Work of a Prop Trader – How to Start?

Prop trading may become a dream job. Those who are successful in it describe this experience as a fantastic journey, where the prize is millions under management, hundreds of thousands of annual income, a flexible schedule, and the most stunning area of professional development.

 

Many are desperate to climb to the top in the financial market. Everybody has their chances, but everything depends on the correct choice of the path toward this top. Some people are lucky to find the correct path accidentally. Others, less lucky, try to feel their way, extending their journey as a prop trader. Sooner or later, everybody understands how the financial market works. But it would be better to memorize the map first and adjust the path to your own tempo and abilities. Then you could receive pure joy from a journey into the prop trading world.

 

 

Contents

 

• First Steps

 

• A Path to the “Base Camp”

 

• Reaching the Top

 

 

First Steps

 

“The journey of a thousand miles begins with a single step”. Laozi

 

The legendary Chinese philosopher wrote these words more than 2,500 years ago. Nothing’s changed since then. Every journey begins with a first step. To become a prop trader, you have to start with a first challenge. Some may not consider it seriously, like a small hangout outside of your home, so you can always return home and pick up whatever is needed. But these first steps pave the path to your success. Any unreclaimed errors will scale eventually. Thus, the first challenge is not just another exam but the foundation of the path to the future journey. It will require you to live your ordinary life while constructing a proper profitable strategy, implementing your strategy during a trial challenge, and passing a trial challenge successfully.

 

You may read how to construct a profitable strategy in the “How to Become a Prop Trader?” article. Regarding a trial challenge, you may find a special “Mini Pepper program” at SpiceProp. This is a two-step challenge to get a simulated funded account for €6,000. It simulates other more expensive programs' terms and conditions but costs only €45. A similar two-step challenge for a simulated funded account of €10,000 costs €99. Mini Pepper has unlimited time to pass the challenge, a unique feature of all SpiceProp challenges.

 

Every step of the challenge requires closing three profitable days in a row (+0.5% to the balance of the account), meeting profit targets (7.5% at the first step and 5.0% at the second step), and not exceeding risk margins (5.5% daily and 11.0% of the balance in total).

 

After a successful trial challenge, you may consider the door into the prop trading world open. Now it is time to scrutinize your first trading experience. Take a rest before embarking on the adventure.

 

 

 

A Path to the “Base Camp”

 

During the First Steps phase, education was the main goal. Now that basic knowledge is acquired, you may advance to a “Base Camp.” This is a “place” where you can afford comfortable living on prop trading earnings and even save some money for new challenges. At this stage, you should have at least €3,000-4,000 to be at the gates of a “Base Camp.” You are the king of the “Base Camp” when you have €10,000 in monthly income from prop trading. When you have a monthly return of 10.0%, you should have above €50,000 on your simulated funded accounts under management. If your monthly return is 5.0%, you should have above €100,000 on your simulated funded accounts under management.

 

This is where you could find a two-step Sweet Pepper Challenge from SpiceProp very useful.

 

• For just €149, you could get a €25,000 simulated funded account.

 

• For just €285, you could get a €50,000 simulated funded account.

 

• For just €459, you could get a €100,000 simulated funded account.

 

 

At first glance, the choice seems obvious. A challenge for a €100,000 simulated funded account is favorable as it should be enough for comfortable living as a prop trader. However, you may find it better to diversify your trading to increase your chances of successful trading. For example, you may take a Sweet Pepper challenge for €50,000, add simultaneously a Chilli Pepper challenge for €25,000 (read more in the article “What Traders Are Comfortable with a Single-Phase Challenge?”). The cost of the challenge is €199. You may add the Jalapeno Immediate Funding Program, which allows you to get a €10,000 simulated funded account instantly (read more in the article “Immediate Funding – How Does it Work?”). This program costs €520, but you will secure your simulated funded account without any hassle.

 

Such a diversified approach will cost you twice as much (€1,004) as the two-step Sweet Pepper Challenge for a €100,000 simulated funded account (€459). But you will increase your chances to reach a “Base Camp” dramatically. Considering the huge advantage of the Jalapeno scaling option, you could advance to the next phase much faster.

 

 

Reaching the Top

 

Unlike conquering Everest, when you approach the top in prop trading, most of the difficult work is behind you. Now you have to expand your portfolio. You may scale up your existing accounts, buy larger accounts in the same programs like Sweet Pepper, Chili Pepper, or Jalapeno, or accelerate via the two-step Black Pepper challenge.

 

Black Pepper has many advantages compared to other programs. Most importantly, it can give you access to a €300,000 simulated funded account for just €1,499. Such a boost could shoot up a prop trader directly to the top league.