The Prop Firm Bible 📘
A Complete Guide That Even Beginners Can Understand – The Definitive Guide to Conquering Prop Firms
- 📚 What You’ll Learn in This Curriculum
- Concept Understanding Phase
- Risk Avoidance Phase
- Practical Optimization Phase
- The Golden Ratio of Money Management | The 2% Rule and Lot Calculation
- Trading Strategies Suited for Prop Firms | Reasons Why Day Trading is Recommended
- Mental Management | What to Do the Day After a Loss
- Coupon Utilization Mastery | Types, Combinations, Optimal Timing
- Free Trial Strategy | Experience Failures for Free
- Withdrawals and Scaling | Growth Strategy from 2 Million to 50 Million
- Taxes and Tax Filings | Proper Handling of Prop Firm Earnings
- Prop Firm Q&A | 50 FAQs for Beginners
- 🚀 First, try it out for free
- Frequently Asked Questions
📚 What You’ll Learn in This Curriculum
- The overall structure and challenge rules of prop firms
- 4 types of drawdown calculation methods and tips to avoid disqualification
- Must-know prohibited actions and consistency rules
- Practical application of the golden “2% Rule” for money management
- Techniques for utilizing coupons and tax planning
Concept Understanding Phase
Understanding “What is this?”
Learn the basic structure of prop firms, challenge rules, and how to use trading platforms – the essential knowledge to get started.
EPISODE
Complete Explanation of Challenge Rules | One-Step and Two-Step Processes
Thoroughly explain the structure of the two-step evaluation, profit targets, and strategies to achieve a 21% pass rate. Understand the challenge as a “job interview”.
EPISODE
Trading Platform Setup | Complete Guide to MT4/MT5
Explain the differences between MT4 and MT5, download and connection methods, and basic operations. Also cover solutions to “unable to connect” troubles.
EPISODE
Drawdown Explained in Detail | Daily, Maximum, Static, and Trailing
Fully illustrate the 4 types of drawdown calculation methods. Explain the pitfalls of trailing and why beginners should choose static drawdown.
EPISODE
Explaining Atypical Challenges | How to Use Instant and Lightning-Fast Pro
Differences and use cases of One-Step Plan, Instant Funding, and Lightning-Fast Pro Plan.
Risk Avoidance Phase
Learning “What not to do”
Learn the must-know knowledge to avoid failures, such as prohibited actions, consistency rules, and how to identify fraudulent companies.
EPISODE
Prohibited Actions and Consistency Rule | 7 Behaviors That Lead to Instant Disqualification
Explain the 7 prohibited actions, such as news trading, weekend holding, and martingale, as well as the true meaning of the consistency rule.
EPISODE
Criteria for Choosing a Company | 5 Checks to Avoid Fraud
5 checkpoints to identify a trustworthy company, such as withdrawal history, years of operation, Japanese support, and transparency of terms.
EPISODE
The Right Plan to Choose | Initial Capital for Beginners
Thought process of selecting based on psychological load and success probability. Failing 3 times with a 2 million plan costs 6.6k, but 1 failure with a 20 million plan is 11k.
Practical Optimization Phase
Practicing “How to Succeed”
Learn practical techniques for success as a prop trader, from money management and trading strategies to mental control, coupon utilization, and tax planning.
EPISODE
The Golden Ratio of Money Management | The 2% Rule and Lot Calculation
Understand the true meaning of the “2% Rule” that allows you to survive 50 consecutive losses. Specific lot calculation methods and proper responses after losses.
EPISODE
Trading Strategies Suited for Prop Firms | Reasons Why Day Trading is Recommended
Why is day trading recommended? Strategies to avoid, recommended currency pairs, and setting daily profit targets.
EPISODE
Mental Management | What to Do the Day After a Loss
Psychological traps traders fall into and how to deal with them. Explain why the thought of “trying to make it back” is the most dangerous.
EPISODE
Coupon Utilization Mastery | Types, Combinations, Optimal Timing
Coupons are not for “saving”, but “insurance against failure costs”. If you assume 3 attempts, a 25% off coupon saves 1 attempt.
EPISODE
Free Trial Strategy | Experience Failures for Free
3-account differentiation strategy. Failing for free is an “investment”, failing while paying is a “loss”.
EPISODE
Withdrawals and Scaling | Growth Strategy from 2 Million to 50 Million
The flow of withdrawal application to arrival, real reasons for withdrawal rejection, and a roadmap for scaling up capital.
EPISODE
Taxes and Tax Filings | Proper Handling of Prop Firm Earnings
Tax classification of prop firm earnings, deductible expenses, and the fact that even evaluation fees can be claimed as expenses.
EPISODE
Prop Firm Q&A | 50 FAQs for Beginners
Answering 50 frequently asked questions. The more “embarrassing” the question, the more others are likely thinking the same.
🚀 First, try it out for free
You can experience prop firms through Fintokei’s free trial.
Frequently Asked Questions
Q1. What is a prop firm? Can beginners get started?
A prop firm is a company that provides traders with its own capital and shares the profits. Even beginners with little self-capital can start trading with large funds if they pass the firm’s challenge (evaluation test). This article explains the prop firm system in a step-by-step manner for beginners to fully understand.
Q2. What is the structure of a prop firm’s challenge (evaluation test)?