If I Lose Everything Trading, Here's How I'd Restart From $0

Summary

In this video, the trader outlines a comprehensive plan for starting over in day trading with minimal capital. He emphasizes using prop firms to gain leverage and reduce personal risk, recommending the Apex Trader funding program for beginners. The strategy focuses on mastering one setup and trading consistently, using imbalances in the market for entries. The trader shares insights into managing risk, scaling up with multiple accounts, and using prop firm payouts to fund further growth. The ultimate goal is to make consistent profits, gradually increasing trading capacity over time.

Takeaways

• 😀 Start from scratch with a prop firm account for less risk and higher leverage, making it easier to scale up without risking personal funds.
• 😀 Passing the evaluation is the first step to earning from a prop firm. Once you hit the required profit threshold, you can request payouts.
• 😀 Focus on mastering one strategy to stay consistent. The speaker prefers a trend-pullback approach with a focus on imbalances in the market.
• 😀 Begin with a small prop firm account (like $50,000) and grow it to at least $53,000 to start withdrawing payouts. Scaling up requires discipline and a clear plan.
• 😀 Using prop firm payouts to fund additional accounts is a smart way to scale without using your own capital. Multiple accounts increase your profit potential.
• 😀 Risk management is crucial. Ensure you have enough to cover your monthly expenses (e.g., $5K) before scaling to multiple accounts.
• 😀 Stick to a daily trading plan. The speaker shares this plan in their Discord community, which helps provide structure and consistency in your trading routine.
• 😀 Leverage the power of multiple accounts (up to 20) to maximize profit. By trading across multiple accounts, you can generate significant monthly payouts.
• 😀 Consistency and patience are key. Don't rush to scale or try to make millions quickly. Aim for steady profits over time to build a sustainable trading career.
• 😀 Use prop firms to develop strong trading habits and risk management skills before trading with personal funds. This helps prevent large losses and encourages discipline.

Q & A

Why is it recommended to start with a prop firm account when restarting trading from zero?

Starting with a prop firm account allows traders to access higher leverage with minimal initial capital, reducing the personal financial risk involved. It also helps to develop better risk management skills by trading within predefined rules and evaluations.

What is the primary advantage of using prop firm accounts over trading with a personal account?

The primary advantage is that prop firms allow traders to leverage more capital, making higher profits with less of their own money at risk. Additionally, they provide structured environments with rules that can help traders avoid emotional mistakes and teach them good trading habits.

How does one pass the valuation process with a prop firm?

To pass the valuation process, traders need to meet specific profit targets while adhering to risk limits. For example, with Apex Trader Funding, you need to make $33,000 before losing $2,500. If successful, you receive a performance account where you can earn payouts.

What trading strategy does the speaker recommend for beginners?

The speaker recommends a trend pullback strategy. They focus on trading with the trend and entering on light pullbacks, aiming for imbalances in the market where buyers or sellers have the upper hand.

How important is it to create a daily trading plan, according to the speaker?

Creating a daily trading plan is crucial for consistency and discipline. It helps the trader know exactly what to look for and when to trade, reducing impulsive decisions and aligning with a clear strategy each day.

What role does risk management play in trading with prop firms?

Risk management is essential when trading with prop firms. Prop firms have strict risk limits, and traders need to stay within those to avoid losing their accounts. Proper risk management ensures that traders can make steady profits while minimizing large losses.

Why is it recommended to scale up trading accounts gradually rather than aiming for rapid growth?

Gradually scaling up trading accounts is recommended to ensure long-term sustainability. The goal should be to cover monthly expenses first, such as a $5,000/month target, and then build from there. A slow, steady approach helps manage risks and avoid over-leveraging, which could lead to large losses.

What tools does the speaker use to analyze the market and make trading decisions?

The speaker uses tools like the VWAP (Volume Weighted Average Price) to track price levels, as well as imbalance indicators to determine when buyers or sellers have control of the market. The speaker also uses a specific quantitative tool to assess the probability of price movements.

How do you manage multiple accounts in prop firm trading, and what is the potential for scaling?

Once the initial accounts are profitable, you can use the payouts to buy more accounts, up to a maximum of 20. This allows you to scale your trading business by diversifying across multiple accounts, potentially increasing your monthly income by making consistent profits across them.

What is the ideal outcome for a trader when using prop firm accounts?

The ideal outcome is to make enough consistent profit to cover living expenses (e.g., $5,000/month) while scaling the number of accounts over time. This allows for financial independence without risking personal savings, while also teaching solid trading and risk management principles.