Prop Firms, A New Solution to Capital Deprivation? (Finale)

Can Prop-Firms be a Reasonable Start for a Trader with No Capital

A prop firm is undoubtedly a source of capital, and many traders have taken advantage of this form of capital allocation. But whether it is a reasonable start for a trader with no capital is relative and a question for the self and fully dependent on the head space of the trader in question. Just as a lot of traders have been able to secure and build their accounts from prop firms, a lot have lost money in this endeavor, hence the reason why a trader must know when he is truly prepared to pursue this goal.

I would talk about a psychological issue that must first be solved by a trader who is starting from the ground with zero currency.

Psychology of Ground Zero

As the song goes “Started from the Bottom now we’re here”, Ground zero refers to the starting point of an individual, not necessarily a trader, but a person with nothing to his name. We are in a world where a lot of traders are in this phase in their lives, with no money, and no job and they only cling to trading as a means to survive and thrive. This makes it more difficult to be profitable let alone pass the evaluation phases of any prop firm, and this does not mean it is the fault of the firms, but it is where the individual trader is at the moment psychologically. Hence a trader must know these few things.

1. Ease Pressure off Your Trading

You cannot at least at the start of your career depend on trading as an only source of income, this applies unnecessary pressure on you to make money in the market and you tend to not trade what you see but rather what you need. As a trader it is important to understand not every day presents an opportunity in the market for you to trade, so when you are feeling pressured you should have this at the back of your mind that you are about to do damage to your trading account.

2. Consider Mentorship

Try to talk to experienced traders and mirror their blueprint on approaching evaluations, no trader is the same, but it does not take away from the fact that we face similar conditions when in the wild-wild west, yeah, I mean the market. Try to take advice and implement as instructed.

3. Choose Accredited Prop-Firms

I have already talked about the characteristics reliable prop firms possess and how you can do your research for further knowledge. It is important as a trader starting from ground zero to take the evaluations of reputable firms even though their rules are strict, this is because you don’t want to experience the failure of a prop-firm challenge due to manipulation by the firm, this sort of failure is un-measurable and can do damage to your confidence as a starting trader. You want the prop firms that have your best interest at heart if you want to succeed fast and in the long run in this business, don’t chase the ones with attractive requirements and rules, go for authenticity.

I have mentioned a few points as to why prop-firms can start up a trader with no capital but not without its own “IFS” and “BUTS”, a trader starting from ground zero must take into consideration the challenges of this endeavor, respect the risks and understand them in other to succeed.

My Two Cents

After all of the above discussion on prop-firms, I will in my point of view say prop-firms are part of the solution for traders who are under-funded but not a walk in the park, as traders will need to understand the landscape and avoid the prevalent pit-falls existing in the prop-firm industry, only then will a trader be on the right track to success.

Prop-firm has helped a lot of traders to secure financial freedom, you are not different you just need to follow the right process that mirrors closely the process of the consistent traders’ thread and you shall be amongst them.

Stick to the principles I have mentioned as regards things to look out for when choosing a prop-firm as success is not only in passing evaluation phases, but success is deeply rooted in the confidence you have in your chosen prop-firm.

Thank you for reading the whole article.