Help a Newbie

Trading
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Please reply with any random tip you have for a newbie in the industry

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Starting out, do not buy larger accounts only (10k, 20k, and buy multiples 3-4) , just stay with the small ones, use the money to re-invest as you go, buy new challenges with other firms to diversify, when they pay you know you can then get a slightly larger account. Take some of your profits for yourself to make it real. The industry has been in a massive hole with firms going under and not paying out. Massively recommend, starting with FTMO first as they are the most stable and your chances for a payout is the highest. Avoid any HFT challenges at all costs, those firms are all scams. That should get you a good start

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Thank you what was super Insightful :pray:

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In the end it will boil down to your own person style …if you are a newbie though I suggest you not to diversify…reason being it might be more taxing to your psychology …instead focus on 1 legit firm that has been around for 2 years minimum and is listed on prop firm match get a 5k or 10k account and place all your focus on that account…

If you can keep that account for at least 3 months that’s when you can consider diversifying or getting larger accounts…just my advise good luck with your journey :muscle:

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Thank you and I appreciate :pray:

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If you have chosen the prop firm route as a newbie:

  1. Focus on Skill Development: Prioritize improving your trading skills over getting immediate payouts. Strategies aimed solely at quick payouts may not be sustainable in the long run and can encourage a gambling mindset.

  2. Take Advantage of Discounts: Use discounts and special offers available through prop firm match websites Look out for deals like 50% off, or buy-one-get-one-free offers. This will ensure that you do not lose to much during the initial learning phase

  3. Understand It’s a Percentage Game: Don’t be discouraged by the amount you make, especially when trading small accounts (e.g., $5K - $10K accounts). Remember, consistency and percentage gains are more important.

  4. Be Patient with Account Challenges: Don’t rush to pass an account challenge in a day. Allow your strategy’s edge to determine the pace. If it takes too long, focus on improving your strategy rather than increasing your position size.

  5. Control Your Risk: As a newbie, limit your risk to no more than 1% per trade setup. I recommend starting with a risk of 0.5% per trade.

  6. Keep a Trading Journal: Document your trades, including entry and exit points, the rationale behind each trade, and the outcomes. Reviewing your trading journal regularly will help you identify patterns, strengths, and areas for improvement.

  7. Stay Educated and Informed: Continuously educate yourself about market trends, trading strategies, and risk management techniques. Join trading communities, attend webinars, and read relevant books and articles to stay informed and improve your skills.

The above points will help you in your journey to become a consistently profitable prop trader.
I wish you all the best :saluting_face:

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I don’t know if words are enough to say thank you I just started with the props last week and I was already facing some of the issues you have listed. Thank you for the insight :pray:

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Follow money management, Thats really really important if you have a strong setup too

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Happy to help out. good luck in your journey