Don’t trade with prop firms !

Name: Don’t trade with prop firms !
Uploaded: 2024-05-11T22:56:00+00:00
Duration: 1 min
Channel: Sean Twizer
Description: In this monologue, professional trader Sean Twizer warns against using proprietary trading firms (prop firms). He argues that low‑cost prop accounts…

11 May 2024 · 1 min

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In this monologue, professional trader Sean Twizer warns against using proprietary trading firms (prop firms). He argues that low‑cost prop accounts (typically $30‑$50) foster a “fuck‑it” mentality akin to paper trading, because the trader can repeatedly lose the small amount and simply purchase a new account. This mindset prevents traders from experiencing real emotional stakes and hinders skill development. Twizer advises that if a trader cannot afford to fund their own account, they should save until they have sufficient capital, as trading with personal money creates a different psychological dynamic. He also notes that only 10‑15% of traders pass prop‑firm evaluation tests, and merely 1‑2% become successful, underscoring the difficulty of developing genuine trading competence under the prop‑firm model.

Chapters

Do not trade with prop firms. When you're trading with prop firms, you have what I call the fuck-it mentality, which is basically the same as paper trading. When you buy a prop firm account for $30 or $50, the maximum amount of money you can lose is $30 to $50. And then after you burn that account, you just buy a brand new one, right? Now, as a professional trader, I can tell you that causes you to have the fuck-it mentality. And the problem with the fuck-it mentality is you're not going to actually feel emotions and develop as a trader. You need to have skill in the game. If not, you're just not going to learn properly. And if you cannot afford to fund the trading account, you shouldn't be trading. You should save your money, and then once you saved enough money, you can then fund your trading account. You're not going to trade the same if it's your money versus a prop firm's money. And there is a learning curve that every profitable trader needs to go through. And that's exactly the reason why only 10 to 15% manage to pass these tests, and only 1 to 2%