Easily Pass Funded Trading Accounts by ICT

Summary

The speaker critiques the flawed strategies behind funded trading accounts, emphasizing that these programs are designed to exploit traders through impulsive behavior and poor risk management. The core message is to avoid trading multiple contracts impulsively and instead focus on trading with a single contract, following a sound, logical risk management model. The speaker highlights the futility of trying to recover losses by increasing contract sizes, which ultimately leads to failure. Instead, success lies in consistent, disciplined trading with smaller positions, free from the pressures and traps these funded accounts create.

Takeaways

• 😀 Funded accounts are designed to exploit traders by encouraging impulsive trading behaviors and excessive risk-taking.
• 😀 The temptation to trade with multiple contracts to recover losses quickly leads to repeated failures and resets.
• 😀 Following a disciplined strategy, such as trading only one contract at a time, is essential for long-term success.
• 😀 A small drawdown, like a 5% loss, should not be seen as a failure but rather as a normal part of trading.
• 😀 Impulsive actions driven by fear of losing money can cause traders to deviate from sound risk management practices.
• 😀 The goal of trading is not to make quick profits but to develop patience and consistency over time.
• 😀 Funded trading companies often dangle the carrot of higher leverage (e.g., 15 contracts) to lure traders into risky decisions.
• 😀 The key to success in trading is not the amount of capital you have but the ability to manage risk and follow a well-structured model.
• 😀 Emotional reactions, like feeling trapped or overwhelmed, are common when trading under high-pressure conditions.
• 😀 A successful trader focuses on taking small, consistent gains rather than trying to recover from large losses.
• 😀 Repeatedly resetting funded accounts and paying fees without seeing real progress is not a sustainable path to success.

Q & A

What is the main concern the speaker has about funded trading accounts?

The speaker is concerned that funded trading accounts encourage traders to take excessive risks by trading too many contracts, leading to frequent failures and repeated losses. The accounts are designed in a way that sets traders up for failure, as they often fail to use sound risk management and impulsively increase their trade size.

Why does the speaker suggest trading with only one contract?

The speaker suggests trading with one contract to emphasize discipline and sound risk management. Trading smaller amounts helps avoid impulsive decisions and reduces the chance of significant losses. It ensures that traders follow a proven model rather than chasing quick recovery with larger trades.

What does the speaker mean by 'the carrot' in the context of funded accounts?

The 'carrot' refers to the enticing offer of being able to trade multiple contracts, such as 15, which is presented by funded accounts. While the offer sounds appealing, it leads traders to take on more risk and eventually fail, as they are not prepared to trade with such large positions.

What is the problem with traders trying to recover losses quickly by increasing their trade size?

The problem is that trying to recover losses quickly by increasing trade size is an impulsive reaction that leads to even more significant losses. Traders often make poor decisions when they are desperate to 'fix' their losses, which exacerbates the situation and causes a cycle of failure.

How does the speaker relate their son's experience to the broader issue of impulsive trading?

The speaker relates their son's experience of feeling 'trapped in a small room' to the feeling of being restricted by the rules of funded trading accounts. This feeling stems from the pressure to trade larger positions to recover losses, which reflects the impulsive and risky behavior that the speaker warns against.

What is the speaker's opinion on using a high-risk percentage in trading?

The speaker believes that using a high-risk percentage, such as 5%, could lead to failure in funded account challenges. They argue that such a large risk on a single trade is unsustainable and goes against sound trading principles. A small drawdown from a high-risk trade does not define long-term success.

How does the speaker view the financial cost of participating in funded account challenges?

The speaker sees the financial cost, often as low as $99 for each challenge, as part of a cycle that entices traders to keep resetting their accounts after failures. This creates a situation where traders repeatedly pay without learning proper risk management or trading discipline.

What lesson does the speaker want traders to learn from their experience with funded accounts?

The speaker wants traders to learn the importance of patience, discipline, and adherence to a consistent, lower-risk strategy. By following the model of trading one contract and using sound logic, traders can avoid the destructive cycle of impulsive decisions and repeated failures.

Why does the speaker emphasize the importance of not trading multiple contracts when one is not fully prepared?

The speaker emphasizes this because trading multiple contracts when unprepared increases the risk of failure. If traders do not have the knowledge or experience to manage larger positions, they are more likely to make mistakes, leading to losses and a higher chance of failing funded challenges.

What does the speaker mean by 'beauty for your ashes' in the context of trading?

The phrase 'beauty for your ashes' symbolizes the idea that even after repeated failures and mistakes in trading, the trader can start over and rebuild. The speaker suggests that while it may feel like the mistakes are swept under the rug and forgiven, the cycle of failure persists without addressing the root causes, such as impulsive trading behavior.