## How to Join Prop Trader: The Complete Guide for Beginners

**Proprietary trading** or commonly known as **Prop trader** is a working approach that attracts many traders today. Prop trade companies act as funders for talented traders, allowing them to trade in various financial markets and share profits according to agreements. If you are just starting out and unsure whether Prop trading suits you, this article will clarify everything.

## What is Proprietary Trading and How Does It Work?

**Prop trade** allows traders to utilize the capital provided by the company to trade a variety of assets, including stocks, futures, commodities, or forex. The key difference is that instead of trading in a virtual account, the Prop trade company provides a funded account to the trader. Each trader’s capital depends on their skills and experience.

When profits are made, the company charges a fee based on an agreed percentage, typically between 25-50%, depending on each company's policy. There are also additional costs such as application fees, trading software fees, and account management utilities.

## What is Forex Prop Trade?

**Forex Prop trade** is a specific form of Prop trade focused on the currency market. There are two main types:

**Traditional**: Companies hire traders as employees, offering monthly salaries, bonuses, and career advancement opportunities.

**Online**: Traders have greater independence, must pass assessments, and then gain access to capital. This type has gained significant popularity since 2020.

## How to Apply for Prop Trader

If you are interested in Forex Prop trading, follow these steps:

**1. Find and select a company**: Evaluate reputation, platform, and profit-sharing conditions.

**2. Study the requirements**: Check minimum age, required experience, and necessary documents.

**3. Submit an online application**: Provide information about your background and trading experience.

**4. Interview**: The company may interview you about your skills, strategies, and goals.

**5. Enter the evaluation phase**: Usually lasting 30-60 days, during which you must demonstrate your ability to generate profits and follow company rules.

**6. Receive funding**: If you pass the evaluation, you will gain access to a funded trading account.

## Advantages of Being a Prop Trader

**🟢 Independence**: Set your own working hours and make decisions independently.

**🟢 Continuous earning opportunities**: If successful in trading, you can generate ongoing income, although you need to invest to pass the evaluation first.

**🟢 Limited risk**: Most of the risk is borne by the company; your only risk is the application fee.

**🟢 Career growth**: Good Prop trade companies will have advancement plans for traders.

**🟢 Access to large capital**: No need for sufficient personal funds; the company provides capital to trade immediately.

**🟢 Supportive community**: Other traders share experiences, and support teams are ready to assist.

## Disadvantages to Consider

**🔴 High discipline required**: Trading demands focus, discipline, and self-control. Follow your plan even when losing.

**🔴 Trading psychology**: Emotions are a major enemy of success. Revenge trading or aggressive trading can be dangerous.

**🔴 High application costs**: If income is limited, accessing larger accounts may be problematic.

**🔴 Uncertain income**: No fixed salary, life insurance, or other benefits.

## Prop Trader vs Hedge Fund: How Do They Differ?

| Feature | Hedge Fund | Prop Trader |
|--------|--------------|--------------|
| Funding Source | External investors | Company’s own funds |
| Trading Style | Long-term and diverse | Usually short-term |
| Investor Type | Organizations, institutions, wealthy individuals | The company itself |
| Fee Structure | Management fee + profit share | Profit share only |
| Profit Generation | Guaranteed returns | Short-term market volatility |

## Effective Strategies for Prop Traders

### 1. Strict risk control
First and foremost, protect your capital. Limiting loss to 5% per trade helps you survive tough times.

### 2. Don’t let emotions control decisions
Market volatility creates stress. Revealing plans to ignite emotional reactions leads to failure. Stick to your plan even when losing.

### 3. Stick to what works
If your strategy proves to be fair, there’s no need to change everything. Learn and improve, but don’t overreach.

### 4. Trade using Resistance and Support
Identify zones where prices tend to decide. It’s recommended to buy near support and sell near resistance.

### 5. Use the Relative Strength Index (RSI) as a guide
RSI measures overbought and oversold conditions. Values above 70 indicate overbought, below 30 suggest buying opportunities.

## Managing Risk in Prop Trading

**Deeply understand the market**: Comprehensively learn market behavior, tools, and various risks.

**Create and adhere to a plan**: Write clear risk-reward rules. Do not modify them midway.

**Test before risking real money**: Use demo accounts or backtest strategies with historical data. Improve before trading with real funds.

**Risk only what you can afford to lose**: Do not risk money needed for living expenses.

## Summary: Who is Prop Trading Suitable For?

**Prop trading** can be an excellent choice if you have high discipline, understand risk management, and are not afraid of uncertainty. This system offers opportunities to trade with capital based on your proven ability.

Before deciding, research reputable Prop trade companies, understand all conditions, and plan your trading carefully. With good preparation, continuous education, and strict adherence to rules, you can become a successful prop trader.