7 Prop Firm Red Flags Guide (2024 Update)
Summary
TLDRThis video script discusses the hidden challenges and tricks of proprietary trading firms (prop firms) that may lead traders to fail. It highlights the importance of understanding the types of drawdowns, avoiding deceptive marketing tactics, and recognizing the potential for unfair practices like slippage and payout restrictions. The speaker emphasizes the need for traders to be wary of prop firms with unfavorable conditions, suggesting that a fair and transparent business model is crucial for success in trading.
Takeaways
- 🤔 The speaker expresses skepticism about prop firms, suggesting they may not have traders' best interests at heart due to their business model, which profits from traders' losses.
- 💡 Prop firms are seen as a tool that can provide opportunities like access to larger capital, but they may also use gamification methods to manipulate traders' emotions and psychology, leading to poor trading decisions.
- 📉 The speaker is critical of 'equity-based' and 'trailing' drawdowns, which can be unfair to traders, especially those who trade with high risk-reward ratios, as they can lead to account closures even after profitable trades.
- 📊 The importance of understanding the terms and conditions of prop firms is highlighted, as confusing language can mask unfavorable conditions that may trip up traders.
- 🚫 A warning against prop firms that impose minimum profit requirements before payouts, suggesting they may be trying to avoid paying out on small profits earned by traders.
- 💰 The speaker advises traders to be wary of marketing gimmicks and to assess the true value of a prop firm beyond just the initial cost or profit targets.
- 📈 A suggestion to use a ratio formula to compare the maximum drawdown to the total profit target to evaluate the fairness of a prop firm's challenge terms.
- 🛑 The potential issue of slippage is discussed, where some prop firms might intentionally provide poor trading conditions to cause traders to lose more money.
- ❌ A caution against choosing prop firms based on influencer endorsements or social media presence, as these can be misleading and not indicative of the firm's reliability.
- 🏢 The risks associated with prop firms that outsource their technology to third-party providers, which may lead to higher costs and potential instability.
- 📝 The speaker emphasizes the need for traders to have autonomy in their trading decisions, criticizing prop firms that restrict holding trades over weekends or during news events.
Q & A
What is the primary concern of prop firms according to the video script?
-The primary concern is that prop firms make money when traders lose money, and they may use hidden tricks to ensure traders fail, which in turn lines their pockets.
What are the three types of drawdown mentioned in the script?
-The three types of drawdown are balance-based drawdown, equity-based drawdown, and trailing drawdown.
Why is the balance-based drawdown considered fair by the speaker?
-The balance-based drawdown is considered fair because it allows traders to lose only a certain percentage of their account balance after closed positions, which protects traders and ensures they are not trading recklessly.
How does the equity-based drawdown differ from the balance-based drawdown?
-The equity-based drawdown is based on unrealized profits, meaning it can cause a trader to lose their account even if they haven't closed a losing position, and it can penalize traders for drawdowns in profit that haven't been realized yet.
What is the issue with the trailing drawdown according to the speaker?
-The issue with the trailing drawdown is that it reduces the trader's buffer for losses as they make profits, which can lead to account closure even after the trader has earned a profit, and it's seen as unfair because it doesn't reflect real-life trading conditions.
What is the speaker's opinion on the use of gamification methods by prop firms?
-The speaker believes that gamification methods like leaderboards and certificates are used by prop firms to emotionally manipulate traders, which negatively affects their psychology and trading strategy.
What is the ratio formula suggested by the speaker to evaluate prop firm deals?
-The ratio formula suggested is total profit target divided by max drawdown, which helps to determine if a prop firm's deal is favorable or not.
Why does the speaker warn against choosing a prop firm based on low prices or profit targets?
-The speaker warns that low prices or profit targets may come with hidden catches like equity-based or trailing drawdowns, large slippages, or high commissions, which can make it harder for traders to succeed.
What is the potential issue with prop firms that outsource their tech to external providers?
-The potential issue is that these prop firms may have to pay a significant percentage of their revenue to the tech providers, which can lead to financial instability and the need to make traders fail more often to maintain profitability.
What are some of the red flags the speaker advises to watch out for when choosing a prop firm?
-Red flags include equity-based or trailing drawdowns, minimum profit requirements for payouts, influencer promotions, and restrictions on trade holding times such as overnight or over weekends.
Why does the speaker suggest avoiding prop firms that have recently started or are promoted by influencers?
