You can approach prop firms in a style of scalling. Start with a 5k account for $49 and if u pass, the money u make from the 5k, you can then purchase the 10k account and so on until max allocation. In that way if u keep losing the 5k challenge. You wouldnt have lost too much money ($49) however u gain something more valuable than money, EXPERIENCE!
Exactly!!!! It really is a gift you can use to your advantage. You can also fund your personal account with the prop firm profits and use your personal account as like a savings account that you can scale at any time.
@@neilkilman3443Demo account is lacking psychological factor of trading . You can be grate at video game shooter but you will quickly fail in the real combat …Same thing with trading …
Yes, the prop firm model is extremely successful based on accepting your money with a smile. Excellent advise. You absolutely need to be consistently profitable BEFORE you consider taking the challenge. Otherwise say goodbye to your hard earned money.
Failing challenges are not the only way Prop firm make money. They can also copy trades of the profitable traders (which they already do) to earn money. The reason for surge in number of prop firms is because its the ULTIMALE BUSINESS. They make money from loosing traders (through challenges), and they make money from winning traders (copying trades). Competition will soon lead prop frim to give out 100% Profit split (some prop frims already offer this). So Prop Frims don't really care if you're profitable or not, cause they are gonna make money both ways.
People talking about this in a bad way makes no sense to me at all if you didn’t realise prop firms are for serious traders only of you are not profitable yet why would you buy a challenge and blame the prop firm for b booking you 😂 your just a terrible trader
END, This is very true, rushing the process will miss with your psychology I've been studying for 5 years now while I'm in college doing it both. And now I am a graduating student and at the same I am almost done studying with FOREX. And I might say that the process gives me a lot of knowledge to reach the word "AN INFORMED TRADER" AND ''CONCISTENCY''. And I am planning to get a into FUNDING next month wish me luck. God bless Us All
The other thing you didn't mention is the max drawdown you are supposed to incur with the prop firms. You find that a 10,000usd account has a max drawdown of 500usd. That essentially means they gave you a 500usd account.
but 1) you have paid for it 89 - 129 usd. 2) on some prop firm drawdown is calculated on specifed hour, so you can dive deeper than 500 usd. almost for all 10k minus margin.
The big numbers are literal marketing. They are just tricks because nobody in the trading community thinks. The Max drawdown is technically, essentially how much it costs for that very account if you were to directly "purchase" it.
End. I don't usually comment but I like how you let traders know what's realistic in the trading industry and what's not realistic. You are really transparent and thats why I'm subscribed to you 💯
Yeah. Basically trade the boring regulated broker. 1-2% Stay away from unregulated brokers and prop firms. And pump your Forex account with all you got. You'll lose less and win more 😂
I'll correct you on this 1 thing nick... Firms actually want very consistent successful trader on their platform... they make 10x the money these profitable trader make... they have some sort of trade copier that copy the trades of successful traders... FTMO Have mastered this
If you are not profitable with prop firms, you are not profitable anyway. I don't care whether prop firms are profiting from losers. I care about my profitability.
@@TraderNick Prop firms don't move the markets. They can only go against you through a few pips to target your stop loss. That's bad but not significant at all. I use social trader tools connecting my TFT and FTMO accounts, and they all get filled and hit TP and SL almost simultaneously.
Funded Trading Plus talked about what Nick talks about. They're that 1% prop firm that wants you to make money so they can too. They also use low regulated type of leverage. They benefits Swing Traders big time too! Day traders and scalpers are still welcome there.
@@harrisonwekesa5406 Yeah. That's true. The loss has nothing to do with them. The idea of B-booking is because of the high percentage of traders that lose money and not because they manipulate charts. This thing of most people losing money is why even fellow retail traders are opening prop firms. It is an almost guaranteed profit.
I 100% agree man. Very well said. I like to keep a close eye on the spreads and rules of the firms before I would ever buy a challenge because like you said 99% are setup for you to fail. But if there’s a company with rules I like and they do in fact pay out your profits, then I think they can be beneficial
Most prop firms have a max allocation of 600K, for good reason. There is a Prop firm put there, I won't mention the name, they actually exploit their profitable traders, by copying their performance on much higher capital, we're talking 10-20X more capital. In that sense, the traders that are profitable, make these firms more money than challenge fees ever will. Think of it, 90% profit split is nothing when the traders system is being implemented on 20 times more capital, return on investment that way is astronomical.
don't take advice from people who don't have experience in the subject.. also lo mjita is not a very good trader coz he's only able to make 1-2% per month. these things are not for him
I think it's ok for them to B-Book because most traders are not succesful anyway. The only issue is when they do something against your trades but the B-Booking as an action itself is not bad. They're just trying to take advantage of the fact that 90% of the traders are not profitable.
last year had the mentality of making 10% or more every month but now that im starting to get into propfirms im like, if you get funded 1 or 2 million in capital making between 2-5% monthly is an important amount of money and very simple and realistic results.... Great video
I don't see why they would B-book you. They are not Brockers. At the test phase, you're on a demo acc. If you fail, the money is theirs. If you win, they've got a potential winner.
