What is a Funded trader??
Commonly referred as someone who has trading skills that trades another person's money. There are many ways for someone to become a funded trader. Some invests someone's money to make profits, some use prop firms that provide them with capital to start trading and others do participate in competitions with of provided liquidity (initial capital) because of their competitive trading skills. In all these ways one needs to have good trading skills and a brokerage firm that supports his/her goal.
Talking about a prop trading firms that can offer you capital, they are common nowadays. In my opinion any person should consider the following factors before joining and prop trading firm:
Most prop trading firms do offered challenges before they can give you capital for investment. This always helps to develop the needed discipline in trading especially in capital management. Capital management usually involves the maximum drawdown per day and per trading period during the evaluation stages. This vary depending on the prop firm.
This is also referred as scaling up and majorly depends on the prop firm and demands you carry out research before you choose one in your trading journey. Most prop firm can offer capital within a range of $100,000 to $600,000. Some firms do even up to $5 million depending on your discipline in managing capital. It all goes down to how good you are in trading.
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