-The speaker suggests avoiding these firms because they may not have a proven track record, and their promotions may be marketing gimmicks rather than indicators of a fair and sustainable business model.
Outlines
💰 The Conflict of Interest in Prop Firms
The speaker discusses the inherent conflict of interest within proprietary trading firms (prop firms), which make money when traders lose. They mention that while prop firms offer access to larger capital, they may employ tactics to encourage traders to fail, such as gamification methods like leaderboards and certificates, which play on traders' emotions and competitive nature. The speaker intends to reveal red flags and hidden tricks used by prop firms to maintain profitability at the expense of traders, advising on how to avoid unfavorable conditions and build strategies against them.
🚫 Warning Signs of Unfair Draw Down Policies
This paragraph delves into the issue of draw down policies in prop firms, which can be detrimental to traders. The speaker explains three types of draw down: balance-based, equity-based, and trailing draw down. The balance-based draw down is considered fair, allowing a trader to lose a percentage of their account balance. However, equity-based and trailing draw down are criticized for their potential to cause traders to lose their accounts due to unrealized profits or a moving margin for error, respectively. The speaker advises traders to avoid prop firms that use these latter two types of draw down.
📉 The Risks of Misleading Marketing Tactics
The speaker warns about prop firms using marketing gimmicks to attract traders with seemingly attractive profit targets and low prices. They introduce a formula to evaluate the fairness of a prop firm's deal, which is the ratio of total profit target to the maximum draw down. The speaker illustrates how a seemingly lower profit target might not be a better deal if the draw down is also lower, as this could lead to an unfavorable ratio. They caution against choosing prop firms based on influencer promotions or social media presence and emphasize the importance of a firm's reputation and review history.
⚠️ Red Flags in Prop Firm Operations and Practices
The speaker outlines several red flags to watch for in prop firms, including unfair payout conditions, reliance on tech providers, and restrictions on trade holding periods. They criticize firms that delay payouts until a minimum profit is reached, arguing that this is a tactic to avoid paying traders what they are due. The speaker also warns against new prop firms that may not have the financial stability to sustain payouts in the long term, especially if they are outsourcing tech solutions and paying high percentages of their revenue to tech providers. They advocate for transparency, reasonable profit targets, and the freedom for traders to make their own decisions without undue restrictions.
Mindmap
Keywords
💡Prop firms
💡Draw down
💡Equity-based draw down
💡Trailing draw down
💡Gamification
💡Risk management
💡Slippage
💡Payout
💡Influencer
💡Tech provider
💡Profit Target
Highlights
Prop firms may not be on the trader's side due to their business model, which benefits from traders' losses.
Hidden tricks by prop firms include gamification methods like leaderboards and certificates to emotionally influence traders.
Red flags for prop firms include unfair draw down types: balance-based, equity-based, and trailing draw down.
Balance-based draw down is considered fair, protecting traders from reckless trading.
Equity-based draw down can be deceptive, affecting traders even with unrealized profits.
Trailing draw down is criticized for removing traders' buffers earned through profits.
Prop firms may use deceptive marketing to attract traders with low profit targets and hidden conditions.
A ratio formula is suggested to evaluate the fairness of prop firm deals based on max draw down and total profit target.
Slippage issues are highlighted as a common trick used by prop firms to cause traders to lose more than expected.
Payout policies that require a minimum profit before allowing traders to receive their earnings can be restrictive.
Influencer-endorsed prop firms may not be the best choice due to potential conflicts of interest and marketing gimmicks.
Prop firms that outsource their tech may be at a disadvantage, paying high percentages to tech providers, affecting their sustainability.
Restricting trade holding times, such as overnight or over weekends, may be a sign of a prop firm trying to control traders' profits.
Prop firms that deny payouts or restrict account access for profitable traders may not be acting in good faith.
Newly established prop firms may lack the stability and reputation of those that have been around for years.
A part two of the red flags is suggested, indicating there are more issues to be aware of in the prop trading industry.