I have simple take on this Before taking a prop firm challenge or even thinking about putting some money into a brokers account and start trading I want you to ask yourself "Am i profitable"? "Do i have a backtested strategy that provides consistent returns"?? If you cant answer these two questions then dont evne think about trading untill you meet those requirements,its that simple! Would you jump into a swimming pool if you cant swim,No right? Why, because lifes precious. Treat your time and money in the same way. This is the no1 reason why 90% fail,they enter into this market without the proper knowledge and these prop firms or brokers make the most money out of it.
The most futures propfirm counts the unrealized profit to drawdown. Topstep payment rule, you dont get payment, till you didnt have 5 days with +200 usd profit. And every single new payment only with this requirement.
Perspective bro perspective Whether Nick is right or wrong B booking or Z booking what ever i don't care Imagine being that guy who sees 18year old guys making money passing challenges here and there and you are here complaining about how they made you fail Focus on what you can control back test fix your psychology do your research about the prob firm Remember you are just a costumer and no one owes you nothing My request to nick is for him to show proof of how easy or difficult it is to pass a challenge
Prop Trading should not be characterized as trying to get rich quick. Prop firms are a decent opportunity ONLY if you are paying a huge 80 to 90 percent discount. Learning to trade usually involves losing lots of money as you learn. Deeply discounted prop evaluation accounts can reduce this usual cost. However, I think people should NEVER pay for resets. Spend the 20 dollars a month or so and not a penny more and build your strategy and discipline. Use evaluation accounts to get your greed and impatience under control.
City traders imperium and 5ers have been around since like 2016… they’re the real legit prop firms. It comes down to can you identifying which firms want to make money from profitable traders and which want you to fail to make money from challenges. Let’s be honest. If you B book all your traders and suddenly you have too many profitable traders. Because you’re not going to the live market with their orders you’re gunna go broke with payouts.
But i found some traders , could payout more than 50.000 for few times, but they still pay it on time, even they create VIP program so traders can withdraw anytime... If they want us lose, they wont create that program... Are they move the trader who join vip program to A-book?
END. Thank you so much for the insights. You confirmed alot of what I was feeling. Probably why I was so hesitant to get started with the prop firm I was considering. Definitely makes sense....I'll just use the funds I have and build from there.
ive had a 50k account with ftmo and MFF, i understand that b-booking is a thing but as long as your consistent and onside with your bias, you cant really lose, people use tight stops and a large RR, But in my experience is that as long as your not greedy and take logical, safe setups you cant really lose imo
Hey Nick I made it to the "end". I really enjoy these kind of videos you make about the industry a lot, thanks. As you were saying, in my opinion, paying for live test from a prop when that person can’t make steady profit (with small drawdown) is like paying for a driving exam without ever once being behind the wheel, it’s pretty crazy and desperate. I think a lot of these prop firms do prey on the desperation of many. That’s an ugly side of business but it’s legit. I wish traders, who know deep down know that they're not ready to trade yet, take a leaf from your advice and do not throw away their money. They’re best saving it until they are ready.
"is like paying for a driving exam without ever once being behind the wheel" No, it's like being able to lose 10k when you fail at trading and then finding you are out 500 instead of being out 10k. It is true that many people are not ready, but you are assuming these people that are not ready are using demo accounts when in reality they are more likely losing their life savings or the proceeds from selling a house that would have brought them into the upper middle class before they learn humilty.
END. Is there any way to find out if a prop firm really funds anyone or if they just pay the "funded" traders out of the money that they take in on the sim side? Is this business regulated?
People say you should be trading with real money to feel the pressure and live market. And the fact that you are giving out money to prop firm, and in my opinion, it does give you a feeling of trading real money even in the challenge. Instead of a proven consistent profitability, I believe giving the money to prop firm to train myself is better than risking all my capital
END, thanks you for the insight as a new rader it veryeasy to get sucked up in this industry especially since many trader being on youtube are talking about managing million i prop money its easy to get hooked up. thank you for the education and i willl take your advice and assess my result after a year + and decide if prop is the way to go.
End. Looking forward to becoming profitable in the future. I do not want to depend on prop firms, but I would like to use them as a stepping stone as soon as I can be consistently profitable.
made it till the end. I used to have few accounts with theproptrading till one day they just shut down with no warnings or heads up, my advice is save up your earning from props to have your own capital.
You are correct. The original prop firms operated in commercial office buildings and they did trade real money. But, you had to buy in with several thousand dollars of your own capital and you had to pay for the use of your computer, phone, market data, broker commissions, etc. This was before on-line trading, high speed internet VPS's, etc. In addition to paying to rent your workstation, you could only lose as much as you brought in. The only way to have a fast network connection for your market data and your order execution was to pay for a dedicated data circuit also known as a lease line which was a point to point fast network pipe from your office to the exchange and or to your broker. These dedicated network connections cost hundreds or thousands of dollars per month. So, each trader had to pay a share of this cost. As prop firms moved to the internet, the new business model required you to pay a monthly fee for training with simulated trading with strict rules and evaluations and most people will never pass. If you do pass, you supposedly get "funded". But, even as a funded trader, you are probably still trading in a sim account and any profits you think you're making are simply being paid out of the coffers of the simulated program.
