Most prop firm traders believe that once they pass a prop firm’s challenge, they instantly become part of the firm. But the real process of joining the prop firm is somewhat lengthy and complex. In this article, you will discover the next steps after passing the challenge phase and the best practices for sustaining the funded stage.
Account Verification and KYC
Once traders pass a challenge, the next step is to complete account verification and ‘know your customer’ requirements. To complete this process, you need to submit:
- A government-issued ID, such as a driver’s licence
- Proof of address
- Bank details
Completing KYC and account verification on time, with accurate details, helps traders achieve a quick transition to the funded stage and receive payouts without delay.
Understanding Profit Splits and New Rules
Once funded, traders trade with profit splits and new rules. These are sometimes different from the evaluation phase. Most prop firms offer a 70/30 or 90/10 profit split. The trader keeps 70% or 90% of the profits, while the firm keeps the remaining 30% or 10%.
Similarly, traders are sometimes required to follow new rules like the following:
- Daily and max drawdown limits
- Trading restrictions like news trading
- Consistency requirements
- Scaling plans
To survive this phase, traders must trade within these new rules and demonstrate discipline and consistency.
Psychological Shift
When traders are in the evaluation phase, their main focus is on meeting targets. But once they transition to the funded stage, they must meet profit targets while preserving capital. In this phase, some traders hit psychological extremes. Either they become too cautious or get overconfident.
As a result, they lose grip over their emotional control, which is their biggest asset for sustainable trading. The most experienced traders of the industry treat trading like a business, which they have to build every day. They show up with solid execution and risk management to sustain and scale their accounts.
Best Practices to Stay Funded
Some of the best industry professionals swear by these practices to stay funded. These include:
- Following the prop firm’s rules, such as trading restrictions and daily and overall drawdown limits.
- Trading within required position sizes and avoiding revenge or impulsive trading.
- Keeping a trading journal to track lessons, losses, and improvements.
- Showing up regularly with discipline and patience.
- Keeping their account withdrawals to a decent number to protect and secure their profits.
Once traders follow these, they improve their performance and achieve maximum growth in their trading journey.
Conclusion
In trading, just clearing a challenge is not enough to be a part of a prop firm. Traders must complete account verification and KYC, follow all rules and risk guidelines, and trade with tact to avoid unnecessary losses.
The top industry professionals diligently follow these practices to successfully grow and scale up their accounts.
If you are looking to find the best prop firms that offer a smooth transition from challenge clearance to funding, visit propvator.com to read honest reviews and find discount offers.