The Dark Truth About Day Trading Prop Firms

[@sentiasatransformasi]

imo it doesn't matter if they use real capital or not as long as they actually make the payouts n keep their promise on their end

[@amirla84]

ya tell that to MFF people lol

[@inevitable8562]

@@amirla84idc, as long as they pay me

[@davidphones7290]

Yeah but you’ll never get paid because in all likelihood, you are not part of the 0.000001% of traders

[@sentiasatransformasi]

@@davidphones7290 in the end its about either you see a glass half full or half empty

[@queerfusion]

And a lot aren’t paying

[@traderknightzbitcoinuniver8168]

If anyone is a successful trader with an edge and discipline, these numbers don’t matter but for the newbies they have a long road ahead

[@WisdomWealth77]

This video aged well. MFF just proved your points. 🍷

[@gregflorko8402]

You are correct that the traders who are supposedly "funded" are costing the firm money because nobody actually gets funded. However, if the firm can keep 90% of their customers on the sim side while the other 10% are supposedly "funded", the firm still makes more money.

[@lincolnneilsen]

Again, I have a lot of respect for both Paladin and Omar and believe they are legit traders and businessmen. I just thought it was important to spread the conflict of interest in this business model and why that may be a matter of concern for traders. Leave you thoughts on this situation below! 👇UPDATE (Sept 2023): www.cftc.gov/PressRoom/PressReleases/8771-23

[@lowtrend]

im not sure about everythings that are going on. but at the end of the day they can credit trades. so theyll allow the accounts to take out trades against accounts with $0 in them. they do the same thing with margin if they allow someone to trade 30x theyre simulating 30x funds. its essentially going short and the market never touches the market which is how cfds run anyway. say i buy 100 lots the broker puts the trade in. the difference is either payed or billed and the firms pay the bill or collect the profits for the split. the amount in the accounts is usually the high end of margin requirements like tasty trades it costs 10k to take out 1 nq futures contract but with ninja trader it costs 1000. so if someone's advertising a 100k account with 10 contract buying power. its a 100 000k account. but yeah we all know it is not possible to have the amount of funds in the account but realistically the broker has a deal with them to place trades with $0 as a commercial contract. the contract just says they will release the profits or be owed the difference. theyll always be able to pay the difference because majority of people loose the accounts and anyone making profits doesn't cost the firm anything but is making them money because the accounts have "buying power" not capital. they don't say this because everyone would work out that they can start a prop firm with a commercial crediting contract and never loose. when someone starts a live account it says "you can loose more than is in your account" because the trades can still legally be processed. legit prop firms have a setup of. $0 margin with pre-established buying power. the maximum loss of the account is the most the broker will allow the firm to run on a line of credit. yeah some people do sketchy shit but if a prop firms' broker isn't regulated, you're paying to trade illegally and will get clapped atleast once if not multiple times.

[@schoopinprofit]

A prop firm doesn't necessarily lose with profitable traders. Many prop firms WANT profitable traders, they will simply take a cut. The hard part is determining who will be a profitable trader and who to put on the live account instead of the demo.

[@inspirUnix]

Agree, they put a demo live account for normal trader and "maybe" they give real live account for consistent profitable trader so that prop firm make money even from those who consistently make payout

[@aleksander791]

then why dont they allow traders to use options to hedge their own positions? Most proper prop firms and hedge funds use options to balance out the deltas, they want you to do 50/50 coin flips, as they are B-Booking you, and that fine, but call it a CFD not some "Prop-aganda Firm"

[@aleksander791]

lol no, they want you to keep chasing the challenges lol, like just save that money and trade properly using tasty mechanics@@inspirUnix

[@schoopinprofit]

@@aleksander791 I agree with you on the marketing side, it is scummy. Just was giving the perspective from an owner of a prop firm and what they’re looking for. It’s a for-profit business at the end of the day.

[@blackpillbishop5016]

Which legit prop firms do you recommend?

[@user-es1gx7uz3n]

Prop firms make money out of the stats and they know they are going to win, is like a casino, there is a small % of traders who actually make a living out of this.

