Getting a funded account is one of the best ways to trade with big capital without risking your own money. But to pass the challenge, you need more than just luck you need patience, discipline, and a solid plan.
1. Understand the Rules
Every prop firm has its own rules. Some allow news trading or overnight positions, while others don’t. Always read the rules carefully before you start trading. Many traders fail not because of bad trades, but because they break simple rules.
2. Manage Your Risk
Whether you’re a beginner or experienced trader, never risk more than 0.5% to 2% per trade. Your main goal is not to hit profit targets fast, but to avoid losing the account. Slow and steady wins the race.
3. Follow a Trading Plan
Have a clear plan before you start. Know your entry and exit, your stop loss, and your target. Don’t trade randomly or out of emotions. Follow your setup like a machine. Consistency matters more than speed.
4. Control Your Emotions
Prop firm challenges test your psychology more than your skills. Don’t chase losses or try to double your profits in one day. Stay calm and let your edge work over time. Behave more like a machine than a human.
5. Choose the Right Account Type
There are different types of funded accounts:
- 1-Step Account: Quick to pass but has low drawdown limits (around 4–6%).
- 2-Step Account: Takes longer but offers higher drawdown (usually 10%).
- Instant Funded Account: You get access right away, but risk rules are very tight. (also low drawdown around 5%).
I always suggest starting with a 2-step and small account like $5k or $10k. Once you get your first payout, then move to a bigger account like $100K or $200k. That’s when your trading can truly change your life.
6. Learn Cheap Before It Gets Expensive
Don’t rush to buy big accounts right away. Practice on demo or smaller challenges first. Learn your mistakes when it’s cheap because once real money is involved, every error costs much more.
Conclusion:
Passing a funded account is not about taking big risks. It’s about discipline, patience, and smart money management. Focus on protecting capital, follow your plan, and trade like a professional. The goal is not to pass fast it’s to stay consistent for the long run.