So we get a lot of calls about these funding accounts that seem to be proliferating and you have to think like how do they get to stay in business? If most folks come to the table not knowing what they’re doing, well there’s lots of fees. I mean, you have to prove that you can make money over a certain period of time, do it consistently. And if you don’t, you have to reset. So basically they give you a paper trading account where they follow your trading acumen and if you don’t achieve a certain rate of return over a certain period of time, you basically have to reset and start all over. That costs you money. And so I would definitely take the time to know what you’re doing ahead of time because if you just want to go and wing it, you know what’s going to happen is you’re going to end up blowing up and it’s going to keep delaying the process for you.
Now, I admit on some level you probably don’t have a whole lot to lose, but if you want to do it smartly, I would take the time to learn your craft first and then go through the process of trying to qualify. I’m getting emails from folks who haven’t really put in any work and they’re trying to go out and qualify for funding accounts so that they can trade with real money, which, yeah, if you’re broke and you don’t have any grub stake, who wouldn’t want to do it? But I’ve also heard already stories of people who have been reloading the gun and have spent quite a bit of money into the thousands to reload their accounts. Even going so far as to try to fund through several different sources, trading several different strategies. This is obviously an acted desperation, which again, if you just saved all that money and put it into the S&P 500 over time you’d probably end up having more money.
But if trading is your calling, or at least you think it is, I would take the time to really learn your craft and learn again, what’s the point of it all? You have to have a goal. It’s one thing to say, I want to do trading. And I’ve said before that the best way to do it is to learn trading. If you are in such a tight spot cash-wise, I would definitely take a time out and get super clear about what it is that you want to do. I’ve learned the hardware that expectations have built in disappointments and I just feel like after hearing a lot of these stories, yes, a handful of people who’ve gotten funded, but there’s more people who’ve spent a lot of cash.
So think about it. How can these entities remain as a viable entity if you know they’re letting you trade their money with none of your own, which is commendable, where you have a set puke point where they turn off your life trading if you lose money. So there’s a stop on the equity. Well, it must be because everybody else who’s paying the fees can make up for the trading losses and for those handful of people who do make money. So net-net of everything, the share and the trading profits as well as the fees for everybody to reload, even their paper trading accounts must be positive compared to what they’re losing on the trading side. So I can’t comment on that business model as to whether it’s good or not, but we’ll certainly see, I just know that if you want things to go smoothly for yourself, take the time to really learn your craft first and then apply for that process if that’s what you want to do.
That’s the advice that I would give you. I know other folks might say, “Hey, just go for it because you have nothing to lose.” But the problem is, is that if you don’t have the training and you get emotionally invested in the outcome of you are getting funded and you keep blowing up, this is like, to me it’s like gambling. You can keep throwing money at something and it’s going to cost you a lot of money in the end. So I would definitely put the time into learning what it is and how it is that you want to trade. I would trade super small and let not I would trade very infrequently and put haircuts on your own capital if you want more of a strategy on that. I can’t go through it here because it’s an audio only file, but I can certainly help you out via email if you want to reach out.
This is a computer generated transcript.
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