Personal Trading under another person's rules Good?

[Dr.Bitcoin_Strange]

I read somewhere that prop accounts are just demo account,  the twist in that idea is that, those prop firm companies will sell a demo account to you and put strict rules so that traders will not pass the challenge, but if someone luckily pass the challenge, the company pays you part of those profits you made from their pocket and not from the prop account you traded, because the account was not actually real but just a demo account. Does anyone believe this is true? I wanted to  create a thread about it but I find the opportunity to ask the question here.

This is true, they make huge money from the fee, but they make money also from the trader that they give the account.

The traders that the Prop firm company is making profit from are the ones that are professional traders or those traders that passed their challenge on the demo account, right? I feel they make more money from the fees they charge to sell the accounts to some traders that needs it.  Assuming out of 12 subscribers it's only two persons that pass the challenge and they decided to employ these two people to be traditing for them, you  know they have already made so much money from the other 10 persons that lost the challenge.

I don't like prop firm and I can't go for it. The worst part of it is that, they limit the amount of profit you can make in a trade, assume they say your profit must not exceed $1k in a trade, just know that you have lose the challenge if you see a high probability trade and decided to hold the trade to make $5k profit. That's annoying to me.

They do not want the trader to be greedy.

Like you said, maybe this might be to prevent the trader from being greedy but at same time it makes the trader lose the account easily. For example, if a trader lose 3 trades and then on the fourth trade, they have seen an opportunity that would have helped them recover the amount they lost from the 3 bad trades, they can not go for it because of this rule by the firm.

[Cleanshit]

I would say the real issue here is your capital and skills. The reason is that if you have enough skills and capital, then you can trade with your own money in your own trading account. But on the other hand if you do not have enough capital but have enough skills then you can trade in Prop account, because here your capital is not the issue your biggest issue is your skills. That means you will trade for other person.  And as far as I know before entering Prop firm you have to give a test and then enter that is, if you do not have a good skills about trading, then you will not be able to enter there.

Yes do agree that the main thing to put into consideration are capital and skills in the sense of giving a n example of someone having a good trading skills but not having a strong capital yet, you can gain access to big capital through a prop firm. But it nothing compared to having your own capital and also with your self skills, this gives you more control and control. One thing you are needed to take note is that you should know the risk of both before going for any.

[LogitechMouse]

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So to you all which one do you prefer and why do you prefer it.

I tried to trade on propfirms, and there's one reasons why I did it.
I only have a small amount of money that's being used on live account, and because of that, the profit in the long term will be bigger if I trade on propfirms. Bigger capital, bigger chances of making more money hence, the propfirms are there.

This doesn't apply on many though, but let's face it. There are many out there who's like me - trading on small capital. Trading on propfirms can be profitable as long as you have a strategy that works for you when trading assets like Gold, NQ, ES, or even in Forex. I can't say that it's better trading on propfirms because I have failed many challenges on it, but one thing's for sure. Traders are trying to explore propfirms just for the sake of having an access to more capital therefore, higher profit.

As for your question, it depends on one trader to another. I prefer trading on propfirms because I have low capital on my live trading account therefore I have lower profit compared to if I'm holding a $100,000 capital on one propfirm account. I can make way more money doing it. I don't see any problems in doing propfirms. The problem is me and my strategy.

[Pandu Geddon]

Yes do agree that the main thing to put into consideration are capital and skills in the sense of giving a n example of someone having a good trading skills but not having a strong capital yet, you can gain access to big capital through a prop firm. But it nothing compared to having your own capital and also with your self skills, this gives you more control and control. One thing you are needed to take note is that you should know the risk of both before going for any.

Trading is not an easy thing. In my mind, those who succeed and have good skills in trading definitely have capital. Although it's not always like that. But in the process of being able to trade well, you already need capital to get there. You can gain a lot of experience from your trading. 
But everyone's path is certainly different. Even if you start small, if you're really good at trading, you will definitely be able to gradually grow your small capital.

[Inwestour]

I'm don't know if this has been discussed here, but I'm quite curious and I will like to hear from active traders here.

