Do you want to become a funded trader? Before you go ahead and get started with funded trading, it is essential to know about one of the crucial factors – earning. When you know about how much money do funded traders make, it provides a proper idea about whether this profession is ideal for you or not.
Just because you get funded doesn’t necessarily mean you are going to make a lot of money. Getting funded is a challenge of course, but most don’t know that keeping funded and protecting your capital is the biggest challenge of all. You need to conserve your capital first and foremost while mainly using stacked confirmations along with risk management.
Don’t get into this career field just because other people are making a lot of money out of it. Apart from money, there are many other factors you need to take into account before you become a funded trader. One of the crucial factors is a risk. You need to take into account how much time, energy, and money you will be spending before starting to make money with funded trading.
First of all, the good thing about becoming a funded trader is it allows you to trade on the foreign exchange market without risking your own hard-earned capital. Instead of risking your own money, you will be using the service of a company that offers a funded forex account. Now the question is, how much do funded traders make?
Well, the answer to this question is based on so many factors. There is no direct answer to this question. The main thing which impacts the earnings is the funded trading platform you choose. Depending on the platform you choose, it will have its own rules.
Factors like share split, terms, payout, fees, etc., will create a significant impact on your earnings. Depending on the selected trading platform, it will have its own terms for share split and fees.
Becoming A Funded Trader
Becoming a funded trader can be a great way to start your career in trading. The good thing about becoming a funded trader is it does not require you to invest your own hard-earned capital. Instead, you will be trading with the capital of the firm you have signed up with.
It doesn’t matter whether you are a new or experienced trader; by becoming a funded trader, you can improve your knowledge in the field. The first and essential step in becoming a funded trader is learning. No matter how much money you have, if you don’t have enough knowledge and skills, it’s not worth it.
This is the stage in which you need to spend a significant amount of time learning and improving your knowledge. You will be learning different strategies and improving your trading skills. The next crucial step in the process of becoming a funded trader is choosing the right platform. When selecting the platform, take into account factors like payout terms, share split, fees, etc.
After selecting the platform, the next step is passing the certification test. Depending on the platform you choose, it will have different criteria for the certification test. Taking the test helps the trading firm get an idea about your trading skills and knowledge. After the certification test, you need to achieve target goals through the firm’s trading strategy.
Making Money As A Funded Trader
Whether you become a funded trader or a sole trader, the amount of money you can make will vary. When you become a funded trader, you do not have to risk your money. Instead, you will be using the capital of the trading platform you have signed up for. On the flip side, when you become a sole trader, you will be risking your own capital.
Between both approaches, becoming a sole trader involves more risk. This approach is about learning by risking the money. If you are just getting started with forex trading, becoming a sole trader may not be a good idea. By becoming a sole trader, you will learn a lot; however, you will make mistakes, and there will be higher chances of losing more money.
When it comes to making money as a funded trader, one of the main things is share split. There are so many funded trading platforms out there on the market. Each platform will have different rules and criteria. The share split usually ranges between 60% to 80% of the profits for the trader in 100k to 300k accounts.
The fee is another factor that impacts how much money you can make as a funded trader. Based on the fee structure set by the company, it may have monthly fees, initial fees, one-time fees, and/or any other type of fee.
When working as a funded trader, the critical thing to take into account is you need to work on the trading strategies provided by the firm. Even if you think your trading strategy will generate the best results, you always need to work on the strategy provided by the trading platform.
The amount of money you make as a funded trader will rely heavily on your head game that keeps you from making mistakes like over trading or revenge trading. Once you have perfected your methodologies and principles you need to focus on your risk to reward. Did you know if you average a 5:1 risk to reward you can be profitable at winning only 20% of your trades.
You can also still work on perfecting your strategy using demo on the side. One of the strategies I use is closing half my lots at either 1:1 or 2:1 depending on the pair. I do not move my stop loss though I keep it right where it is until the price action makes a higher low or lower high. Everything we do is based on Break Of Structure. So the price has to break structure to hit our stop loss or stop profit. This I am always okay with as I know my analysis was done correctly we don’t control the markets. Once you can remove that emotion that is where the profits start to get much more prominent.
2% a week is a great and achievable goal and maybe shoot for 10% a month. This might not sound like much for people on smaller accounts but once you get to