[@Chinp7788]

I plan to test both the smartfundedtrader and myfundedfx prop firms with a $5,000 challenge to see how things unfold(both no time limit). I acknowledge your perspective that, much like in a casino where gamblers can win money = casino lose money, the casino eventually takes measures to prevent continued betting once a certain amount is won. Businesses of this nature have their own statistical proof of assured profit, but it remains exceptionally difficult. Nevertheless, many individuals are drawn to gambling and are willing to try their luck, even though they are aware of the significant challenges involved.

[@thelifeofpaladin]

Great video subscribed keep up the good content!

[@Attitude-royale]

How ironic that the prop firm blew up. 😂

[@hithummah]

Agree on most except for the part where consistent profitable traders making them lose money. I believe they have another evaluation for those with very good matrix. They just copy and alter the strategy of successful traders into the firm real live account,

[@SilverLake401]

Great video man. If you are going to buy these challenges, I think it’s it’s wise to be consistently profitable so you’re not going broke and making them richer

[@forextrader2464]

Exactly I'm not interested in any prop firms. I think this is gonna end badly

[@inevitable8562]

70k in payouts from propfirms, easy way to build your live account

[@quantumindicesfuturestrade6873]

What would be the point of a demo account? You're either trading with real funds or you're just fpinning your wheels. I would avoid this like the plague.

[@samuelyancy7323]

Thanks for the imformative video man. It's nice to know how this stuff actually works.

[@lubenky_]

Thanks so much for this video. I thought about it because I'm trading prop firms account

[@makeITcount2]

This video aged well post SFT collapse

[@badass6656]

That profit split is it per month?? A trader who is profitable in one period may be unprofitable in another period. For those whose time is unlimited when do they have to accept a loss?

[@banginzaza]

Thie aged perfectly RIP My Fk Your Funds. RIP Fk Your Talent 😂😂😂😂

[@laszlomattern]

Thank you my friend. You just resolved the argument i had with my friend :)

[@blackpillbishop5016]

Great video mate, quick question - which prop firms would you recommend that actually trade live capital and where there is no conflict of interest with the trader?

[@Maitreya888]

I will give you the answer. NONE. Theres no quick rich scheme, your best bet is use your own money. at least you have a 50/50 chance at worse.

[@aspirant4548]

If i make 8 to 10% reterun in my real trading account so i can pass a funded account Is easy or not What your thought

[@Shaun_khumalo]

Can I ask do you have any signal group by any chance

[@darius39351]

At this point I think everyone knows how prop firm works but nobody cares, they just became mega addicted

[@D20034]

This is why I switched to futures prop firms they actually pay out and have never been taken down or have been investigated for fraud or any shady business i honestly love the futures prop space better then the forex prop firm

[@Trendlines_mc]

So if you are consistently profitable can you go for a Prop Firm and which Prop Firm would you recommend...

[@soouhil]

ftmo

[@infini.tesimo]

The answer to this is AI and trading without failure. Found a couple companies doing this so I'm not sure if it's as bad as you say it is.

[@SanjayPatel-rd1kx]

Nonsense

[@sks99912]

I mean if you're consistently profitable, they would just A-book you and keep 10-20% of the profits you make?

[@inevitable8562]

Yes

[@darlingtonbagatiba393]

so is topstep also demo

[@gangafreak7533]

Super cool video i think though aswell traders that a are making consistent payouts may surely have real capital at risk. The prop firm may bet on these good traders, how many payouts until a prop firm takes you off demo is that even a thing?

[@G4meCh4n9er]

i need someone to tell me this there are competitions like in SFT propfirm the first 10 winners get eval challenges 85% be in DD in the first week i feel the problem is in the people they think it's just a game most people are lazy and trading is hard for real

[@ryanyoungpeters5687]

Do not approach funded account unless you make consistent money already

[@markp911]

Learn to actually be a professional trader. The problem is that people are hopping into these things and they aren't professionals at all. That's why the fail rate is so high. Learn to actually trade like a pro. The targets are. And as far as whether or not you're actually trading real money or not it doesn't matter as long as you're paid. One of my trading partners made over 100k and payouts last year. He's a fellow student in this course that I took . Do you think he cares if traits of virtual market? No.