Trading a live account and trading a propfirm which one is best, they both have their advantages and disadvantage, but I feel the best is live account in my POV simply because I don't want to make money under another person's rules, but I'm still open to get why people trade propfirm probably it might be better or not?. There are reasons why one will make a decision of wich one is best for him or her
So to you all which one do you prefer and why do you prefer it.

I believe it's not so easy to secure a position with such a company and be given access to their trading funds. Therefore, for most traders, trading with your own money is the only option. And with prop firm trading, you'll only receive a portion of the profits, and often a very small portion, because the company is risking its own money by giving you access to its capital. Therefore, it's better to gradually trade with your own money, increase your trading account, and earn more, without depending on anyone.

[Agbamoni]

Trading a live account and trading a propfirm which one is best, they both have their advantages and disadvantage, but I feel the best is live account in my POV simply because I don't want to make money under another person's rules, but I'm still open to get why people trade propfirm probably it might be better or not?

Propfirm account are for traders who dont have the necessary capital to fund their live account. Propfirm traders are without options, which is the reason why they are bound to trade under the rules of the broker.

I advise you to trade using a propfirm account before going live. My reasons are that propfirm accounts help you get a level of exposure in managing an account. Trading a live account as an intermediate trader may open room for greed and low confidence. With a prop firm account, most traders learn the method of not being too greedy and being patient, which has helped them manage their live account better.

[Royal Cap]

If you think that you can pass prop firm's test, then go for it because it means that you're a good one but it's not easy as it goes as there are conditions that you need meet and follow. I'll choose my own live account because the thing about it is, I am trading my own money and I feel obligated to improve myself with my money without having any that much conditions to follow for myself and if it doesn't work well for me, no need to stress with the bad results.

The most difficult step is to prove yourself worthy. Because as far as I know you have to take two stage tests and then you will get the opportunity to trade with real money. And they will give you 70 to 80% of the money earned from that trade. That is, if you trade with 5000 dollars and from there if you can profit 300 dollars then 80% of 300 dollars, 240 dollars will be given to you. Before that the difficult challenge is that you have to pass the tests. So I would say that it is better if you have enough skills and capital then it is better to trade on your personal account.

[snowpega]

Trading is not an easy thing. In my mind, those who succeed and have good skills in trading definitely have capital. Although it's not always like that. But in the process of being able to trade well, you already need capital to get there. You can gain a lot of experience from your trading. 
But everyone's path is certainly different. Even if you start small, if you're really good at trading, you will definitely be able to gradually grow your small capital.

Yeah, you are correct; at this point, trading is not an easy thing. But I disagree with your second point because even if you have good trading skills then there are always chances of losing trades, and you can not win all trades. This is because of the unpredictable behaviour of the crypto market that leads you to the wrong verge even if you are a good trader. But yes, saying this will not be wrong: if you have good knowledge, then the risk of losing more capital can be reduced.

This is because you can safe your self form different kinds of market manipulative and trapping strategies of big hands or whales. As it's their favourite game, haha, right? Other than this, one more thing we should consider here to discuss at this poiint which is what kind of trading you are doing, whether it is leverage trading or spot trading. From my point of view, leverage trading contains more risk compared to spot trading. And in my whole crypto space career, I have never taken even a single leverage trade. What do you think about this?

[Emitdama]

---
So to you all which one do you prefer and why do you prefer it.

I tried to trade on propfirms, and there's one reasons why I did it.
I only have a small amount of money that's being used on live account, and because of that, the profit in the long term will be bigger if I trade on propfirms. Bigger capital, bigger chances of making more money hence, the propfirms are there.

This doesn't apply on many though, but let's face it. There are many out there who's like me - trading on small capital. Trading on propfirms can be profitable as long as you have a strategy that works for you when trading assets like Gold, NQ, ES, or even in Forex. I can't say that it's better trading on propfirms because I have failed many challenges on it, but one thing's for sure. Traders are trying to explore propfirms just for the sake of having an access to more capital therefore, higher profit.

As for your question, it depends on one trader to another. I prefer trading on propfirms because I have low capital on my live trading account therefore I have lower profit compared to if I'm holding a $100,000 capital on one propfirm account. I can make way more money doing it. I don't see any problems in doing propfirms. The problem is me and my strategy.

