There has been a lot of discussion in recent days about the legitimacy of the Trader Funding program. The essence of the program is quite simple – show that you can trade successfully, and you will get the funds you require to support your future trading activities. In return, all of your future trades will be split evenly between yourself and the company.
Minimum Opening Investment
In order for the Trader Funding program to be considered valid, there are some things traders have to do and have signed up for. Firstly, you have to have a minimum opening investment. This is important because that is the minimum amount traders need to open their proprietary trading fund. Ideally, you want to invest more, but the company won’t go ahead with this unless you have this amount. Another requirement is that traders have to have a certain number of successful trades under their belt.
Use of Demo Account
The trader funding program also provides traders with a demo account to get used to the software and system. This demo account allows traders to learn how to use the platform and see if it’s right for them. The demo account also allows traders to track their performance in terms of wins and losses. Traders must get to see if this kind of trading education is for them.
Scalping
Most proprietary trading combines programs that are based on scalping. This involves shorting and longing stocks, currencies, commodities, or indexes. If you can short a stock, you’ll know that you can make some quick money. However, you’ll have to give up some profits to make up for the short position.
Breakouts
There are also instances when traders will use breakouts. This happens when a stock or currency goes up by a certain amount, and traders want to cash in on this quickly. Usually, they do this by closing their positions before the stock or currency reaches its profit target. Since they typically make money on each trade, they can use this to gain profits. This is what makes the risk-reward ratio important in a trader funding program.
When you decide to start trading, you should always start small and conservatively. It is easier to lose money when you start, so you should minimize any risk associated with your trading activities. For instance, you should only start trading with the money you have on hand or with the money you can access through the trading-funded program.