If you can trade and have good risk management, no B book can stop y being profitable, but saying that best to take profits and build your personal account with prop profits and no they are not all B booking you.
As a funded trader with a prop firm, I have personally experienced consistent monthly returns of around 2% while maintaining low drawdown levels (0.1 - 0.2%). Regarding the practice of b-booking, it is true that some prop firms may initially evaluate traders' behavior and use revenue from challenges to pay profitable traders. However, as prop firms evolve, they establish a core group of systematically profitable traders who consistently achieve 1-2% returns while keeping drawdown low. These prop firms do not engage in b-booking with such traders and can compensate them from the trading results. It is important to note that serious prop firms typically do not tolerate trading strategies that rely on capturing a few pips here and there, as they are not feasible to replicate in the real market.
Yeah I notice taking the challenges, that your profit loss is not what you think it would be. For instance, a .10 lot. You could be up 1000 points however, your account is only up say $67 give or take. They can have "THE BEST SPREADS" all they want. They make money in different ways. I will note that in drawdown the same applies. You're not down as much. Another word of advice. During backtesting I've noticed the end of the year or beginning yeild better price trending. So passing the difficult phase 1 on most firms may be easier during these times. Not advise, just a friendly observation. Thank you all and good luck!
Made it to the end. I am practicing on Oanda DEMO mode to pass the Funder Pro challenge (best prop firm I've found - real funds, real market). It is certainly not easy. I've studied and practiced intensely for 4 months and am just now beginning to KNOW I am progressing. Take your time and prove your skill to yourself until you KNOW you can consistently, profitably trade. Beat your ego self and you will become a profitable trader. That's what I have discovered.
Correct if I'm wrong but of course they make money on the challenge fees and the high failure rate with inexperienced traders but I've been told that they do copy trades if certain conditions are met but I don't know how accurate this is
Nick I'm using prop firm profits to grow my personal account faster so I can risk one percent and less and be happy with the profits. My personal account is also my savings so it can outperform inflation
There's a psychological issue with 1-2% a month on prop firms. It takes incredible discipline to be forced to make 10% then 5% on most prop firm challenges in a month's time then go all the way down to 1% a month. Most people wanna make more than what was required to get funded. Even the scaling plans require 10% growth over 4 months. Thats 2.5% a month.
Also, it's not an issue for prop firms to pay out because profitable traders are far and few, compared to unprofitable traders, who will take challenges out of desperation to make money and not having funded challenge experience will likely lose and this is where the bulk of the money is coming from. Use prop firms as a way to build capital don't rely on them take profits build personal account, but don't fear prop firms they are there to help pro traders make money. Learn to trade first before attempting a challenge or succumb to failure.
I started lookingn into prop firms yesterday. I've been trading since May of last year and my demo account is profitable. My experience is trading large and small cap stocks going long and short. Aren't prop firms generally marketed towards forex traders? I don't want to sign up for one and then discover that I can't short or trade pre-market. I'd rather just stick with my 3 trades per week.
End. Agree w your conclusion, but think even an ethical prop firm should b book new funded traders to establish history in the same way you suggested a trader should establish their own history before beginning a challenge. In short your suggestion applies to both t and T.
I’ve seen videos posted from people that won challenges employing horrible risk management. I suspect this is the case with several if not most of those that beat challenges. Add that to these services that beat challenges for a contestant… for the firm to do anything but b booking until history is established would be a terrible idea.
You guys are looking at this all wrong. I would rather spend 75$ a month for access to Ninjatrader platform and a demo account so i can learn to be a professional trader than to lose thousands trying to figure it out with my own money. A 4 year college degree costs around $40,000. 4 years at 75$ a month is $3000. Well worth it to learn a new trade. Just paying for Ninjatrader and data feed on my own is $120 a month easily.
When i asked that prop firms giving you demo account how are you make profit while you give me 80% of that funded demo account? Their respond was we have live accounts we filter the successful trades then we do it on our live accounts!🤔 .....do you think they are or not...?
tell me, 1 thing, why dont these prop firms allow options, ye you hear options risky scary yeah if u buy 20 delta OTM, but hell, a real prop firm or a hedgefund would love it, if you could sell options and be delta neutral.
End, lol, that being said, yeah prop firms are a double edged sword indeed, they are a treasure for someone like me in a 3rd world country who wants to finish residency abroad, yet passing those challanges with all the pesky rules is a real pain, u re basically required to make double the drawdown amount, which is like indirectly telling you u have to double your account size in a month.
