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Prop Trader Edge
June 22, 2024

Hey Prop Traders, here’s are some valuable tips, terms explained and prop firm news for June 22, 2024

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🎓 PROP TRADING LINGO

What is a One Sided Bet? 🚦

A one-sided bet is a high-risk trading strategy where you go all-in on a single trade or multiple trades on the same instrument in the same direction. 🚀 This bold move aims to capitalize on a strong trend, but it can be risky if the market moves against you. Due to the high risk, many prop trading firms ban one-sided bets to protect both the trader and the firm. 🚫📉

Example:

Imagine you have a trading account with $10,000 💵 available margin. You're confident that the EUR/USD currency pair is about to rise 📈, so you decide to use $8,000 of your margin to go long on EUR/USD. 💶💵 You open multiple trades, all betting on the upward movement. 📈

In this scenario, you've placed a one-sided bet. If the EUR/USD pair rises as expected, you stand to make significant profits. 💰🚀 However, if the price falls, your losses could be substantial, potentially wiping out a large portion of your account balance. ⚠️💸 

🔥 TRADING TIPS

📈 TRADER PSYCHOLOGY

Don’t Trade Like Tony Montana

Take any flight from New York to Fort Lauderdale, and a curious thing will happen. If one of the Direct TV channels happens to be playing "Scarface," 🎬 every seat with a man in it will turn to that channel within five minutes until the whole plane is watching the movie. Guys love Tony Montana — the swaggering, psychotic gangster of "Scarface," immortalized by Al Pacino. 💼✈️

Who among us can forget that final scene when Pacino faces a crowd of assassins, screaming, "Say hello to my leeeetle friend!" 🔫 as he fires off his bazooka, taking shot after shot, refusing to go down? 💥

Despite the comic book violence and the psychopathology of the main character, most guys view Tony Montana with no small dollop of romanticism. He represents our universal desire to take on the world on our own terms, no matter the cost. 🌍 But the cost matters, because in the end, Tony Montana gets blown to smithereens, and the movie ends with the shot of "The World is Yours" trophy fallen on the floor. 🏆

In trading, we often do a bizarre imitation of the "say-hello-to-my-leeeetle-friend" scene when we fight the tape. 📉

Did the market stop you out as you tried to short the top? ⛔

No problem. Here is another order to sell. Another stop? You can take the hit. More? Go ahead — you are stronger than the market; you can take it all. 💪💼

In any case, you get the idea. After a while, your trading account starts to look like Tony Montana’s body, and you begin to realize that maybe this was not such a good idea. 🤕

Sun Tzu once said, "He who knows when he can fight and when he cannot, will be victorious." 🥋 This is perhaps some of the greatest trading advice ever. Very often, we trade not to win but to satisfy our ego. 🤔

Taking on the world, or the market, is a romantic idea that we’ve all been taught, but in finance, that is a very expensive way to ruin your life. 💸 As guys, we may all yearn for our inner Tony Montana, but as traders, we should be wise enough to know better. 🧠

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📌 PASS THE PROP TRADING TIP

Prop Trading Tip: Test Drive Your Strategy for Success! 🚗💸

You’d be surprised at the number of traders that ‘test’ a strategy on a funded trading account challenge. Given that you're paying for the challenge, it's crucial to ensure your money isn't wasted and that you have a solid chance to succeed. 💪

For instance, you might watch a YouTube influencer trade a specific strategy and see them making tons of money. While that can be inspiring, you should always paper trade the strategy first. 📝 This allows you to practice executing it properly and verify that you can actually profit from it. Many brokers offer paper or demo trading platforms. 📈

Additionally, backtesting using backtesting software is a valuable option. 🛠️ The process isn't overly time-consuming and provides a wealth of data and insights. If you don't know how to code, just go to the charts, drop a time frame, scroll back, and examine the potential setups. By backtesting, you gain a good understanding of whether a strategy is effective, which can significantly boost your confidence and success rate when you move to a live trading environment. 🚀

Remember, preparation and practice are key to successful trading.

SPONSORED BY AXI SELECT

TRADE PROP WITH REAL FUNDS, LIVE ACCOUNTS

✅ Designed to Help Prop Traders Succeed
✅ First 100% Free Funded Trader Program
✅ No Demo or Virtual Funds. Live Accounts, Real Funds
✅ No Registration or Monthly Fees
✅ Earn Up to 90% of Profits
✅ Trade up to USD $1 Million
✅ You Can Trade the $500 Broker Account Deposit & Withdraw
✅ Unrestrictive Trading Conditions, EAs & News Trading Welcome

 TRADE PROP WITH REAL FUNDS AT AXI SELECT

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