What Is Proprietary Trading? (also Prop Trading)
It’s every trader’s dream to manage a big account without risking their own money That’s where funded accounts come in. You get access to the firm’s capital, potentially unlocking new earning possibilities However, there’s a catch most people don’t pass these challenges If you’re asking yourself, “Why do so many traders fail at getting funded?” you’re not alone
As someone who’s spent over 10 years in the prop trading world, I’ve seen both experienced and new traders tackle these challenges And let’s be honest, a lot of them stumble Let’s dig into some of the biggest reasons traders struggle and what you can do to flip the odds in your favor.
1 Misunderstanding the Purpose of Funded Accounts
Many traders treat a funded account challenge like a quick ticket to easy money. They jump in with big expectations and make trades as though they have nothing to lose But funded accounts aren’t a magic fix; they’re a high-stakes responsibility When traders approach these challenges with unrealistic expectations, they often end up making impulsive decisions, leading to big losses.
2. Lack of Discipline and Consistency
Discipline is non-negotiable in trading. I’ve seen traders go from zero to hero just by nailing their discipline Funded account challenges are all about proving that you can stay consistent However, many traders struggle to stick to their strategies They might start strong, but one or two bad trades throw them off, and they start making desperate moves to “fix” their losses. Prop firms aren’t looking for traders who get lucky once; they want steady, dependable results
Tip: Start by developing a strategy you can commit to Whether you’re a trend trader, a scalper, or use any other style, be the best version of that trader every day.
3. Overleveraging
Many traders bear losses because they overleverage. Prop firms usually set leverage limits, but even then, the temptation to go big can be hard to resist Overleveraging might seem like the shortcut to big profits, but it’s more often a direct path to busting your account It’s not about the size of each trade it’s about the quality and risk management.
For instance, some firms like Hola Prime offer 100:1 leverage, which provides flexibility, but still requires smart management They encourage traders to be wise with leverage, teaching that bigger trades don’t always mean better trades.
4. Neglecting Risk Management
It sounds like a pretty simple concept, but it forms the backbone of every trader's journey who achieve success I often see too many traders overlook risk management while using funded accounts as if it were about only meeting the profit targets However, firms put more weight on how well they control risk They want to see if you know when to take profits, set stop-losses, and, most importantly, stick to them.
I’ll give you an example from my own trading experience There were days I could have doubled my profits by holding a position a bit longer, but as a funded trader, my priority was protecting my profits not my ego. Firms like Hola Prime appreciate that kind of cautious approach It’s one of the things they reward with scaling options up to $4 million for successful traders and a 200% reimbursement
5. Emotional Trading and Lack of Mental Resilience
Emotions can be an asset in some areas of life, but in trading, they’re often a trader’s worst enemy A funded challenge is a high-pressure test, and it’s easy to let stress cloud your decision-making. Maybe you’ve hit a drawdown, and you start doubting your strategy. Or perhaps you’ve had a few wins and started getting overconfident Both of these emotional responses can lead to mistakes
6. Choosing the Wrong Prop Firm
Not all prop firms are created equal, and this has everything to do with why the trader wins or loses Therefore, some firms may have fees that are quite high in value, strict rules, and very inefficient support, meaning that most of the traders would be struggling with their challenges
And then there are prop trading firms such as Hola Prime, which actively work towards ensuring that traders succeed. For instance, they give benefits like weekend holding on their Prime Account, processing payouts within 1-hour, and even a 200% fee reimbursement, clearly indicating that they are on your side
As a trader, it’s your responsibility to pick a firm that aligns with your trading style and offers realistic, supportive terms Do your homework, read reviews, and understand the rules A firm that is transparent about its terms and encourages sustainable trading practices, like Hola Prime, will make a world of difference.
7. Lack of Patience
Everything in trading is related to patience. Most funded account challenges are structured to test your endurance rather than your skill. So instead of just trying to hit the profit target as fast as possible, it's about meeting the profit target consistently and steadily It is a marathon, not a sprint
Prop firms want to see that you can wait for the right opportunities, make decisions without rushing, and keep emotions in check Just because a firm’s challenge has a target doesn’t mean you should feel pressured to hit it as fast as possible Firms like Hola Prime give you space to prove your abilities without unrealistic deadlines, valuing measured, methodical trading over risky tactics
Why
Prime Is Unique in the World of Prop Trading
Talking about what makes Hola Prime unique as a prop firm, they have succeeded in building up a reputation for supporting the traders and setting them up for long-term success Here's why they are a favorite for both new and experienced traders:
● High-Profit Splits: They offer a profit split up to 95% That is one of the highest in the industry.
● Low Barriers: From as low as $48 for a minimum fee or zero additional charges on some platforms such as cTrader for a seamless cost structure not taking a slice from the pie
● Fast Payouts: The waiting games are over; Hola Prime is taking as little as 1 hour to process their payouts
● Scaling Options: A $4 million scaling potential gives room for growth Thus, it is one of the best options available for those seeking to build their career.
● Support for USA Clients: The company offers a rare opportunity for U.S. traders, where not all prop firms accept U S residents
Final Thoughts: Passing the Challenge and Thriving as a Prop Trader
Two things come to the end of all this: preparation and mind To get through this challenge, you have to treat it as if it were a real job by using discipline, patience, and commitment to growth.
Think of funded accounts not just as a means to make money, but as a stepping stone to become a better trader. Firms like Hola Prime, with their trader-friendly approach, are here to support you in that journey, but the bulk of the work comes from within It’s about showing up every day, refining your strategy, and putting in the work to pass those milestones
So, if you have failed earlier in some funded challenge then do not lose hope. Learn your mistakes and try to identify weak areas in trading Then, build mental strength such that next time you can pass Moreover, you should choose the prop firm that cares for the trader And most importantly, choose a prop firm that’s genuinely invested in your growth as a trader, one that aligns with your goals and sets you up for success In that sense, Hola Prime could just be the partner you need in your trading journey