It's a business. Imo, we should be thankful for these firms, its a way to get capital to trade, while we create our own fund nest. It has a downside, like anything else in life. End
90% 10% split is a good profit for them - they have 10% of whatever capital they have out in the market which is relative to their other income, to me they look like they win both ways
NOW NICK...TELL ME WHATS THE FUTURE OF US RETAIL TRADERS WHO ONLY HAVING A 1000 DOLLAR ACCOUNT TO TRADE AND CANT ARRANGE MORE MONEY FOR THE ACCOUNT...IF WE MAKE 2% ON 1000 USD ACCOUNT THATS 20 USD PROFIT WHICH IS NOT EVEN CLOSE TO MY INTERNET BILL....2% IS NOT EVER A MONTHLY TARGET OF ANY PROP FIRM..SO WHATS THE FUTURE FOR US RETAIL TRADERS...DO YOU HAVE ANY THOUGHTS...????
A good trader can make way more then 1-2% per month even more then 1-2% per day especially with futures. You can also loose more as well so trade well.
For PROFITABLE traders only! Here is the prop firm we recommend! Get 15% off any evaluation with code A1TRADING15 Link: rb.gy/jkpds They have no time limits, 1 step evaluations, fair pricing / refundable fee, and you can even hold positions into the weekend.
If you need to pay for funding as a trader either you are not that good or not that experienced either way they do not want you for your trading skill. End
I agree with some of your words, but most of profitable traders have blown up several accounts to become profitable, dont you think its better to blow up some prop firm accounts worth less than 200 usd than lossing your 1000usd until you become a profitable trader. Because you treat prop firm as real account as you've paid for it. Because you cant be a profitable trader until you trade a real account.
I think it’s better to take demo trading seriously and save yourself money. Then start on a small live account, and make a decision from there whether you’d like to attempt to get funded after seeing consistency for several months. This would save people a lot of money, but few have the patience for it.
I agree - despite the commonly spouted line that you don't have to lose a penny trading because you have access to demo accounts, there is NOTHING that compares to trading live. It's completely different to demo trading and I 100% believe you need to either blow an account or fail a prop term challenge to learn what it means to trade live.
End. I'm still a learning trader trying to make it in the market and when I'm finally ready, I wish to go the prop firm route. It will serve as a great opportunity for me as I live in South Africa and the exchange rate against the dollar at this current period is crazy high! 1-2% honestly would mean more than enough money for me.
Made it to the end. Great and timely video, thanks! The services that pass and trade on your behalf (purportedly) using prop funds are also proliferating.
@@TraderNick What benefit is there for companies to B Book. Is it literally to capitalise on unprofitable traders and what strategies are used to ensure traders are unprofitable. Still slightly confused cause I figure with all these people posting payouts on social media that there would be an uproar if they suddenly had their accounts restricted despite not breaking any rules
You can approach prop firms in a style of scalling. Start with a 5k account for $49 and if u pass, the money u make from the 5k, you can then purchase the 10k account and so on until max allocation. In that way if u keep losing the 5k challenge. You wouldnt have lost too much money ($49) however u gain something more valuable than money, EXPERIENCE!
Exactly!!!! It really is a gift you can use to your advantage. You can also fund your personal account with the prop firm profits and use your personal account as like a savings account that you can scale at any time.
@@darius39351 brush up your skills man, cos you ain't skilled don't mean someone else isn't
That's how I got to a 200k account from a 5k account
Ftmo and many other have free demo accounts. That give you experience for free.
@@neilkilman3443Demo account is lacking psychological factor of trading . You can be grate at video game shooter but you will quickly fail in the real combat …Same thing with trading …
Yes, the prop firm model is extremely successful based on accepting your money with a smile. Excellent advise. You absolutely need to be consistently profitable BEFORE you consider taking the challenge. Otherwise say goodbye to your hard earned money.
Failing challenges are not the only way Prop firm make money. They can also copy trades of the profitable traders (which they already do) to earn money. The reason for surge in number of prop firms is because its the ULTIMALE BUSINESS. They make money from loosing traders (through challenges), and they make money from winning traders (copying trades). Competition will soon lead prop frim to give out 100% Profit split (some prop frims already offer this). So Prop Frims don't really care if you're profitable or not, cause they are gonna make money both ways.
People talking about this in a bad way makes no sense to me at all if you didn’t realise prop firms are for serious traders only of you are not profitable yet why would you buy a challenge and blame the prop firm for b booking you 😂 your just a terrible trader
END, This is very true, rushing the process will miss with your psychology I've been studying for 5 years now while I'm in college doing it both. And now I am a graduating student and at the same I am almost done studying with FOREX. And I might say that the process gives me a lot of knowledge to reach the word "AN INFORMED TRADER" AND ''CONCISTENCY''. And I am planning to get a into FUNDING next month wish me luck. God bless Us All
a book or b book . i dont care what i care about is getting my withdrawal
The other thing you didn't mention is the max drawdown you are supposed to incur with the prop firms. You find that a 10,000usd account has a max drawdown of 500usd. That essentially means they gave you a 500usd account.
