Now that you are funded, congratulations! Your chances of getting high returns have increased. Yipee! However, it will interest you to know that most funded traders do not even make it to the payout stage. It’s either they blow the account, or the trader breaches the prop firm rules knowingly or unknowingly. Don’t be one of them.
Statistics from some of the top prop firms show that only about 5% of the funded traders reach their 1st payout while about 1-2% are consistently profitable. To be among the top 1% takes a lot of hardwork and dedication. It is however not an insurmountable task. What you need to do is separate yourself from the majority because it is obvious that the majority are doing something wrong.
Rules that you must follow
1. Read Through The Prop Firm Rules Again
It is important you go through the rules all over again. Most traders tend to lose guard at this stage. Before you place any trade, always go back and read through the rules set by the prop firm. This will help you determine how to create your trading plan. Your trading plan should be set to accommodate the rules of the prop firm.
If the prop firm does not permit holding trades over the weekend, your funded account is likely to be disabled if you go against it. Just like any sports game, you have to follow the rules of the game. Why? So that you are not disqualified in the long run. Ensure you always read through the rules over and again. Also keep abreast of any updates made by the prop firm.
2. Do not lose the account
One of Warren Buffet’s famous quotes is “Rule No. 1 ” Never lose money. Rule No. 2: Never forget Rule No. 1.” Your first focus once you get the funded account should be not to lose the account. However you got this account, this should always be at the back of your mind.
Since there is no pressure on you to hit any target, it is wise for you not to bow to the pressure of taking trades all the time. While you trade and anticipate your payout, always remember not to lose focus on keeping the account.
Do not forget to use the stop loss order on all your trades to prevent account loss.
3. Get A Side Job
That you are now funded is not an excuse for you not to have something else doing that can make you an income or take you off the chart. Remember, your number 1 goal is not to lose the account. Having an extra income stream will reduce the pressure on you. That way, you are able to think logically and wait for the right trading set up to come to you. Apart from that, if you start to trade out of desperation and the need to meet your financial needs, you will most likely ruin your account before you get payout.
4. Take Only High Probability Trades
The market always presents an endless stream of quality trading opportunities. Take the time to wait and select only trades that fit into your trading plan. Select trades that have high chances of winning. It’s ok to trade 1-5 times in a whole trading month. Go for quality trades with good risk to reward ratio. Once your account is in profit, you can decide to take a break and wait until it is payout time. What this does is that it helps you stay relaxed. When you get your payout, you feel rewarded for your hard work.
5. Always Use Good Risk Management
The easiest way to maintain a funded account is to apply good risk management. You can never go wrong or ruin an account if you always apply good risk management. The 95% of traders who fail do not adhere to this rule. This is why they continue to blow their accounts.
If only you will take this very seriously, you will not only get to the payout stage, you will make withdrawals from your trading account consistently. Go through the course to learn how to use proper risk management.
6. Have A Trading Plan And Stay True To It
Breaking your trading rules every now and then will cause you to make decisions out of emotions instead of logically. Follow your trading rules and you will most likely see yourself receive payouts from the prop firm. Of course, your trading plan can be subject to adjustments. Only change when it is necessary.
7. Be Accountable
Get an accountability partner. It could be your mentor or a fellow trader that you can share your trading ideas or challenges with. Trading can be a lonesome game if you are doing it all by yourself. This is why joining a trading community is key. However, do not be carried away by other people’s views or opinions. Be open to learning and taking corrections but ensure you have your own trading plan(map) to guide you.
8. Opt For Account Management Service;
90% of traders usually don’t get to the payout stage because they gambled their way through to pass. If you are in this category of traders, you will most likely ruin your account before it gets to the payout stage. Truth is, no matter how hard you try, you cannot cheat your way to success.
But instead of letting that happen, you can opt for account management service from transparent and reputable trading firms. Let professionals handle your account for you at a reasonable agreed fee. That way, the pressure of trading is taken off you and you will still get paid.
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