[@fadialkhoury7765]

so do you think if iam a consistent profitable trader,, should i go and take funded account in this situation??

[@themanoncharts8924]

So how do traders make money??

[@krazycoolcat]

Which logical business would absorb a stranger's $3k drawdown loss for a $300 monthly fee? Oh wait, it's just a simulated account 😊

[@alexdjins6710]

As I persone if I have a business and I hire people I wanna hire employees that are profitable because I’m making money as well

[@dper9950]

Yes, feels so much better. Lets blame those wolves in sheep's clothing for our inapt skills. The only thing wrong with this industry is that there is no entry requirement for purchasing a challenge or verification test, well, accept for having the funds to do so. it's a bit like saying, you can get on the highway as long as you have the money to buy a car. Don't worry, you can pass your driving test as you go along. The prop firms, very foolishly believe that we should be responsible for our own trading capabilities and know whether we are qualified enough to take the challenge. I know, i have been in this position for yonkers. Kept taking more and more challenges simply because I had the money to do so and could not face the reality that I may not deserve to pass as yet cause I lacked the skills. Then there is this bizarre call about the capital utilized by prop firms. The presenter of this video announces it like he is delivering some ground breaking news. We all know that funded accounts are not backed by actually allocating the matched amounts into our accounts. Don't we? Is there anyone out there who thinks otherwise, Wow! Most firms even say so in their T&C that funded accounts are copy traded on their own servers. Which means if the trader is successful, so are they and the rewards are distributed through that copy trade. If it is a loss, well they bear that cost up to the agreed amount i.e. Max Loss and that is funded through the fees we pay. Before anyone says so, I don't work for any of these companies or having any interest in them apart from using them as a prop trader to get funded. This is a perfectly legit and I might say normal model. When you get a loan for a car or a house, you don't think the bank actually opens its vaults and hands you over real money, do you? No, they debit your account on the liability side and credit their account on the credit side and whoosh through creative accounting you now own a house but you will have to pay them real money for forty years to turn your liability into a fully paid credited account. it is no use us calling it a scam unless you were being forced to take these challenges. For it to be a scam or illegal it would be down to the Trading Standards Commission, the Securities Exchange, the Fraud Office and the DEA or Crown Prosicution Office to say so. If you can't stand the heat, Get out of the kitchen. If it is impossible for you to be a successful prop trader, just leave it for those who are doing it !

[@lincolnneilsen]

Good points. I never called it a scam but instead said it was actually a great opportunity for traders because of there no time limits and solid owners. Ive also never once payed for a prop firm challenge because I know my skills aren’t there yet, so this wasn’t me justifying my losses. I’ve posted my trading failures multiple times across this channel. I genuinely believe they’re a great opportunity if you know how to trade. Simply pointing out there are levels to this game so others can be a bit more aware

[@naratrades]

Very nice point. Thank you

[@thegreenemerald8670]

What a foolish bunch of buffoonery you have dished out here

[@obsiiye5503]

thank you very much

[@santososuroboyo498]

nice insights, thanks

[@RhythmBoy]

So that's (almost) 3 people out of 1,000 funded traders who actually get a payout, and all of them are here making videos on youtube promoting it

[@Mzingisi-tb5cv]

Very informative ❤

[@jtrades_]

agreed

[@solkahila]

you were right all along

[@Trenchestrading]

Are you saying nun of the prop firms have live accounts?

[@lincolnneilsen]

I can’t say for sure that none do, but it’s highly unlikely they’re just putting anyone who passes a challenge on a live account. If anything, only the top of the top consistent traders get copied at a smaller lot size.