Very true!
but 1) you have paid for it 89 - 129 usd. 2) on some prop firm drawdown is calculated on specifed hour, so you can dive deeper than 500 usd. almost for all 10k minus margin.
You totally got the point bro. As for me, I don't trade the initial account size but the Max DD so as to minimize my risks
The big numbers are literal marketing. They are just tricks because nobody in the trading community thinks. The Max drawdown is technically, essentially how much it costs for that very account if you were to directly "purchase" it.
Which is bullshit, of course.
End. I don't usually comment but I like how you let traders know what's realistic in the trading industry and what's not realistic. You are really transparent and thats why I'm subscribed to you 💯
Yeah. Basically trade the boring regulated broker. 1-2%
Stay away from unregulated brokers and prop firms. And pump your Forex account with all you got.
You'll lose less and win more 😂
I'll correct you on this 1 thing nick... Firms actually want very consistent successful trader on their platform... they make 10x the money these profitable trader make... they have some sort of trade copier that copy the trades of successful traders... FTMO Have mastered this
This did not age well considering the fall of MFF
If you are not profitable with prop firms, you are not profitable anyway. I don't care whether prop firms are profiting from losers. I care about my profitability.
If they are incentivized to work against your profitability, because it cuts into their bottom line, just be careful.
@@TraderNick Prop firms don't move the markets. They can only go against you through a few pips to target your stop loss. That's bad but not significant at all. I use social trader tools connecting my TFT and FTMO accounts, and they all get filled and hit TP and SL almost simultaneously.
Funded Trading Plus talked about what Nick talks about. They're that 1% prop firm that wants you to make money so they can too. They also use low regulated type of leverage. They benefits Swing Traders big time too! Day traders and scalpers are still welcome there.
99% of Prop firm B-Booking? 😢
This is serious!!!!!
Thank you so much Nick for sharing this.
This is an eye 👁️ opener for me
It's because most traders lose money. So, A-Booking would mean losses for them(prop firms).
Brokers do the same thing, and I promise you since he promotes super funded fx and eightcap
They also B-book
It’s just the name of the game
@@yourgurusmentorfx9029 been trynna tell ppl this
Except Prop firms use external brokers so they are not manipulating spreads. Your loss is your loss, has nothing to do with the prop firm b booking.
@@harrisonwekesa5406 Yeah. That's true. The loss has nothing to do with them. The idea of B-booking is because of the high percentage of traders that lose money and not because they manipulate charts. This thing of most people losing money is why even fellow retail traders are opening prop firms. It is an almost guaranteed profit.
I 100% agree man. Very well said. I like to keep a close eye on the spreads and rules of the firms before I would ever buy a challenge because like you said 99% are setup for you to fail. But if there’s a company with rules I like and they do in fact pay out your profits, then I think they can be beneficial
Most prop firms have a max allocation of 600K, for good reason.
There is a Prop firm put there, I won't mention the name, they actually exploit their profitable traders, by copying their performance on much higher capital, we're talking 10-20X more capital.
In that sense, the traders that are profitable, make these firms more money than challenge fees ever will.
Think of it, 90% profit split is nothing when the traders system is being implemented on 20 times more capital, return on investment that way is astronomical.
Thanks Nick … as someone who is on the fence about taking a challenge this was very helpful
Take a challenge, but choose a tiny 10k one when it is on sale half price and you can get it for about 50 bucks.
End ,Thanks Nick i always thought to myself that Prop Firms were sketchy 😅you just shined the light my way..
don't take advice from people who don't have experience in the subject.. also lo mjita is not a very good trader coz he's only able to make 1-2% per month. these things are not for him
I think it's ok for them to B-Book because most traders are not succesful anyway. The only issue is when they do something against your trades but the B-Booking as an action itself is not bad. They're just trying to take advantage of the fact that 90% of the traders are not profitable.
Same thought... They trying to increase there likelyhood of making cash
If you traded with a broker, they'd be b-booking as well
last year had the mentality of making 10% or more every month but now that im starting to get into propfirms im like, if you get funded 1 or 2 million in capital making between 2-5% monthly is an important amount of money and very simple and realistic results.... Great video
I don't see why they would B-book you. They are not Brockers. At the test phase, you're on a demo acc. If you fail, the money is theirs. If you win, they've got a potential winner.
END. Thank you Sir Nick! Very practical advise. Keep it coming. GOD BLESS you!
I have simple take on this
Before taking a prop firm challenge or even thinking about putting some money into a brokers account and start trading
I want you to ask yourself
"Am i profitable"?
"Do i have a backtested strategy that provides consistent returns"??
If you cant answer these two questions then dont evne think about trading untill you meet those requirements,its that simple!
Would you jump into a swimming pool if you cant swim,No right? Why, because lifes precious.
Treat your time and money in the same way.
This is the no1 reason why 90% fail,they enter into this market without the proper knowledge and these prop firms or brokers make the most money out of it.
