It doesn’t matter whether you are a seasoned trader or a beginner trader; you should know the best strategies and tips that can help you make more money with a funded prop account. Without ado, let us explore how you can actually leverage the capital provided by the prop firm account, minimize your potential risk, and start making more money.
Choose the Right Account Size
If you want to make more money with prop firms, you must choose the right account size. The rule is quite simple: the bigger the account size, the higher your potential to earn money and generate profits. For instance, if you invest in a $100k prop fund account and another trader chooses a $5k prop account, then you will certainly have a higher earning potential compared to the other trader who chose a smaller account size.
Polish Your Trading Skills
Another tip to increase your earning potential as a prop firm trader is to polish your trading skills. The best you can do is to start trading with a demo account of a prop firm so that you have a platform to practice your trading skills. Also, develop a trading plan and make sure to test your strategy in various market conditions.
Ideally, you should test your trading strategy for at least six months before you officially start prop trading. Believe us when we tell you that your trading skills matter the most because, as a skilled trader, you can actually make more money even on a smaller account compared to a novice trader who is starting with a bigger account.
Learn to Manage Risks
If you want to earn more money as a funded trader, you must learn to manage risks effectively. Once you have achieved effective risk management, you will start making more money than an average trader. However, it is important to keep going up while taking small steps. Prop trading firms allow their traders to scale their accounts if they keep reading the targets and meeting specific conditions. Learning to manage risks also includes avoiding emotional trading.
Always Assess the Market Conditions
Understanding and analyzing the market conditions, along with the financial conditions, is absolutely crucial if you want to avoid bad decisions and ensure profits and more money. Tight market conditions do not make way for great trading opportunities.
For a few days, the market line might go flat if not volatile. However, volatile market conditions can help you earn more. Along with market conditions, you must also learn to manage your potential risks smartly. Once you master risk management effectively, you can actually generate a steady stream of income.
Conclusion
When it comes to earning more money as a prop trader, there are several ways you can make more money than the other traders. However, you must start by mastering your trading strategy and make sure to stick to your tested strategy even when your emotions are running high. As a beginner trader, you should start with a demo account before moving on to the real thing.
