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The Prop Trader’s Secret: How to Trade for Real Money
Trading for Profit vs. Trading to Make Money
There’s a critical difference between trading to be profitable and trading to make money. While they may seem like the same thing, they’re not—and as a trader, you must decide which approach you want to take. If your goal is to be a prop trader who actually makes money, here’s 3 ways you shift your mindset and strategy.
1. Make Frequent Withdrawals
Traders focused on making money consistently withdraw profits. I learned this the hard way during my early trading days, seven years ago. Back then, I was obsessed with being "profitable." My focus was on hitting arbitrary profit targets—green months, green quarters, and a green year. While that mindset works for hedge funds, it’s not ideal for prop traders.
Frequent withdrawals create a feedback loop: the more often you secure profits, the more motivated and disciplined you’ll be to continue nailing winning trades. Prop trading comes with inherent uncertainty, so obsessing over 10% profit targets or arbitrary milestones only sets you up for disappointment.
2. Follow the 1-1-1 Rule
Stick to the 1-1-1 rule:
Adhering to this rule will transform your trading. You’ll avoid overtrading, reduce your exposure to losing streaks, and eliminate the emotional tilt that often leads to blowing accounts.
This discipline has kept me consistently profitable over the years. Whether you’re trading GBPUSD, EURUSD, XAUUSD, or US30, pick one instrument and master it. The path to trading success is as much about mastering yourself as it is about mastering the market.
3. Focus on Small Risk-to-Reward Ratios (R:R)
Small R:R trades may not sound exciting, but they’re the backbone of consistent profitability. Catching a 1:10R move might feel like the ultimate trading achievement, but are you here to be "profitable" or to make money? Make up your mind.
Most traders chase high R:R setups, only to give back 80% of their gains after one emotional mistake. Instead, focus on smaller, attainable targets:
After locking in a winning trade, withdraw your profits and repeat the process. Over time, these smaller, consistent gains will make you far richer than grinding for massive R:R setups and risking it all in the process.
The Bottom Line
Prop trading is about discipline, consistency, and the ability to extract real money from the markets—not just hitting arbitrary profit goals. By making frequent withdrawals, following the 1-1-1 rule, and focusing on attainable R:R setups, you can trade with confidence, avoid burnout, and get make real money! Isn't that why we're all here?
Happy Trading
There’s a critical difference between trading to be profitable and trading to make money. While they may seem like the same thing, they’re not—and as a trader, you must decide which approach you want to take. If your goal is to be a prop trader who actually makes money, here’s 3 ways you shift your mindset and strategy.
1. Make Frequent Withdrawals
Traders focused on making money consistently withdraw profits. I learned this the hard way during my early trading days, seven years ago. Back then, I was obsessed with being "profitable." My focus was on hitting arbitrary profit targets—green months, green quarters, and a green year. While that mindset works for hedge funds, it’s not ideal for prop traders.
To succeed in the prop trading space, you need to prioritize frequent withdrawals.
- Hit a strong run and make 2.5%? Withdraw.
- Have a profitable day and the withdrawal window opens tomorrow? Even if you’re only up 1%, withdraw.
Frequent withdrawals create a feedback loop: the more often you secure profits, the more motivated and disciplined you’ll be to continue nailing winning trades. Prop trading comes with inherent uncertainty, so obsessing over 10% profit targets or arbitrary milestones only sets you up for disappointment.
2. Follow the 1-1-1 Rule
Stick to the 1-1-1 rule:
- Take 1 trade per day.
- Risk 1% per trade.
- Focus on 1 financial instrument.
Adhering to this rule will transform your trading. You’ll avoid overtrading, reduce your exposure to losing streaks, and eliminate the emotional tilt that often leads to blowing accounts.
This discipline has kept me consistently profitable over the years. Whether you’re trading GBPUSD, EURUSD, XAUUSD, or US30, pick one instrument and master it. The path to trading success is as much about mastering yourself as it is about mastering the market.
3. Focus on Small Risk-to-Reward Ratios (R:R)
Small R:R trades may not sound exciting, but they’re the backbone of consistent profitability. Catching a 1:10R move might feel like the ultimate trading achievement, but are you here to be "profitable" or to make money? Make up your mind.
Most traders chase high R:R setups, only to give back 80% of their gains after one emotional mistake. Instead, focus on smaller, attainable targets:
- Learn to consistently spot 1:2, 1:3, and occasionally 1:4 R setups.
- On a 200k account, a single 1:3R trade at 1% risk generates $6,000.
After locking in a winning trade, withdraw your profits and repeat the process. Over time, these smaller, consistent gains will make you far richer than grinding for massive R:R setups and risking it all in the process.
The Bottom Line
Prop trading is about discipline, consistency, and the ability to extract real money from the markets—not just hitting arbitrary profit goals. By making frequent withdrawals, following the 1-1-1 rule, and focusing on attainable R:R setups, you can trade with confidence, avoid burnout, and get make real money! Isn't that why we're all here?
Happy Trading
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