Trading on a Budget: Leverage Online Prop Firms for Exceptional Returns

prop firms on a budget

Table of Contents

Introduction

In this article we’re going to take a look at how traders can leverage prop firms on a budget.

In the not too distant past, aspiring traders were required to deposit money into a broker account, and although there were options to do this cheaply by trading micro lots, in order to be able to make an amount of money that might have some positive effect on their life, the trader would need to deposit a substantial amount of money. The amount of money a trader could make from the financial markets was directly correlated to the amount of personal risk they were able to take. Online prop firms have changed this.

 

An unbeatable ROI

Online prop firms offer traders the potential to earn a huge return on a very small investment. The key is to start small, think of the long game, and use profits to scale funding.

 

No time limit evaluations have changed the game

These days the vast majority of prop firm evaluation programs do not have any time limit, and this means that for a profitable trader who manages risk well, there is no reason at all to ever violate the maximum drawdown on a prop firm account.

 

You will need a profitable trading strategy

Of course, in order to succeed as a trader you will need to have a profitable trading strategy, so make sure you solve that problem first.

Take the time to get this right. Don’t rush it. Learn a strategy, or find an edge in the market and create your own strategy, build a trading plan, and back test it to check that it actually makes money over time.

Once you have confirmed through a back test that your trading strategy is viable, it’s time to forward test it. Do this on a live demo account for as long as it takes for you to feel comfortable trading the strategy profitably in live market conditions.

 

Choosing the right program

We recommend using only the very best online prop firms.

Check out our favourite low cost prop firm evaluations here:

our favourite low cost programs

Manage your risk

So you have a profitable trading strategy and you’ve opened an evaluation account with your chosen firm. You are just beginning your journey as a prop firm trader, don’t get excited, stay calm and think of the long game.

Manage your risk. Start very small and build some profit in the account before you start increasing your risk. If you’re on a budget it is very important that you protect this account and give yourself the chance to learn from your mistakes and get comfortable trading.

If you go into drawdown don’t panic. Reduce your risk. There is no time limit on the evaluations we highlighted above, so there is no reason to rush this. The market goes through phases that will suit you and your trading style, and phases that will not suit you and your trading style. Don’t force it, wait for the market to come to you, and once you and your strategy start performing well, increase your risk.

 

A modest start can lead to exceptional gains

Provided you are trading a profitable strategy and you are disciplined in your approach you will eventually pass your evaluation and will be trading a funded account.

Approach the funded account exactly as you did the evaluation. Take it easy, start small.

In time you will earn your first pay out, congratulations!

Now it’s important to keep your feet on the ground and remember the strategy that led you here.

At this point it’s up to you how you proceed. You can of course keep earning money on this account, but if you really want to go for it then you can save your payouts until you can buy a much bigger account.

Follow the same strategy on a bigger account, and eventually open multiple big accounts with many firms, and you can truly make exceptional gains from your very small initial personal investment.

 

Conclusion

Online prop firms have made trading the financial markets accessible to just about anyone. The financial barrier is extremely low, and with discipline, patience, and well thought out and executed risk management, you can make truly exceptional gains from a very small initial investment.

The key is to think about and plan for the long game. You’ve got this!

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