Transcripts
when you make money we make money by the
trader for the Trader the reality is as
you already know prop firms are not
really on our side now they're a
beautiful tool wonderful opportunity for
any Trader to be utilizing because you
can access larger capital and capitalize
on a skill set but the problem is the
prop firms are not on our side as we
know from the business model they make
money when we lose money therefore
they're going to put hidden tricks in
place for us to trip over for us to fall
and keep lining their pockets by buying
more and more challenges and in a
previous video we spoke about how they
do that various gamification methods
remember the leaderboards and the
certificates and we spoke about in that
video our PL firms do these things for
the only reason to get us emotional to
get us playing on our status and
competing with one another all of these
things feeding negatively into our
psychology and framing Us in the wrong
way as Traders so that we are more
likely to blow accounts so in this video
I'm going to go through the red flags of
prop firms the hidden tricks that they
are doing that are only there for us to
keep losing money once we are aware of
this then while we are armed we know
which PL firms to avoid and we know how
to build a strategy around these
conditions so that we do not fall victim
to these unfavorable conditions now the
first one that I'm going to mention is
the three types of draw down now when I
found about the two types of draw Downs
that certain prop firms are doing it
actually made me angry I was like what
the is this this is only there to make
Traders fail and we should also
completely avoid the Prof Firs that are
utilizing the two types of draw down
that I hate so when it comes to the
three types of draw down we have a
balance-based draw down an equity based
draw down and a trailing draw down now
the balance-based draw down is the one
you're used to it's the one that makes
sense it's the one that's fair is to say
that if I have 100K account I'm only
allowed to lose 10% after a 10% draw
down when I've lost more than $10,000 on
a $100,000 account I'm out I failed the
challenge and I have to go buy a new one
that's fair that's there to protect us
to make sure you're profitable and
you're also not trading recklessly now
the problem is the other two types and
to be honest I read through the websit
and I read certain terms and conditions
where they're describing the equity
based draw down and the trailing draw
down and they word in such a complicated
way and use confusing terminology so
people just don't get it and therefore
the only way you understand it is when
you lose your first account so the next
one is equity based draw down so that's
basically to say if I start off with
100K accounts let say I'm allowed a 10%
margin the maximum I can lose is $10,000
so the moment I go below 90k I lose the
account and that's balance-based meaning
on closed positions once I've taken
profit or hit stop- loss once I'm out of
the trade then that's going to update my
balance and then I see am I on 89k then
I've blown the account if I'm on 92k
then I still have space to climb out of
my draw down now unfortunately the
equity based one is on unrealized profit
it's to say that even if you haven't
closed the position you can't lose more
than the percentage they say let's say
you're someone like me who trades high
risk reward I've shown a million times
on many of my case studies or my track
record all my signals that I've done on
Twitter I can trade between a 3 to 7 pip
stop loss my average stop loss is about
four to 5 Pips let's say I take a trade
with a four pip stop loss and I'm
targeting London volatility my TP I'm
going for a 1 to 10 risk reward just for
example I might take an entry on a trade
and I might go into profit and I mean
okay 1% up 2% up three four maybe I get
to 7% up I haven't taken a partial yet
for example now I'm 7% floating profit
and I haven't closed the trade yet now
let's say that position has a healthy
retracement 40% retracement a 50%
retracement and then it continues in my
direction and then I finally close out
for 10% profit so in the end what
happened a profitable trade I made 10%
profit and maybe I even passed the
challenge well in equity based draw down
I might still fail that challenge now
what these prop firms do is after a
certain point in the day they'll say
okay that's your equity for the day and
if you go below that now 5% or 10% even
if you didn't close a position you lose
the account so for example in the
situation where I'm 7% up and then I
have a retracement and it goes to just
2% up floating profit not a closed
position I actually went from 7 to 2 I
lost 5% in unrealized profit and then it
went on and hit my TP and I locked in
10% profit so my balance went from
100,000 to 110,000 I made 10% gain but
they saw that My Equity it went up to 7%
back down to 2% and then contined to 10%
that's when I locked it in that portion
in the Middle where it went from plus 7
to plus2 that was enough to violate an
account that is not fair that is just a
trick for you to fail that is prop firms
trying to grab your money now when I
mentioned about this online certain
Traders were just coping they were just
like oh but it makes you encourages you
to take profit oh but you know a
sensible Trader wouldn't even have that
small of a stop loss oh you shouldn't
even be doing such a high risk reward
this is just excuses for people to
accept the nonsense that prop firms are
doing we shouldn't tolerate this because
of course we can optimize yes we can
take partial earlier on yes we can
modify our strategy but what are the
domino effect of that as I've mentioned
in previous videos your profit taking
