If you are a beginning trader, a novice trader, or a professional one and you are looking for an opportunity to earn a funded account from a firm then these 6 tips will help you get there.
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The idea of getting funded to trade someone else’s money and trading, keeping most of the profits and absorbing none of the risk is not an easy task but this guide is meant to show you how it can be done and how to get you there.
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Why would you want a Funded Account?
- Your money is not at risk: Funded traders are funded with someone else’s money! The payoff here for you is you don’t have to risk any of your own money (most of the time… we will explain soon).
- You don’t have enough capitol to get started: If you are like me than you probably tried trading your own money, lost it, but still come back for more. You don’t have the money to invest in yourself to trade again because you “paid your tuition to the market”. So having a firm fund an account for you to trade with is an ideal opportunity to dig yourself out of that hole.
- You will be held accountable for your mistakes: Obviously anyone who is giving you their money to trade will be watching you. Analyzing your trades, and holding you accountable. You will become a better trader this way. It beats sitting in front of a computer alone, fending for yourself.
- When you earn enough capital you can branch out: Once you earn a nice piece of the pie, now you have the opportunity to expand your trading. Open your own funded account under a corporate/LLC name and start exponentially increasing your profit potential.
These 5 tips will help you EARN and GROW your Funded Account
Tip #1
- Choose the right company to trade with. TopstepTrader.
Many companies in this type of industry ask of you many things before giving you a funded account. The following is what TopstepTrader does NOT require that others do.
- TopstepTrader does NOT require you to contribute any of your own capital.
- TopstepTrader does NOT go after your if you blow up your account and loose money.
- TopstepTrader does NOT offer your 50/50 profit split like most other companies. They offer 80%!!!
- TopstepTrader does NOT require you to carry any special financial licences to trade with them.
- TopstepTrader does NOT make you trade in an office or other location. You trade from home, on your own time.
Tip #2
- Know your trading plan and be confident in it.
First of all, nobody is going to give you their money to trade if you don’t know what you are doing. Before jumping it to become evaluated for a funded account you need to have a trading plan that works, that you understand and one that you can easily explain to the Funding Department of the firm.
Tip #3
- Stick to your trading plan!
Be consistent! Firms do not want to see you trying new trade setups or new markets on their dollar! Use simulators for that, present it to them first, then move forward. Stick to your original plan. You have responsibilities and trust earned here and you must keep the relationship strong.
Tip #4
- STOP!
It is not a race. You are trying to build an account here. Earn more buying power, and exponentially increase your profits. Be conservative and trade your plan. STOP! Do not trade when you don’t have a setup. Learn when to sit on your hands.
Tip #5
- Have a plan for account withdrawals.
Pay yourself team! But not only that have a plan for it. Getting started, have a base target to get your account P&L to. Lets say it is $1,000, this is your base, this is where the account needs to stay. Once you have made that money continue trading. At the end of the month you are up to $2,000. Your base is $1,000. So you are up $1,000, withdraw half and use it as you wish. Now you start the new month with $1500 in the account, and a new base. Same thing now. End of this new month, you are up to $3500, your base is $1500. Take out only half of the difference. $1,000 in your bank, in your pocket. Now the next new month base is $2,500.
You are growing the account while paying yourself! The more you grow the account, the more buying power you have. Thus an exponential growth in profit potential!
Tip #6
- Manage your risk!
You are not a cowboy or cowgirl! Don’t gamble and “let it ride”. Don’t add to a loosing position. Don’t enter a trade without a plan on when to exit. Set your stop orders and stick to them! Any firm will be looking for this. They heir full time, well paid, Risk Managers to watch you trade. Don’t give them a reason to put you under a microscope.
Wrapping it up!
I hope this post helps you achieve the goals that you set out for. I am here to help you through this process and get you where you want to be. Please reach out to me if you have any questions.
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Hope it helps,
Good luck team!
William