Can being a funded trader make you rich? - Honest opinion

Summary

The speaker, a funded trader with $600k capital, discusses the potential to become rich through trading with prop firms. They define 'rich' as having a significantly higher income than expenses, allowing financial freedom. Emphasizing the importance of consistency, strategy, and living below one's means, they advise on managing capital and suggest having multiple income streams. The video aims to provide realistic insights into trading and wealth-building, encouraging viewers to focus on skill development and smart financial management.

Takeaways

• 💼 Being rich is defined as having a significantly higher income than expenses, allowing for financial freedom and choice.
• 🌍 Location impacts the feasibility of becoming rich through trading, with higher costs of living in cities like London or New York making it more challenging.
• 💡 Consistency in trading is key to becoming rich, which requires a solid understanding of one's trading strategy before joining prop firms.
• 🏦 Living below your means is crucial, especially in high-cost areas, to ensure a surplus of income over expenses.
• 🌐 In countries with a weaker local currency, a funded trader can live comfortably on a smaller amount due to currency strength.
• 💰 Being funded with $50-$100K and receiving 2% payouts can lead to significant earnings, especially when withdrawn in a stronger currency.
• 🚫 Avoid wasting money; spend on valuable experiences and milestone rewards, not on unnecessary items.
• 🔄 Diversify capital across different prop firms and alternate payouts to maintain consistency and reduce risk.
• 🏡 Having more than one income stream is advisable, as it can supplement trading profits and provide additional financial security.
• 💼 To become wealthy, one needs to move beyond prop firms to managing larger investment capital, such as hedge funds or real estate portfolios.
• 🌱 Building wealth takes time and patience; focus on skill development and capital management for long-term success.

Q & A

What is the speaker's current capital in the trading firm?

The speaker currently has 600k in capital.

What is the speaker's definition of being rich?

The speaker defines being rich as having a significantly higher income than expenses, which allows one to have choices and walk away from undesirable situations.

How does living in a high expense area affect the potential to become rich through trading?

Living in high expense areas like London, New York, or Miami makes it more difficult to become rich through trading due to higher living costs, requiring a slower approach, learning the skill of trading, and living below one's means.

What is the importance of consistency in becoming rich as a funded trader?

Consistency is crucial for becoming rich as a funded trader because it allows for steady payouts and the ability to withdraw funds without depleting capital.

How does the speaker manage their finances to maintain a higher income than expenses?

The speaker manages their finances by splitting their capital into different segments, alternating payouts, and living below their means.

What is the significance of knowing one's trading strategy before joining a prop trading firm?

Knowing one's trading strategy before joining a prop trading firm is significant because it reduces the risk of losing money and increases the likelihood of becoming rich.

How does the speaker suggest using milestones to manage spending?

The speaker suggests buying significant items like cars or watches only as milestones, meaning they are purchased after reaching certain financial goals.

What is the speaker's advice on having multiple income streams?

The speaker advises having more than one income stream, such as trading and another skill or job, to build wealth and provide financial security.

How does the speaker view the role of personal accounts in wealth building?

The speaker sees personal accounts as a way to take higher risks with a set amount of capital, knowing the system and potential drawdowns, which can contribute to wealth building.

What is the difference between being rich and becoming wealthy according to the speaker?

The speaker differentiates being rich as having a higher income than expenses, while becoming wealthy involves owning significant investment capital, managing larger funds, and potentially having a diversified portfolio including real estate.

What is the speaker's stance on the importance of character and morals in wealth building?

The speaker emphasizes that character and morals are the most important aspects of wealth building, as they form the basis of one's legacy and should not be compromised for financial gain.