Chapter 5:
Stay Funded!
Becoming a prop trader is an exciting process filled with lots of opportunities and challenges.
Our goal is to help you make the best decisions at every step of the way and make your dreams come true as a member of our community.
Check out our seven-part series of posts and become a successful funded trader!
Once you have successfully completed the assessment phase, you will enter into the Funded status. This marks another important milestone in your trading career. The Funded stage is a promising period in which you have the opportunity to generate real profits while continuing to follow the rules that have helped you get here. We’d like to share a few thoughts that may help you understand how to remain a funded trader for as long as possible!
The Basic Rules Will not Change
We’ve already explained in our post on the assessment phase what you should watch out for. Here’s a quick recap:
Risk
Avoid taking excessive risks!
Strategy
Have a strategy and a set of rules!
Attention
Pay extra attention to the more professional aspects of trading.
What to Watch Out For?
In the Funded stage, you no longer have a profit target, but you still have to follow the drawdown rules. It’s worth considering whether to withdraw all gains after the first profit or leave some above the opening balance.
If you leave some safety margin in the account and an unfavourable trading period would come along, your account can sustain a major downturn without breaking the maximum drawdown rules.
What Else Changes?
What is most certainly constantly changing is the trader – You! Everyone lives success and of overcoming a challenge differently.
The mental side of success plays a key role in the world of prop trading and can be a determinant of a trader’s ability to continue to achieve their potential and sustain success in the longer term. Here are some key elements of the mental side of success:
Trust in yourself!
Confidence is key to achieving success. Confident traders are more decisive, less prone to decision-making mistakes and better able to deal with challenges. Just because you have made it to the Funded stage does not mean that there are no potential ups and downs.
It is also important for self-confidence that the trader withdraws money from his account at this stage, because the reward is a positive feedback that boosts the trader’s self-esteem.
Stay positive and hold on!
Successful traders have the perseverance and determination to overcome difficulties and continue trading, even if they occasionally suffer losses in the ups and downs. A positive attitude can help traders stay motivated even in difficult times.
Don’t be a sore loser!
Successful traders are able to accept losses and learn from them without negatively affecting their self-confidence or motivation.
Watch and learn!
Successful traders are humble and open to learn new knowledge and skills. They are constantly improving as they trade.
This allows them to adapt to changing market conditions and optimise their strategy.
Learn to accept things!
Even with the greatest attention, it may still occur that you violate the conditions of the Funded section. This is a part of the prop world, much like how loss is part of trading. It is invaluable to have the ability of accepting in the event of a loss. What does that mean? It means that you allow yourself to drop-out, not to be bitter or angry, because you are aware that you can perform a challenge again and that you will again achieve Funded status. This way you avoid frustration and gain yourself inexhaustible energy to motivate yourself.
All of these mentioned, mental elements play an important role in a trader’s success in the world of prop trading. Developing and maintaining both trading psychology and mental state is important to achieving and maintaining long-term success.
What Is the Next Step?
In this post, we wrote about the importance of personal commitment in addition to objective qualities when choosing a prop firm. In the next post, we’ll look at how to choose one of our challenge packages that will help you become a funded trader as quickly and efficiently as possible.
