Trade Of The Day TUESDAY2 April 2024
I Prefer a SHORT trade on the USD/CAD paIr and look to trade on a retrace out of the current Resistance area. The USD/CAD is in a bearish channel. Short trades are preferredon the pair at this time as it is in a bearish trend.
Long trades are favored in the index markets and we are buying in the dips. We wait for favorable index buys. High risk shorting opportunities may present themselves on the US500 Index if price breaks through support for those with tolerancefor risk.
Further analysis below the 4Hr chart
Using Prop Funds To Day Trade On a TUESDAY
Day trading is a high-risk, high-reward investment strategy that involves buying and selling stocks within the same day. It can be a great way to make money quickly, but it's also important to be aware of the risks involved.
Prop funds are a type of investment fund that is used by professional traders to day trade. They typically have a high minimum investment requirement, but they also offer a number of benefits, such as access to experienced traders, research and trading tools, and a margin account.
If you're thinking about using prop funds to day trade on a Tuesday, there are a few things you need to keep in mind.
1. The market is typically more volatile on Tuesdays. This is because the market is still digesting the news from the previous week and investors are looking for new opportunities. This can lead to more price swings, which can make it more difficult to make money day trading.
2. There are fewer trading opportunities on Tuesdays.
3. The best prop funds are typically very competitive. This means that you'll need to have a strong track record and a lot of experience in order to get accepted into one of these funds. If you're not accepted into a prop fund, you'll have to trade on your own, which is much more risky.
4. There are a lot of hidden costs associated with prop funds. These costs can include management fees, trading fees, and margin interest. It's important to make sure you understand all of these costs before you start day trading with a prop fund.
5. Day trading is a risky investment strategy. You can lose all of your money if you're not careful. It's important to only trade with money that you can afford to lose.
If you're still considering using prop funds to day trade on a Tuesday, it's important to do your research and make sure you understand the risks involved. If you're not comfortable with the risks, it's best to avoid day trading altogether.
Here are some tips for using prop funds to day trade on a Tuesday:
* Do your research. Make sure you understand the market and the risks involved before you start day trading.
* Choose a reputable prop fund. There are a lot of prop funds out there, so it's important to choose one that is reputable and has a good track record.
* Start with a small account. Don't risk more money than you can afford to lose.
* Use stop-loss orders. This will help you limit your losses if the market turns against you.
* Don't trade emotionally. It's important to stay calm and make decisions based on facts, not emotions.
Day trading can be a profitable investment strategy, but it's important to be aware of the risks involved. If you're considering using prop funds to day trade on a Tuesday, make sure you do your research and understand the risks before you start.
USD/CADSHORT Trade
Entry 1.36
Stop 1.3625
1st 1.3520
Main Target 1.3475
I look to SELL at 1.36
Pivot resistance is at 1.36
Price action has continued to trend strongly higher and has stalled at the previous resistance near 1.36
A trend resistance is also visible in this area.
We expect a reversal in this move
Risk/Reward would be poor to call a sell from current levels
A move through 1.3575 will confirm the bearish momentum
Have a wonderful trading day!
RISKS ASSOCIATED WITH THE STOCK MARKET
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FAQs
The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.
Do prop firms give you real money? ›
Sure, the firm may replicate successful trades of the funded traders on the firm's real account. But, again, those are trades made by the firm itself with its own capital. And in general, prop firms insist that they are not financial institutions and do not provide financial services.
Is proprietary trading worth it? ›
While prop trading is one of the most profitable opportunities, it is affected by asymmetric risk. This means that the profit-sharing ratio may be from 75% to 90%, but you bear 100% of the risk of your trades.
How many hours do prop traders work? ›
The hours in prop trading could be described as “normal-ish, but very intense and stressful.” The average is probably 50 hours per week, though this varies by group, firm, and seniority. The nice thing about trading is that if you produce, your hours don't matter.
What is the failure rate of FTMO? ›
According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.
How to pass prop firm fast? ›
Follow Your Strategy 100%
One of the most crucial aspects of passing a prop firm challenge is having a well-defined trading strategy. A trading strategy is a set of rules that guide your decision-making process in the market. It includes entry and exit criteria, risk management rules, and trade management techniques.
Which is the most trusted prop firm? ›
The most popular prop trading firms and funded programmes
- Axi Select.
- FTMO.
- The Forex Funder.
- E8 Markets.
- True Forex Funds.
- The 5%ers.
- Funded Next.
Foreign Exchange Specialist at FTMO.
- Strict Risk Management Rules and Trading Guidelines: ...
- Profit Sharing: ...
- Profit Targets During the Evaluation Period: ...
- Limited Control Over Capital and Payouts: ...
- Lack of Regulatory Oversight: ...
- High Leverage and Margin Requirements: ...
- Financial Risk and Capital Exposure:
The prop firm will then copy the trades using a combination of automated and discretionary decision-making to execute the trades for real, enabling them to make a profit or loss without any risk to the trader.
Can you make a living with prop firms? ›
Prop trading can be lucrative, with earnings tied to a profit-sharing ratio. Unlike traditional brokers relying on commissions, prop traders' income directly links to generated profits. Ratios vary, often ranging from 75/100 to 90/100, offering flexibility based on experience and strategy.
Profits from trades are generally divided between the firm and the prop trader; however, the risk distribution is asymmetric. This means that in the event of a loss, the trader bears 100% of the losses, while they don't receive 100% of the profits.
How much money do you need to start a prop firm? ›
To summarize, the amount of money you need to open a prop firm can range from $10,000 to $1 million, depending on the type of prop firm, the technology, the registration, the liquidity, and the CRM tool.
How stressful is prop trading? ›
Prop trading can be highly stressful due to the fast-paced nature of markets and the pressure to make split-second decisions. Working in the financial markets as a prop trader comes with a series of demanding hurdles. Such traders face an environment filled with: Intense rivalry.
How much money do day traders with $10,000 accounts make per day on average? ›
With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].
How much does the average prop trader make? ›
The salary of a prop trader can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.
How long does it take to pass a prop firm? ›
However, it can take a long time to achieve this goal – even with the fast paced nature of prop firm trading. It typically takes around 4-5 months to become a prop firm funded trader, if you're a consistently profitable trader. Some traders can achieve this much faster by using increased risk.
How hard are prop firm challenges? ›
Prop firm challenges aren't always easy for traders. Of course, there is a huge number of variables in this and there are some lessons traders should take away to improve their chances of passing and getting funded!
What is the success rate of prop firm evaluation? ›
It is estimated that only 4% of Forex traders succeed with prop firm challenges, and only 1% of traders can generate profits consistently without violating any rules.
Is the FTMO challenge hard? ›
There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns.
