FUNDED ACCOUNTS ARE TRASH!!!!!!

Summary

In this video, the speaker discusses the dual nature of prop trading firms, highlighting both their potential benefits and significant risks. They caution about the pressure and strict rules associated with prop firms, which can be detrimental to new traders. The speaker also addresses the issue of bots passing initial phases, which bypasses the learning process. They argue that prop firms might be misleading, with a high failure rate among traders and suggest that new traders should focus on learning and consistency rather than large capital gains. The video concludes with advice to use prop firms cautiously and consider them only after establishing a solid trading foundation.

Takeaways

• 🤔 The speaker expresses mixed views on prop firms, acknowledging both their potential benefits and significant drawbacks for traders.
• 📈 Prop firms can offer large amounts of capital, which may amplify gains, but they also come with strict rules that can hinder learning and strategy development.
• 🚫 The speaker warns against the pressure and potential for failure when new traders use prop firms without a solid understanding of trading strategies and risk management.
• 💡 There's a critique of the current trend where new traders are enticed by the prospect of large funded accounts without the necessary skills or experience.
• 🛑 The use of bots to pass initial phases of prop firm challenges is highlighted as a way to 'cheat' the system and skip essential learning stages.
• 💼 The speaker suggests that many prop firms may not be as secure or reliable as traditional brokers, due to less regulation and the potential for sudden rule changes.
• 💰 There's a strong recommendation for new traders to start with smaller accounts and learn to trade consistently before considering prop firms or funded accounts.
• 📉 The speaker points out the high failure rate among traders using prop firms, suggesting that the majority end up funding the success of a small percentage.
• 🔍 A call for vigilance is made, advising traders to check the legitimacy and regulation status of prop firms before committing any funds.
• ⏰ The video concludes with a prediction that many prop firms may not be sustainable in the long term, due to increased regulatory scrutiny and market dynamics.

Q & A

What is the main topic of the video?

The main topic of the video is the discussion of pros and cons of trading with proprietary trading firms, also known as prop firms.

Why does the speaker believe that the cons of prop firms outweigh the pros?

The speaker believes the cons outweigh the pros because prop firms often come with strict trading rules that add extra pressure on traders, especially beginners, and may not be conducive to learning proper trading strategies and risk management.

What does the speaker think about the use of bots to pass phase one and phase two of prop firm challenges?

The speaker is against using bots to pass phase one and phase two, as it is a form of cheating and bypasses the learning process that these stages are designed for.

What is the speaker's opinion on the live stage of prop firm accounts?

The speaker believes that the live stage of prop firm accounts is still akin to a demo account and not real money, and that many traders fail at this stage due to not understanding the rules and risks involved.

Why does the speaker suggest that prop firms might be misleading?

The speaker suggests prop firms are misleading because they often promise large sums of trading capital without fully disclosing the risks and strict rules, leading many traders to lose money.

What is the speaker's advice for new traders regarding prop firms?

The speaker advises new traders to focus on learning the craft of trading with small capital and not to rush into prop firms or funded accounts without understanding the market and trading strategies.

What is the speaker's view on the marketing of prop firms, especially on social media?

The speaker views the marketing of prop firms on social media as misleading and potentially harmful to new traders, as it often promotes the idea of quick success without emphasizing the importance of learning and consistent trading strategies.

Why does the speaker think that many prop firms may not be legitimate?

The speaker thinks many prop firms may not be legitimate because they can change rules without regulation and have been known to not pay out to traders, leaving them with no recourse.

What does the speaker suggest as an alternative to using prop firms for new traders?

The speaker suggests that new traders should start with a small account, learn to trade consistently, and only then consider using a funded account to grow their live trading capital.

What is the speaker's prediction about the future of prop firms?

The speaker predicts that many prop firms might disappear or face regulatory crackdowns in the future, making them less reliable for traders.