Most day traders find themselves in a position of having a limited amount capital, so as a day trader, what is the best way to increase your capital and therefore increase your profit value? Prop firms have started to notice that day trading is a popular style of trading, with some traders having impressive win rates, so have started to realize it would be beneficial to have some kind of day trader program. Offering day trading funding would give them the opportunity to work with day traders, diversifying their portfolio and profits accordingly.
Day trading has become a popular trading style as newer traders have entered the trading arena making up a large percentage of retail traders, as they have found that day trading fits well with most modern lifestyles, allowing the trader a few hours at the charts each day and more free time to enjoy their profits, but in most business and more so in the forex market money makes money, so having a bigger capital balance is ideal for a day trader who’s trading model is taking trades that run for only a few hours and taking profits daily, being able to have access to a day trader program that is tailored to this style of trading is ideal, and allows traders to trade in a style that is most comfortable to them and not trying to conform to a prop firms ideal, while at the same time allowing the prop firm to not be exposed to overnight volatility that can often be detrimental to trades that are held overnight and for longer periods of time.
Day trading funding allows the trader to make higher frequency trades with bigger lot sizes, maximizing gains over a shorter hold time, allowing the traders who have a profitable day trading model to increase their trading capital at a much faster rate than was previously available to day traders.
Most day trader programs consist of a two-step challenge model, meaning the trader is evaluated over a period of time usually one to two months over two phases reaching specified profit targets in a predetermined number of days, should the trader reach these profit targets in the allotted amount of time the trader is moved to a substantially larger amount of capital, allowing profits that before day trading funding was available, was out of the reach of the average retail day trader.
This program for day traders has changed the prospects for traders, day trading for a prop firm can now be viewed with the prospect of becoming a full time trader, where previously when trading with one’s own funds swing and position trading were the only viable options available to traders, as the ability to raise enough capital to allow full time day trading was not easily accomplished, so swing and position trading alongside a nine to five job was the only option.
This has changed dramatically since the advent of day trader programs, now day traders are afforded the opportunity they well deserve, to make full time day trading a viable option, a simple search on social media quickly reveal traders who are able to have lifestyles that only trading with a large amount of capital would support, before day trading funding was available this kind of lifestyle was reserved for a few elite traders who were lucky enough to have access to a high capital balance.
While this all sounds simple and the risk all falls on the prop firm who is offering a day trader program, as with all things related to trading it is important to do your research and go through all your numbers and possible outcomes, with the fairly short time period allocated to the trader to reach the predefined profit targets, it is important to check the previous performance of your strategy against the day trading funding models available, to make sure passing in the allotted time is likely. The day trading funding programs are challenging to pass, this is because it is in the prop firms best interest to only have the best day traders trading their capital and to limit the amount of risk they are exposed to.
Day trading funding has changed the opportunities available to day traders and scalpers alike, with the large amounts of capital available to those who pass, day trading programs can be challenging and put pressure on traders who take the challenge to perform at their best in order to succeed. But once they pass the challenge the profits available from the capital at their disposal far outweigh the challenges, so do your research, find the day trading program that best suits your trading skills and start living the lifestyle you dream of.
