Do you know why most traders fail? It is not caused by flaws in their strategy or a lack of desire to succeed.
The biggest problem retail traders face is undercapitalization.
Once you decide that you want to pursue a career in trading full-time, you will immediately face a tough financial decision, that is why you should consider joining FTMO Forex prop trading firm.
Why you should trade for a prop firm rather than with your own capital?
Most traders think they can start trading full-time with $1,000 or $2,000. The truth is, they are NEVER going to make it.
So, let’s assume you start with $1000 and in one trading month you will take 22 trades, with a Reward/Risk Ratio (RRR) of 2 and your win percentage is 55. Also, you risk 1% of your equity on a single setup.
Even though your performance is very admirable with those statistics mentioned above, there is still a statistical chance that you will end up 5.36% negative with $970 in your account. The best-case scenario would be a 35% gain with $1,350 as an ending balance.
If we are going to take an average result here, let’s say you make approximately 10% profit every single month. The table below shows the consistent scaling in this “best possible” scenario.
As you can see from the above results, in 12 months you would end up with a $2,853 profit.
For some people, they need $2,853 in a month to cover basic needs like rent, food, insurance, debt etc.
So, even though the above example takes into account over a 100% gain (which is realistically very hard to achieve), we don’t have to tell you that you will most probably not be a full-time trader with only $2,853 per year.
Let’s now take a look at the same equity simulation we used before, but this time with $50,000.
As you can see from this simulation, an average gain of 10% would give you $5,000 in a month. That is something worth considering, right?
If you are a skilled and experienced trader and the only thing you are missing is the trading capital, FTMO is here for you!
Our main goal is to help traders from all around the globe and that’s why we are offering capital from our proprietary fund for those traders who are able to complete our evaluation process.
Since 2015, FTMO is one of the leaders in the industry of providing initial balance to traders. We helped hundreds of traders to reach their financial freedom and independence.