So you have discovered the world of forex trading, you follow traders who post on social media photos and video of their extravagant lifestyles and exotic cars, you see yourself in this position but even though you are a profitable trader, your small account balance will not fund this kind of lifestyle without taking trades that would risk your entire account.
So how do you go about reaching this? Is it possible to make the kind of money that can fund this lifestyle? Funding for forex traders is the fastest way to reach this goal.
Most new traders enter the forex market with a dream of having this kind of lifestyle, but quickly discover that making these kind of profits requires either much higher capital than most have access to or by taking extreme risks, by using lot sizes and leverage that will blow the average account in only a few bad trades, and this is often where they begin to think that the forex market is stacked against them.
So how do these high rollers make it? They have funded traders, previously only accessible to a select few, those who had the right qualifications or connections, now with prop firms discovering that there are profitable traders all over the world and having replaced physical trading floors with digital platforms, any trader now has access to the opportunity of becoming a funded trader.
Prop firms offer to fund to forex traders who are able to show that they have a profitable strategy and consistent results, by sharing some of the risk and paying for an evaluation account, you are given the opportunity to showcase your trading skills.
A set of requirements are laid out by the prop firm offering the funding for forex traders, including things like required profit target, maximum loss (this could be a daily loss or overall and will vary between prop firms) and the amount of time they would expect this to be completed in.
When you are able to show a consistent profit and reach the requirements of the prop firm, your account size will be increased with more of the prop firm’s capital, you are now a funded trader. Trading a prop firm’s capital with no risk to yourself, and your account will continue to grow provided you stay within the prop firms risk parameters. By using funding for forex traders and becoming a funded trader, with a relatively small investment on your part you now have access to the kind of capital that can fund the lifestyle of your dreams.
Becoming a funded trader by passing funding for forex traders evaluation can be a challenge for the unprepared trader, as being exposed to much higher capital as well as having requirements placed on your trading with regard to targets in predefined time frames and maximum allowed losses, can place undue pressure on the unprepared trader causing them to lose focus or to take trades that are not valid by their trading plan due to pressure to complete the challenge, this is why it is important that before taking on a forex funding challenge that a trader has been able to collect enough data on their previous trading to be able to get a good idea of the chances of succeeding in acquiring funding as a forex trader.
This really is all it takes to become a funded trader, unfortunately with excess to these challenges being so easy many overconfident and unprepared traders fail at trying to get funding for forex traders, they then blame the prop firms rules and make excuses as to why they have failed, when in reality they were unprepared and dissent do their research and find a funding model that best fit their trading strategy, forcing themselves to trade away from their comfort zone and to push their strategy to where it hasn’t been full and thoroughly back tested.
The best step you can take to not only improve your chance of success not only for funding but to improve your trading, in general, is to build data through back-testing, this is valuable in building confidence and projecting expected performance, allowing you to apply for forex funding knowing that the odds of passing are in your favor.