system is as important as your risk
management your profit taking systems is
detrimental because we optimize our
profit taking systems for data therefore
we don't optimize on a trade by trade
basis we optimize our portfolio so
skewing things in one way or another is
going to have a ripple effect a
butterfly effect Way Beyond what we just
see because it might overall affect our
profitability it might even be enough to
make us not profitable just by the way
we manage our profits now the last one
that makes me angry is the trailing
based draw down is basically that if I
start at 100K account and then I make
profit let's say I make 110k and I'm now
I'm up 10% initially my margin for error
would be what if I start at 100K my Max
draw down was $10,000 so I couldn't go
below $90,000 so it starts at 100K I
can't go below 90k and then when I make
profit to 110k well now I have a $20,000
buffer because I can go from 110 back
down to 100 and all the way down to 90k
before I lose the account so as you gain
profits you increase your buffer and
therefore your draw down can get larger
and larger and that's a safety net
trailing draw down is a draw down that
follows you so if I make 10% profit then
my draw down goes from 90,000 to 100,000
it always follows me it Trails me so
let's say I'm sitting on $110,000 I've
made 10% gain and then I have a losing
period a normal losing period that can
happen and maybe unfortunately I go from
110,000 all the way back to to 100,000
in a balance-based prop firm that's
completely fine I didn't hit $90,000 I
haven't breached the account so I go
through a little bit of a losing streak
and I can build it back up now with a
trailing base draw down it followed me
so even though I was 10% up my account
was at 110,000 and then I had a 10% loss
and then I started back where I began at
100,000 that is enough to lose the
account meaning to say they cut your
buffer for no reason you earned the
buffer you earned a bit of profit and
they said we're going to follow you now
certain Traders will say ah but in
instills good habits it makes you it
forces you not to have losing streaks it
forces you to follow good risk
management which is true you should
follow risk management but why if I've
earned profit in an account why would
they Trail my draw down because that's
not real life that doesn't help anyone
that is only there for you to lose money
in a normal situation where you can have
a losing streak now that's not fair so
red flag number one is avoid the prop
firms that do Equity based draw down or
trailing draw down and only work with
balance-based draw down because that is
the only way that it's going to be fair
for us the next red flag is how they
trick you into believing something is a
good deal versus a bad deal now prop
firms know what we focus on they know
what the industry wants they want cheap
prices and easy profit targets okay
what's the cheapest one okay this one's
cheap and it's a 6% Target let's work
with them but what they won't realize is
what's the catch don't fall for the
marketing gimmicks don't fall for the
Trap they are only giving you a 6%
profit Target or an 8% profit Target to
invite your money what they'll even do
is they'll say you can do it in one
phase you can do it in two phases or you
can do it in three phases so a friend of
mine Kimmel which you've probably seen
his YouTube videos he actually gave me
this idea of how about we make it a
formula let's not just get lost in the
numbers but let's do it as a ratio
between what is your Max draw down and
what is the total profit Target you need
so let's say you're doing a two- Fae
Challenge and your profit Target is 10
and 5 so therefore you have 15% total
profit gain and your Max draw down is
10% you can go from 100,000 to 90,000 so
if your Max draw down is 10% your profit
Target is 15% and then you do a division
total profit Target divided by Max draw
down in this case is 1.5 so in this case
this is reasonable then you find another
PL fir that is for example it's a 6%
Target and a 6% Target so you think okay
well the other one it was I had to get
10% in Phase One this is now only 6% I
don't have to make an extra 4% so you
think that's perfect but then what you
won't realize is that PL firm will not
give you a 10% draw down they'll give
you maybe only a 5% draw down so then
you realize you have 12% profit Target 6
plus 6 and then your Max draw down is
only 5% and then you divide that by the
Max draw down so let's say 5% that means
the result of that formula is 2.4 so in
this case that ratio is not as favorable
as the 1.5 of the other firm so just
because it looked more appealing of 6
plus 6 doesn't mean it's a better deal
so what I would say is don't always go
for the cheapest PL fir don't always go
for the prop firm that has the less
profit Target because they're going to
do other things to make it harder for
you anyway usually these firms are going
to do the equity based draw down or the
trailing draw down or probably have
large slippage or probably have large
commissions or whatever they're going
just make life harder for you rather
work with a reputable PL firm that has
reasonable targets I think what's fair
in this day and age is Phase 1 8% Phase
2 5% anything around that is ideal we
don't need to chase lower and lower the
next one is slippage now this is
something that we all know about we
heard about the mff situation where they
had literally documents leaked saying
slip them to hell were literally
targeting traders to give them large
slippage to lose accounts and that's why
they got shut down and that's why they
got investigated by the US Regulators
this is something that many prop firms
are doing and we have to be careful