The most futures propfirm counts the unrealized profit to drawdown. Topstep payment rule, you dont get payment, till you didnt have 5 days with +200 usd profit. And every single new payment only with this requirement.
Perspective bro perspective
Whether Nick is right or wrong B booking or Z booking what ever i don't care
Imagine being that guy who sees 18year old guys making money passing challenges here and there and you are here complaining about how they made you fail
Focus on what you can control back test fix your psychology do your research about the prob firm
Remember you are just a costumer and no one owes you nothing
My request to nick is for him to show proof of how easy or difficult it is to pass a challenge
Prop Trading should not be characterized as trying to get rich quick. Prop firms are a decent opportunity ONLY if you are paying a huge 80 to 90 percent discount. Learning to trade usually involves losing lots of money as you learn. Deeply discounted prop evaluation accounts can reduce this usual cost. However, I think people should NEVER pay for resets. Spend the 20 dollars a month or so and not a penny more and build your strategy and discipline. Use evaluation accounts to get your greed and impatience under control.
City traders imperium and 5ers have been around since like 2016… they’re the real legit prop firms.
It comes down to can you identifying which firms want to make money from profitable traders and which want you to fail to make money from challenges.
Let’s be honest. If you B book all your traders and suddenly you have too many profitable traders. Because you’re not going to the live market with their orders you’re gunna go broke with payouts.
But i found some traders , could payout more than 50.000 for few times, but they still pay it on time, even they create VIP program so traders can withdraw anytime... If they want us lose, they wont create that program... Are they move the trader who join vip program to A-book?
End ❤. This content has been an eye opener Nick 🔥
END.
Thank you so much for the insights. You confirmed alot of what I was feeling. Probably why I was so hesitant to get started with the prop firm I was considering. Definitely makes sense....I'll just use the funds I have and build from there.
ive had a 50k account with ftmo and MFF, i understand that b-booking is a thing but as long as your consistent and onside with your bias, you cant really lose, people use tight stops and a large RR, But in my experience is that as long as your not greedy and take logical, safe setups you cant really lose imo
Ahhhh MFF....
Hey Nick I made it to the "end". I really enjoy these kind of videos you make about the industry a lot, thanks. As you were saying, in my opinion, paying for live test from a prop when that person can’t make steady profit (with small drawdown) is like paying for a driving exam without ever once being behind the wheel, it’s pretty crazy and desperate. I think a lot of these prop firms do prey on the desperation of many. That’s an ugly side of business but it’s legit. I wish traders, who know deep down know that they're not ready to trade yet, take a leaf from your advice and do not throw away their money. They’re best saving it until they are ready.
"is like paying for a driving exam without ever once being behind the wheel"
No, it's like being able to lose 10k when you fail at trading and then finding you are out 500 instead of being out 10k. It is true that many people are not ready, but you are assuming these people that are not ready are using demo accounts when in reality they are more likely losing their life savings or the proceeds from selling a house that would have brought them into the upper middle class before they learn humilty.
@@jefflittle8913 who said anything about demo accounts? I'm not assuming anything
END. Is there any way to find out if a prop firm really funds anyone or if they just pay the "funded" traders out of the money that they take in on the sim side? Is this business regulated?
😂
People say you should be trading with real money to feel the pressure and live market. And the fact that you are giving out money to prop firm, and in my opinion, it does give you a feeling of trading real money even in the challenge.
Instead of a proven consistent profitability, I believe giving the money to prop firm to train myself is better than risking all my capital
I agree
Your a genius
End. Key point, make sure you're profitable before trying out prop firms
End❤❤❤❤. I'm a funded trader by The5ers prop firm and I totally agree with your sentiments on this one 👊
Is it good or bad any hiden rule.???.....
@@AkashDeep-wn6gj The5ers is by far the most transparent prop firm. I have two active accounts that get me paid every two weeks.
END, thanks you for the insight as a new rader it veryeasy to get sucked up in this industry especially since many trader being on youtube are talking about managing million i prop money its easy to get hooked up. thank you for the education and i willl take your advice and assess my result after a year + and decide if prop is the way to go.
End. Looking forward to becoming profitable in the future. I do not want to depend on prop firms, but I would like to use them as a stepping stone as soon as I can be consistently profitable.
made it till the end.
I used to have few accounts with theproptrading till one day they just shut down with no warnings or heads up, my advice is save up your earning from props to have your own capital.
End.😂This information is vital.I love it. It make so sense.
End. Nick certainly knows how to trigger the people with things they don't want to hear but need hear.
Use the profits you make from prop firms to start your own account with your own money! Funded account changed my life
END. Thanks for your great advice!
