mentioned, preserve capital. So how do you do that? Well, you have to have low and controlled risk. You'd have heard me talk for years and years, about 14 years now, about I trade personally with no more than half of 1% risk per trade. That's my personal level. Now, on a prop firm, you might want to go lower than that. You might want to trade, say, 0.25, a quarter of 1% risk per trade because the aim of a prop firm is not to lose their capital. Most of them have a challenge of, let's say, making a 10% gain, and that's all well and good. But they have a drawdown maximum, most of them around 5%. So again, preserving capital is key. So if you think of it in simple terms,