Becoming a successful prop trader requires more than just luck or intuition—it demands continuous learning, dedication, and the right mindset.
Whether you are a beginner or an experienced trader, improving your trading skills is a journey that never ends. In today’s fast-paced financial world, knowledge is everywhere.
From books and online courses to YouTube tutorials, there are unlimited resources available for mastering the intricacies of trading.
However, it is not just about studying—it is about creating a robust support system.
Building a community of like-minded prop traders or having a friend to exchange experiences with can be essential for both emotional and technical growth.
One of the most crucial aspects of trading is defining your style and sticking with it.
Whether you prefer swing trading or scalping, consistency in your approach is key.
Risk management plays a pivotal role in this journey—without it, even the best strategies can lead to disaster.
Beyond that, there is no substitute for spending time on charts and observing price movements.
This is where patterns and indicators become second nature, turning trading into an art form that requires practice and patience.
Finally, starting small, focusing on comfort, and appreciating the value of your profits are essential parts of the process.
Trading is not a race; it is a long-term commitment.
By following these tips, you will be well on your way to becoming a more disciplined and successful prop trader.
10 indispensable advice to become a better prop trader
To become a better prop trader, educate yourself
Learn every day! You have the books, but you also have the internet and Youtube to learn more, unlimited learning.
As you may already know, the best source when it comes to crypto trading is Captain Trading!
Build a community and/or a buddy system
It is essential to surround yourself with a network of like-minded people who want to learn and perform.
As trading is an activity that isolates us, it’s important to be accompanied in order to continue learning, but also to share good and bad experiences, get support, grow as a group, etc.
This will help you a lot: technique, mindset and motivation.
Define your technical analysis style
Stick to this approach. Learn it thoroughly and practice it for months or even years.
It is not a lottery, because there is no such thing as chance, but also because you will not get rich overnight anyway.
The most successful prop traders are in the position they are in because their systems and signals are the fruit of years of observation of the same indicators, patterns and data.
Risk management is life…
… Or rather, your survival, so don’t joke about it – it’s a very serious subject!
It is thanks to risk management that you can crash and sleep.
Make sure you have your risk under control, because there is absolutely no excuse for not doing so.
But it’s clearly a major reason for failure among rookies, because many of them get tilted and can’t bear the idea of failing 3 or 4 times in a row, so you’ve got to try again, but trading isn’t a game!
Spend time on the charts
There is no substitute for spending time observing price movements. It really is an essential point, and should not be neglected.
Load charts, watch reactions, determine levels: spend as much time as possible studying them.
Determine what kind of prop trader you are OR want to be
Be honest with yourself Many people are stuck between being a swing prop trader and a scalper, switching from one to the other.
In reality, this requires very different strengths and mindset. Swing and scalping are not easy to reconcile, so beware of trying too hard – you are more likely to fail.
Start trading with a very small amount of capital
This will do wonders to speed up your training.
The practice of risk management, trade execution, profit and loss management are all very important elements of the process that you unfortunately cannot reproduce with paper trading.
Do not hesitate to join a paying group!
Do your research. Ask current and past members what they think about the importance of being in a group where people come together for a common cause in a diligent, diligent and productive way.
Focus on comfort
As suggested above, the system you set up is supposed to last for years, during which time you will optimize it. Several years is a long time…
So set up a routine that suits you. Make time for rest and relaxation. It is also very important to set up a workspace you like (that has not to say that 10 screens are useful, two are fine!).
Understand the value of money and appreciate your profits
If you can make money in this shark market, that is great! Volume will follow over time. A good prop trader rarely celebrates, but make sure you appreciate your gains and your ability to make more, as you should.
Conclusion
Becoming a successful prop trader requires dedication, continuous learning, and discipline. It is not a journey you can rush through.
By focusing on education, building a strong network, mastering a technical approach, and implementing sound risk management, you are setting the foundation for sustainable growth.
The key is to practice patience and refine your trading strategies over time.
Trading is a long-term game, and the most successful traders are those who continuously adapt, learn from their mistakes, and stay resilient.
If you follow these essential tips, you will be well on your way to becoming a more proficient and confident prop trader.
FAQ
How important is risk management in prop trading?
Risk management is crucial. It protects you from significant losses and helps maintain longevity in the trading space.
Without a solid risk management strategy, even skilled traders can face substantial setbacks.
Should I start with a large amount of capital?
No, it is recommended to start with a small amount of capital. This allows you to learn and refine your trading skills without risking a large portion of your funds.
What is the difference between swing trading and scalping?
Swing trading involves holding positions for days or even weeks, relying on medium to long-term market movements.
Scalping, on the other hand, is about making multiple, quick trades throughout the day to capture small price movements.
How can I build a trading community?
You can build or join a trading community through social media platforms, forums, or paid groups where traders collaborate, share insights, and grow together.
This can provide invaluable support and knowledge.
Is technical analysis enough to succeed?
Technical analysis is important, but it should be paired with a solid understanding of risk management, discipline, and market psychology to truly succeed in prop trading.
Read also: Why prop traders fail their prop firm challenges? 5 common mistakes