There is no doubt about the fact that if you risk only a small amount that you would be fine with losing, then it should not be all that complicated; we could definitely see this being something that is simpler and should not be an issue. Precisely, when you do not hold control on your own trading and indirectly someone controls your trading is good thing in my view because, it may eliminate your emotions completely whereas  the other person will not make emotional trades via yourself.

Obviously there are a lot of people who will not see this as a problem, and I think the best way to handle this would be just focusing on other parts where the majority of our money is, and ignoring the small part here. If it does well, then we would be happy, if it does badly, then we didn't put in that much anyway. But if it does well, then do not suddenly say "oh I made money here, I should put a lot more" and jump all in; be careful.

[Questat]

Trading a live account and trading a propfirm which one is best, they both have their advantages and disadvantage, but I feel the best is live account in my POV simply because I don't want to make money under another person's rules, but I'm still open to get why people trade propfirm probably it might be better or not?

Propfirm account are for traders who dont have the necessary capital to fund their live account. Propfirm traders are without options, which is the reason why they are bound to trade under the rules of the broker.

I advise you to trade using a propfirm account before going live. My reasons are that propfirm accounts help you get a level of exposure in managing an account. Trading a live account as an intermediate trader may open room for greed and low confidence. With a prop firm account, most traders learn the method of not being too greedy and being patient, which has helped them manage their live account better.

That's actually a good advice. The only problem is, if you have no established skills and strategies that make trading works, how will you manage to pass the evaluation and make use of the company's funds to trade?

Experience still matters especially if you want to apply for propfirm trading. Because once they have proven that you have great skills in trading, they won't hesitate to entrust their funds, but if you are still an intermediate trader, I doubt if they will hire you.

[laspol65]

Trading a live account and trading a propfirm which one is best, they both have their advantages and disadvantage, but I feel the best is live account in my POV simply because I don't want to make money under another person's rules, but I'm still open to get why people trade propfirm probably it might be better or not?. There are reasons why one will make a decision of wich one is best for him or her
So to you all which one do you prefer and why do you prefer it.

The comparison you made is not for comparison at all, I prefer live account the most. Because here you can trade with your own will, your own money, your own strategy and take your own risks, but the prop firm account is not like that. So the prop firm account will have someone else's money and the profits of your trade will be distributed between the two.

But anyway, I prefer live account the most and this is where you can test your own strategy and if the money goes to the wrong person, no one will have to be held accountable.

[Baki202]

I personally choose to trade my own account, and grow it bit by bit, but this is not the case of some individuals that want a good amount of capital to start,
But I personally choose to grow my account from small to getting bigger and bigger, lol not as easy as it sounds tho.
But the advantages of a live account surpassed that of propfirm. You will be able to withdraw when you like, no rules or what so ever, I think that's the real financial freedom 

Everybody has a plan, and when you have a plan, you will perform better, which is precisely what most traders are experiencing. They don't know how they want things to work out for them, and I appreciate that you have everything figured out so you don't make the mistake of trading without making any progress. They should also be aware that they need to be prepared and start small because some people will prefer to use real money.

Additionally, people want to use live accounts because they believe that if they lose money, they will be more serious about trading because that is the only way they will take it seriously. However, trading does not yield the desired results, so you must find a way to manage everything, including the risk, because if you don't, there will be more things that could affect you. You simply need to act in your own best interests rather than always following the rules in order to achieve that.

[Ziskinberg]

Seriously speaking, it's never a bad idea to go with propfirm trading especially if you have seen huge potentials in trading but with no sufficient amount of capital. That's actually a great opportunity to showcase your potential knowledge and skills, and train you to be more cautious and discipline in trading especially that you are trading with propfirm, not with your own trading capital.

However, if you have capacity to finance your own trade, that would be much better. You can maximize your trading profits and all of it will be yours, without no one to share since you are trading on your own. And won't be pressure as well especially if you end up with a trading loss, simply because no matter how positive you trade is, the chances to lose is still high.

[Russlenat]

While trading on your own is still the best choice, but I see trading with propfirm is also a good opportunity to maximize your trading potentials, and at the same time given that any time you can increase your capital and take leverage, maybe that's a great chance to execute the best of what you can do because when leveraging succeed, that also means a bigger portion of possible profits that you  can claim your own.