[@666Machine-gi6zp]

Great video

[@nikhilthomas348]

BRO..GREAT CONTENT

[@yolumi6592]

It's called capitalism Sir. It's not propfirm fault traders are incompetent and buy challenges before they consistent. It's opportunity for both trader and firm to be fair

[@rappa8305]

Can you give articles or legit sources on your claims?

[@lincolnneilsen]

www.cftc.gov/PressRoom/PressReleases/8771-23

[@sikanderabbas1]

Are our executions and orders real ? Are they performing in real live market ?

[@futuretrunks1027]

I donr care live or not as long as I someone could pass the challenge

[@lincolnneilsen]

100%

[@nanayawamankwahowusu5681]

Facts 😂

[@ste97itapro82]

Fake i have 200k ftmo and paid me every time

[@Maitreya888]

Thanks we dont need your fake comment

[@reisfx.]

Que vídeo foda . Valeu BR

[@Geneboie]

lol my forex fund was a ponzi scheme

[@TheTraderGuy]

Shame on this man for stating the obvious. lol

[@mosesjackson_tz]

Another guy who cant pass a challenge.....

[@TheGreatVerlin]

Actually, he's saying the truth.

[@queerfusion]

And many that do do the get paid!

[@queerfusion]

And many that do do the get paid!

[@jorgealberto5114]

Shut up bro these prop firms are a blessing and a great opportunity for the good traders stop complaining and start winning. Lossers lose winners win no excuses

[@CH-bp3bj]

Did you even pay attention to the video? 😂

[@samuelyancy7323]

He most certainly did not lmaoooo@@CH-bp3bj

[@TheGreatVerlin]

Actually, he's saying the truth but what matters is as far as you're getting paid, no problem.

[@skylinetrading9498]

lol why you so angry little boi?

[@queerfusion]

Most are scams - or have you been under a rock ?

[@matiyasbehailu]

are u funded or nor

[@lincolnneilsen]

I am not funded

[@Elshaddaifx]

He might has failed challenges many times this guy. Propfirm are for those experienced not begginers

[@ferg5938]

Paladin isn't actually smartest. I mean if someone buys 40 challanges for couple days and lose it all that person cannot be smart. Now he gonna use rest of smartness to take money of other idiots that are buying challange over challange.

[@lincolnneilsen]

Yea I see what you mean. Almost a gamblers mentality that eventually you’ll win. The thing with him though is he actually made it and has kept that consistency up with payouts and more funding. So it looks like it was more than just dumb luck that he actually got funded, proving that these skills can be learned with a degree of consistency.

[@MrWackydoodles]

this comment reeks of jealousy lmao. It's not the prop firms' fault that the dude purchased the challenge even if he didn't have the skills, and it's not his fault that after trying mroe than 30 times he eventually acquired the necessary skills to pass multple challenges and actually earn from them. shut up and trade

[@traderknightzbitcoinuniver8168]

@@lincolnneilsenif he actually made it through trading then why start a prop firm and sell courses ?

[@lincolnneilsen]

@@traderknightzbitcoinuniver8168 Diverse and scalable sources of income. Just as I'm trying to show in this video, there are levels to the trading business world and business in general. He can sell his course without any extra work or risk on his part, same with selling prop firm challenges. There's also potential for an exit in a prop firm business which would likely pay exponentially more than his trading earnings. It's a really smart move on his part.

[@wkr420]

@@traderknightzbitcoinuniver8168 Literally use your brain for half a second. This question is so dumb and all of you deniers ask it. If you rephrase your question, you are essentially asking "why would someone that makes money already want to make more money?" If you have a skill and experience that people are WILLING to pay you to learn about, the only reason you would say no is TIME. If you can package years of experience into clearly articulated lessons and easily digestible visual diagrams, and people ASK you if they can pay you to do so, are you going to say "No, I dont wan't more money." ? Anyone that knows anything about business will know that 2 incomes is better than 1, 3 is better than 2... and so on... You people seem to think that if someone teaches, it automatically means they can't trade. There is absolutely no logic behind that, so if you want to deny the success of others, you should find a better way to do so than making yourself look ignorant.

[@1234TDM]

You just gained a subscriber in me 🫡