You are correct. The original prop firms operated in commercial office buildings and they did trade real money. But, you had to buy in with several thousand dollars of your own capital and you had to pay for the use of your computer, phone, market data, broker commissions, etc. This was before on-line trading, high speed internet VPS's, etc. In addition to paying to rent your workstation, you could only lose as much as you brought in. The only way to have a fast network connection for your market data and your order execution was to pay for a dedicated data circuit also known as a lease line which was a point to point fast network pipe from your office to the exchange and or to your broker. These dedicated network connections cost hundreds or thousands of dollars per month. So, each trader had to pay a share of this cost. As prop firms moved to the internet, the new business model required you to pay a monthly fee for training with simulated trading with strict rules and evaluations and most people will never pass. If you do pass, you supposedly get "funded". But, even as a funded trader, you are probably still trading in a sim account and any profits you think you're making are simply being paid out of the coffers of the simulated program.
If you can trade and have good risk management, no B book can stop y being profitable, but saying that best to take profits and build your personal account with prop profits and no they are not all B booking you.
As a funded trader with a prop firm, I have personally experienced consistent monthly returns of around 2% while maintaining low drawdown levels (0.1 - 0.2%). Regarding the practice of b-booking, it is true that some prop firms may initially evaluate traders' behavior and use revenue from challenges to pay profitable traders. However, as prop firms evolve, they establish a core group of systematically profitable traders who consistently achieve 1-2% returns while keeping drawdown low. These prop firms do not engage in b-booking with such traders and can compensate them from the trading results. It is important to note that serious prop firms typically do not tolerate trading strategies that rely on capturing a few pips here and there, as they are not feasible to replicate in the real market.
I keep pausing the video to do analysis thanks Nick ❤😂
Why are we same ?..😂
Waiting for this notification
Yeah I notice taking the challenges, that your profit loss is not what you think it would be. For instance, a .10 lot. You could be up 1000 points however, your account is only up say $67 give or take. They can have "THE BEST SPREADS" all they want. They make money in different ways. I will note that in drawdown the same applies. You're not down as much. Another word of advice. During backtesting I've noticed the end of the year or beginning yeild better price trending. So passing the difficult phase 1 on most firms may be easier during these times. Not advise, just a friendly observation. Thank you all and good luck!
Made it to the end. I am practicing on Oanda DEMO mode to pass the Funder Pro challenge (best prop firm I've found - real funds, real market). It is certainly not easy. I've studied and practiced intensely for 4 months and am just now beginning to KNOW I am progressing. Take your time and prove your skill to yourself until you KNOW you can consistently, profitably trade. Beat your ego self and you will become a profitable trader. That's what I have discovered.
Correct if I'm wrong but of course they make money on the challenge fees and the high failure rate with inexperienced traders but I've been told that they do copy trades if certain conditions are met but I don't know how accurate this is
Nick I'm using prop firm profits to grow my personal account faster so I can risk one percent and less and be happy with the profits. My personal account is also my savings so it can outperform inflation
May I ask which Prop Firm you are trading with?
There's a psychological issue with 1-2% a month on prop firms. It takes incredible discipline to be forced to make 10% then 5% on most prop firm challenges in a month's time then go all the way down to 1% a month. Most people wanna make more than what was required to get funded. Even the scaling plans require 10% growth over 4 months. Thats 2.5% a month.
Also, it's not an issue for prop firms to pay out because profitable traders are far and few, compared to unprofitable traders, who will take challenges out of desperation to make money and not having funded challenge experience will likely lose and this is where the bulk of the money is coming from. Use prop firms as a way to build capital don't rely on them take profits build personal account, but don't fear prop firms they are there to help pro traders make money. Learn to trade first before attempting a challenge or succumb to failure.
I agree with you 😊 very genuine 👍🏻 and educational ... Untill & unless we are profitable we have nothing to do with the prop firms 💯 % ✔️
Lux Trading Firm is the only firm I know who's using A-Book and NOT B-Book
I know all this, I thought there was a new company called buble, just watched this on my whole lunch break 😒
I started lookingn into prop firms yesterday. I've been trading since May of last year and my demo account is profitable. My experience is trading large and small cap stocks going long and short. Aren't prop firms generally marketed towards forex traders? I don't want to sign up for one and then discover that I can't short or trade pre-market. I'd rather just stick with my 3 trades per week.
End. Agree w your conclusion, but think even an ethical prop firm should b book new funded traders to establish history in the same way you suggested a trader should establish their own history before beginning a challenge. In short your suggestion applies to both t and T.
Oh no. Don't bring up Funding Talent. That's wrong 😂
I’ve seen videos posted from people that won challenges employing horrible risk management. I suspect this is the case with several if not most of those that beat challenges. Add that to these services that beat challenges for a contestant… for the firm to do anything but b booking until history is established would be a terrible idea.
"END" However thanks, its been a great video.😊
You guys are looking at this all wrong. I would rather spend 75$ a month for access to Ninjatrader platform and a demo account so i can learn to be a professional trader than to lose thousands trying to figure it out with my own money. A 4 year college degree costs around $40,000. 4 years at 75$ a month is $3000. Well worth it to learn a new trade. Just paying for Ninjatrader and data feed on my own is $120 a month easily.