However, I won't deny, nothing can beat with trading on your capital, and learning on your own even if it means the hard way. At the end of the day, you will be the one who will take the full advantage when you trade just like a professional and veteran trader.

[Franctoshi]

I'm don't know if this has been discussed here, but I'm quite curious and I will like to hear from active traders here.

Trading a live account and trading a propfirm which one is best, they both have their advantages and disadvantage, but I feel the best is live account in my POV simply because I don't want to make money under another person's rules, but I'm still open to get why people trade propfirm probably it might be better or not?. There are reasons why one will make a decision of wich one is best for him or her
So to you all which one do you prefer and why do you prefer it.

Generally, the goal of trading is to make profit wether with another person's rules or yours, and besides, for you to trade profitably you must follow set of rules. Trading a propfirm account eliminate this fear that comes trading or managing your funds, because with the propfirm you are exposed to more capital and don't have to worry about the losses you incur if you're trading according to their rules.

[Sanitough]

We all have different preferences in trading and different financial conditions so we can't tell that one is better than the other, or one isn't advisable for traders. Trading with propfirm may be highly risky but it comes with more significant profits especially if the trading started with a good amount of capital. Of course, traders who will execute this should be more experienced and professional traders, as no company will also accept them if they aren't capable and well-skilled.

[Arenga pinnata]

Yes do agree that the main thing to put into consideration are capital and skills in the sense of giving a n example of someone having a good trading skills but not having a strong capital yet, you can gain access to big capital through a prop firm. But it nothing compared to having your own capital and also with your self skills, this gives you more control and control. One thing you are needed to take note is that you should know the risk of both before going for any.

Yeah, that’s true. At least for someone who has trading skills but no capital at all, trading for others such as through a prop firm is indeed a solution while saving money from a salary or similar sources. And once they have enough of their own capital, that trader can leave the prop firm and start trading independently with their own capital and under their own rules. So, yeah, it all depends on the situation, but clearly, if you have your own capital, it’s still more comfortable to trade with your own capital and under your own rules.

But the fact is, there are actually many professional traders who do trade for companies or institutions and are comfortable with that line of work. So, yeah, it seems everyone has a different definition of what “comfort” means.

[Hamza2424]

I'm don't know if this has been discussed here, but I'm quite curious and I will like to hear from active traders here.

Trading a live account and trading a propfirm which one is best, they both have their advantages and disadvantage, but I feel the best is live account in my POV simply because I don't want to make money under another person's rules, but I'm still open to get why people trade propfirm probably it might be better or not?. There are reasons why one will make a decision of wich one is best for him or her
So to you all which one do you prefer and why do you prefer it.

There are not many rules in prop firms. They just want results, and they have limits. If your loss passes a certain limit, then your account will be blown, but you can start another one. The benefit is you can access more capital by paying less, but you have to find a trusted prop firm which won't stop your payouts after you make them profits.

I will not choose prop firms because I can't dedicate my time to trading alone. I have a lot of things to do, so I am not free except weekends, and on weekends I might take some trades. But right now, the market is kind of in a consolidation phase, so I am not trading for now.

So bro, don't think too much about it. If you have not tried a prop firm, then at least use it once. Then you can easily decide which one is best for you.

[Awaklara]

Of course, traders who will execute this should be more experienced and professional traders, as no company will also accept them if they aren't capable and well-skilled.

Companies that provide capital definitely have standards in recruiting their traders. There are advantages and, of course, disadvantages. For those who have the skills and experience, there are of course, opportunities to make profits. But still, trading isn't easy, given situations that might put a bit of pressure on us. 

But I think there might be many traders interested in this kind of method if the risks that traders bear aren't too big.

[yhiaali3]

Trading with a real account and a trading firm are completely different, and each option suits a different type of trader depending on capital, risk tolerance, and so on.

In a real account you have 100% ownership of the profits and complete freedom to manage risks and choose trading times without restrictions, but risking personal capital may lead to its loss, in addition to the difficulty of achieving large profits if the capital is small.

While a trading firm is an opportunity to trade with huge capital volumes that you do not personally own, while retaining a high percentage of the profits achieved, its disadvantages are adherence to very strict rules such as maximum withdrawal ratios, evaluation test fees, etc.