therefore it's important to work with a
prop firm that has a good reputation
certain prop firms I won't name them but
they are known to do this they are known
to give you 10 pip slippage on EU
regularly and it's kind of like you just
have to accept it if you want to work
with prop firms you have to deal with it
that is nonsense once again work with a
prop firm that is not going to give you
slippage if you have a five pip stop
loss they should respect your five pip
stop loss and not just give you randomly
a 10 pip stop stop L and therefore
double the amount of money you lose just
by accident and they'll say oh but you
know life trading conditions and that's
the cost of Forex and brokerages do this
too well this is a simulated environment
this is not really live money this is
not really live marketing conditions so
therefore they're only doing this for
you to lose money don't tolerate that
now another red flag that you don't
realize until it's the day of your
payout certain prop firms will only give
you a payout after you have a minimum
profit which is strange because it's
kind of like if I make profit I should
get my payout if I even make $100 I
should get my profit split of that and
to be honest that's a strategy that you
should be doing let's say you've got a
funded account now and you know you paid
$500 for that account well you know that
the moment you lock in even just $100 of
profit you know that they will refund
you your evaluation fee so your
objective is just lock in a very simple
payout so therefore you made a little
bit of profit you've got your profit
splits and then you've also got your
refund on your challenge fee so
therefore that account is now risk-free
because you took out your initial
investment and therefore you can use
that to buy more and more accounts
that's the way we should approach this
now while certain prop firms do they'll
give you cheaper prices they'll give you
less profit targets and they'll say come
trade with us we have great conditions
and all of these things and then what
will happen is you trade that account
you get funded let's say and then even
you go on and you continue to trade it
and you lock in let's say 1% gain and
you're okay I've locked in 1% I want my
refund of my valuation fee that I'm due
and then also I want to lock in my 1%
payout and therefore in $100,000 account
you say Okay 8020 split I want $800 plus
my initial investment that's great now
what this PL for will come back to you
and say is hey well you can't get a
payout until you at least make let's say
3% or let's say 5% so they're basically
saying even if you make 2% we're not
going to pay you even if you make 1%
gain we're not going to pay you you have
to make a minimum profit for you to get
your payout why is that it's to force
you to trade it's to force you to trace
a Target and it's to avoid them
basically paying you out on your first
,000 that you deserve that is not for
any benefit that is only there for them
to be cheeky for them to save money and
not pay you out so what I'd say is avoid
prop firms that are doing this that are
giving you minimum withdrawal targets no
it's a prop firm it's a live account we
agreed if I make profit I get my payout
on the agreed split that's how it should
be another red flag that you need to
watch out for is don't go with the ones
that your favorite influencer is
promoting don't go with the pl firms
that have the biggest Instagram Pages or
the best YouTube channel or whatever
because these are all marketing gimmicks
look at their reputation look at their
reviews look at what people talk about
them online if you find a profer that
has a good price they have hundreds of
thousands of followers on Instagram you
even can see the CEO and you know who's
behind it but then you go on their trust
pilot or you look around on Twitter and
all you see is payout denied account
access restricted people making too much
profit and then they cut them off
randomly the problem firms that fail
your challenges because they felt like
it because they said we did a review and
we found this did not follow our terms
they give this approach of we are
subjective and we can choose who we give
in a count to or not and they'll
basically say if you're too profitable
if you have too many payouts we're going
to Blacklist you and that's happened to
a lot of people that I know so we have
to be careful about these proforms that
are doing these dirty tricks because
they have the followers that would just
say okay well we don't need you we got
plenty of customers but that's not
honest ethical approach and I don't want
to invest my money in a prop firm like
that every influencer and their mom is
starting a prop firm there's hundreds to
choose from and some of them just
started a month ago 6 months ago they
are not true businesses we need to work
with the ones that have been around for
2 years 3 years 5 years that have a
stellar reputation and have stood the
test of time now the next red flag I'm
going to let you in on a little secret
maybe you didn't know this but prop
firms they need a little bit of tech
they need a software to actually run all
of this on some prop firms build that
themselves and they'll spend $200,000 or
$500,000 building their own website
building their own infrastructure
building their own risk management
systems and actually building everything
internally for everything that is
required to actually sustain a prop firm
now a lot of the influencer based ones
or a lot of these new prop firms that
pop up basically 95% of prop firms they
Outsource that they pay a tech provider
to actually do all of this for them and
there's two main companies that are Tech
providers one of them has their own prop
firm so you can already start to think