When i asked that prop firms giving you demo account how are you make profit while you give me 80% of that funded demo account? Their respond was we have live accounts we filter the successful trades then we do it on our live accounts!🤔 .....do you think they are or not...?
tell me, 1 thing, why dont these prop firms allow options, ye you hear options risky scary yeah if u buy 20 delta OTM, but hell, a real prop firm or a hedgefund would love it, if you could sell options and be delta neutral.
Great information. Thank you!
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Great eye opener. Thanks Nick.. love from Ghana 🇬🇭 West Africa 🌍
Very big Truth : Prop firms for consistent profitable traders . Thanks Nick
End, lol, that being said, yeah prop firms are a double edged sword indeed, they are a treasure for someone like me in a 3rd world country who wants to finish residency abroad, yet passing those challanges with all the pesky rules is a real pain, u re basically required to make double the drawdown amount, which is like indirectly telling you u have to double your account size in a month.
It's a business. Imo, we should be thankful for these firms, its a way to get capital to trade, while we create our own fund nest. It has a downside, like anything else in life. End
90% 10% split is a good profit for them - they have 10% of whatever capital they have out in the market which is relative to their other income, to me they look like they win both ways
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I'm still a student and my capital is just 500 i ear like 50 to 70usd per day 20 to 35usd. This is exactly what i needed
If you could point us to Jessica's video regarding A-book, I'd appreciate it! Thanks!
End. AMAZING video!!
NOW NICK...TELL ME WHATS THE FUTURE OF US RETAIL TRADERS WHO ONLY HAVING A 1000 DOLLAR ACCOUNT TO TRADE AND CANT ARRANGE MORE MONEY FOR THE ACCOUNT...IF WE MAKE 2% ON 1000 USD ACCOUNT THATS 20 USD PROFIT WHICH IS NOT EVEN CLOSE TO MY INTERNET BILL....2% IS NOT EVER A MONTHLY TARGET OF ANY PROP FIRM..SO WHATS THE FUTURE FOR US RETAIL TRADERS...DO YOU HAVE ANY THOUGHTS...????
If you're a profitable trader, you can buy a 50k- 100k acc, 2-5% of that monthly enough already
A good trader can make way more then 1-2% per month even more then 1-2% per day especially with futures. You can also loose more as well so trade well.
For PROFITABLE traders only! Here is the prop firm we recommend! Get 15% off any evaluation with code A1TRADING15
Link: rb.gy/jkpds
They have no time limits, 1 step evaluations, fair pricing / refundable fee, and you can even hold positions into the weekend.
If you need to pay for funding as a trader either you are not that good or not that experienced either way they do not want you for your trading skill. End
Wow!! This is the first time I'm hearing this bitter truth. Thanks boss for opening my eyes 👀
End! Thanks for the insight.
I agree with some of your words, but most of profitable traders have blown up several accounts to become profitable, dont you think its better to blow up some prop firm accounts worth less than 200 usd than lossing your 1000usd until you become a profitable trader. Because you treat prop firm as real account as you've paid for it.
Because you cant be a profitable trader until you trade a real account.
I think it’s better to take demo trading seriously and save yourself money. Then start on a small live account, and make a decision from there whether you’d like to attempt to get funded after seeing consistency for several months. This would save people a lot of money, but few have the patience for it.
I agree - despite the commonly spouted line that you don't have to lose a penny trading because you have access to demo accounts, there is NOTHING that compares to trading live. It's completely different to demo trading and I 100% believe you need to either blow an account or fail a prop term challenge to learn what it means to trade live.
End. I'm still a learning trader trying to make it in the market and when I'm finally ready, I wish to go the prop firm route. It will serve as a great opportunity for me as I live in South Africa and the exchange rate against the dollar at this current period is crazy high! 1-2% honestly would mean more than enough money for me.
I think the right prop firms that give you live account are you agree guys?
End. Just beginning to learn about Forex trading.
Made it to the end. Great and timely video, thanks! The services that pass and trade on your behalf (purportedly) using prop funds are also proliferating.
END. Good content. i like the chat runing on the background
This is all loser mentality thinking on this video. Go out there and be a winner
End, great video!
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If you're actually a good trader, prop firm will work for you.
What I'm confused about is when you trade on your personal account. Is your booker also B Booking you? Or is this something unique to prop firms?
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Many highly regulated brokers A book, but some still B book in ways that are not so highly predatory!
@@TraderNick What benefit is there for companies to B Book. Is it literally to capitalise on unprofitable traders and what strategies are used to ensure traders are unprofitable. Still slightly confused cause I figure with all these people posting payouts on social media that there would be an uproar if they suddenly had their accounts restricted despite not breaking any rules
Can you recommend any A-Book propfirms?
Scaling plan. Thats the only matter and differentiate it from trading with your own capital.
7-8 years in trading isn't a long time bud....
Yeah mate prop firms are a bit of a joke!
END - might be too much to ask but could you find the best prop firms (in your opinion) and make a video on it - or a yt short
B-Booking = L
End.
Came back to watch the second time this video is really worth it big up to you man
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Love this type of VIDD ❤️❤️