A New Hope

Three Part Series. Special Episode 1

In the last couple of weeks, many of you have been asking me about why I use Apex Trader Funding rather than trading my own money. The simplest answer I can give you is also the most honest. And that is, that when I mess up and when I get things wrong, ultimately, I have reduced the impact of any risk to me financially by trading through Apex’s money and not my own. With each new attempt for a prop trader, there comes a new hope. As you all know, I am still within my first five years of being a Futures trader and I strongly believe that if you are too, then you too should never be trading with your own money as to lose your own money, is to lose all hope.

Before we begin, the regular caveat is this: I am not on Apex’s payroll and only ever promote things that I use myself. I have a long list of companies who approach me weekly to get me to pump their stuff. I don’t do it, you will only ever see me recommending things that I have benefitted from myself. With that out the way, let’s begin.

Day trading is high risk and there is so much to learn. Until you’re ready and until you’re consistent, you need to go into each round against the market with your sparing protection gear on. So for me, my Apex accounts are my gum shield and my head guard for any day that the market decides it’s going to give me a serious beating.

My next series of educational posts will be aimed at helping you understand prop account drawdown, how to manage your risk when executing and the all important aspects around position sizing. But today, I want to focus on the bread and butter and address some frequently asked questions that I find myself repeating on a weekly basis. So let’s get to it:

Q: What is a prop account?

Simple! A prop account, or proprietary trading account, is a type of trading account that is funded by a prop trading firm. This means that the prop firm provides the trader with the capital to trade, and the trader only keeps the profits that they make.

Q: Why should we use a prop account instead of our own money?

There are so many answers I can give you for this one. First, it allows you to trade with more capital than you would be able to afford on your own. This can give you more opportunities to make money, and it can also help you to reduce your risk.

Second, using a prop account means that you don't have to worry about losing your own money. If you make a losing trade, you won't have to worry about putting your financial security at risk.

Thirdly, whilst you’re learning to trade, you should never risk your hard earned cash.

Q: What are the risks of using a prop account?

Let’s be honest, there are a few risks associated with using a prop account. First, you are still responsible for the losses that you make. If you make too many losing trades, you could lose your funding from the prop firm. But before this, traders must pass an evaluation account in order to become funded. To do this, they must consistently manage their risk and demonstrate profitability. So the only real risk you are exposed to through Apex is having to pay $20 - $40 each time you fail an evaluation on your journey towards becoming consistent. Currently they have a 50% sale on the Apex website if you use code SAVE50.

Q: Is Apex a good prop trading firm?

Apex is a well-established prop trading firm that has been in business for over 10 years. They have a good reputation for paying out successful traders, and they offer a variety of trading accounts to choose from. In the last month alone they have paid out over a million dollars to their funded traders. Their drawdown rules and evaluation requirements also go hand in hand in helping you become consistent.

Q: What are the requirements to get a prop account from Apex?

The requirements to get a prop account from Apex vary depending on the account type. However, all traders must pass a rigorous trading evaluation. My two favourite accounts are the $50k and $100k accounts as these allow me to have a favourable position size to manage my risk.

Q: How much money can I make with a prop account?

The amount of money you can make with a prop account depends on your trading skills and the amount of capital you are trading with. With Apex, you receive 100% of your first $25,000 of your profits. After that, 90% of what you earn is yours to keep.

Q: What are the fees associated with a prop account?

Apex regularly offer discounts on their monthly fees ranging from 50% off all the way to 90% off. This means an Apex account can cost you as little as $20 to $50 a month to trade Futures. It’s a no-brainer for me. Currently, there’s a 50% discount on all new accounts and resets. Check it out on the Apex website and use code SAVE50.

Q: What are the benefits of trading with Apex Trader Funding?

Apex Trader Funding offers a number of benefits to its traders, including:

You can trade your Apex account through a variety of platforms that meet your needs. Be that through TradingView for beginners, Ninja Trader for intermediary traders or Sierra Charts for aspiring expert level analysts. This allows you to feel at home using some of the most popular platforms out there to trade your Futures account.

Q: What are the drawbacks of trading with Apex Trader Funding?

Ultimately guys, the only real drawback to trading with Apex is that you are still responsible for the losses that you make. However, this is true of any type of trading account.

I hope this introductory episode to prop trading has been helpful in convincing you of the benefits of using a prop account like Apex. If you are a new day trader, I highly recommend considering this option. It can be a great way to get started in trading and to increase your chances of success.

Ultimately, the bottom line for me is that I refuse to risk my capital until I have milked my prop accounts to a point where it makes more sense to move over to my own cash accounts and reduce my tax liability. Until then, I have no problem in staying inside the prop game. I hope the above goes some way in explaining why. In the next episode we will look at account types, position sizing and managing risk.

Much love,

PW.