if this one prop firm competing with 50
other prop firms that they are providing
the tech solution too they're
purposefully never going to let other
prop firms outshine them they're not
going to let them take their market
share so if we know that one prop firm
is feeding many PL firm's Tech Solutions
I don't want to be working with those
ones because this main PL firm is always
going to make it worse for them so that
they can be the best one second of all
and more importantly is working with a
tech provider and externalizing that
component means that you have to pay
them a percentage of your Revenue so
certain prop firms that work with these
Tech providers they pay them a setup
cost and they also give them 30 to 40%
of their revenue now why is that
important because right now there is a
price War every PL fir is trying to get
cheaper and cheaper and undercut each
other and that's great for the consumer
because we just get the best prices but
the problem becomes is they're going to
cut Corners somewhere else if they can
provide a cheap service to you it means
they need to make you fail even more so
that they can still make money
especially if they have to give 40% to a
tech provider then they have to have
about 25% of their revenue to pay out
customers then they have their costs of
maintaining a staff marketting marting
website all of these other costs and
then they also have to pay taxes we can
see that this 40% of the tech provider
eats in hugely to their margins but
they're still trying to cut their prices
meaning that they are going to implode
maybe one day they're not going to be
able to pay out and a lot of these PL
Firs that are around right now will not
be around in 5 years because the
founders is their first business they
don't have money to reinvest and if they
get big payouts they'll go bust because
they can't keep affording to do payouts
because they pay 40% of the tech
provider and then 20% in taxes let's say
what's really left for them nothing so
we know that if they keep making it
cheaper and cheaper and cheaper we know
that they're eating more and more into
their profit margin and eventually these
prop firms will collapse that's why I
always say I would rather work with a
prop firm that even if it's a little bit
more expensive to buy the evaluations
but if they have their own technology
well that's 40% they don't have to give
to anyone else they can still afford to
do payouts and that's important because
as a customer as a user as a Trader I
want to make sure I'm working with a
platform that it is stable that is
sustainable and that is not using all of
their cash flow just to pay out now a
few little red flags are for example if
they don't let you hold your trades over
the night or if they don't let you hold
your trade over the weekend or if they
don't let you hold your trades over news
now that is up to me if I'm trading and
I have a strategy and I want to hold a
trade overnight I should be allowed to
if I want to hold it through a news
event because I'm break even I should be
allowed to if I even want to enter
during a news event it's a little bit
risky but if I want to it's on me I
choose to do that if I want to if I want
to hold a trade over the weekend because
it hasn't met my profit Target yet it
hasn't reached my TP and I know that
maybe next week on Tuesday it might hit
then I should be allowed to do that so
prop firms that are restricting us and
they're saying is to force you to take
profit so you can always be growing your
account is to stop you getting caught in
news volatility sure they're justifying
it but they're only doing that to give
you a reason to put that condition there
in the first place the reality is a real
Trader doesn't need that we don't need
to be babysits we don't need to be told
how we should trade or whatever they're
not doing that to help us they're only
doing that so you're forced to take
profit before you want to so that your
profits aren't as big as you want so
you're forced to take it before news
event or you can't enter 30 minutes
before a news event but what if you get
a valid entry and then the news event is
the Catalyst to hit your take profit
well you missed a good trade then or
they force you to cut it over the
weekend or overnight it's basically only
there to force your hand is to force you
to make decisions you didn't want to
make to ultimately affect your
profitability therefore to me it makes
sense to work with a prop firm that is
not doing that why would I make life
harder for myself if I'm allowed to do
it based on my back testing based on my
Edge based on my data I should be
allowed to do it because my goal is to
make profits and if that's what the prop
firm wants when we make money you make
money then they should let us the
reality is when we make money they lose
money so they'll do these things and
they'll convince you it's for us that's
a lie so we have to be careful so ladies
and gents that's my list of initial red
flags and you're probably thinking damn
there's a lot and to be honest there's
even more red flags so maybe I'll make a
part two and let me know in the comments
if you want to hear more red flags from
me but the reality is we can't just
focus on the cheap prop form or the one
that has the best marketing budget
because followers does not equal better
prop fir or cheaper price doesn't equal
better prop fir or less profit Target
doesn't mean better PL fir because you
have to realize all of these hidden
things that they do to make us fail or
to make life harder for us so now that
we know these things we can start to see
what we can avoid so that we don't keep
losing money on profam challenges
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