2 Secret Tips That Helped Me Become a 7-Figure Prop Trader
When I look back at my journey as a prop trader, there are two game-changing principles that I always come back to, liquidity and timing These aren’t just buzzwords understanding them completely transformed my trading career. From starting with small accounts to reaching the seven-figure mark, these two tips have been the foundation of my success
I’m going to share them with you now, so you can apply them to your trading journey whether you’re just getting started or you’ve been in the game for a while.
Tip #1:Market Liquidity Mastery
There's one thing you need to understand about trading, which is liquidity. In short, that is what makes the market move Without sufficient buy and sell orders to fill, the price won't move Liquidity is like fuel for the market's engine Without it, things just stall
In the world of prop trading, liquidity typically comes from retail traders like us. And it is the larger players, including banks, hedge funds, and institutional traders, who are in constant search for this liquidity to fulfill their orders That is why it is of great importance to know where the liquidity is in the market. If you can identify these areas as well, you can trade with much more confidence.
How to Spot Liquidity in the Market
So, how do you identify liquidity as a prop trader? Here’s what I look for:
● Daily and 4-Hour Highs and Lows: These levels often act like magnets for price When the price reaches these points, it’s like the market pauses to figure out which direction to move next.
● Equal Highs and Lows: If the market’s hitting the same high or low multiple times, it suggests big buy or sell orders are hanging around that level
● Imbalances and Trendlines: If you have serious price gaps or trendline clusters, you've probably found a liquidity zone. These regions tend to have big moves as institutional players pile into such areas.
● Session Highs and Lows: Different trading sessions bring different levels of volatility The London and New York sessions are especially key for USD pairs, so keep an eye on the highs and lows during those times.
The key is to be patient Wait for liquidity to be “taken out” before jumping in If you don’t, you might find yourself getting caught in a trap where the market moves against you and believe me, that’s frustrating.
Tip #2: Perfect Your Timing
Now that you know where liquidity is, the next challenge is timing Liquidity tells you where to enter, but timing tells you when to enter Timing is critical especially in prop trading, where every trade counts
Markets have a rhythm to them, and if you can learn to spot that rhythm, you can make much smarter trades The key is to avoid the “dead zones” when the price tends to move sideways and focus on the times when the market is most active.
How to Time Your Trades
I have discovered, over the years, that some 'slices' of the day just seemed easier for trading. Here's where I have honed my sense of timing:
● Focus on Key Sessions: Major pairs, such as EUR/USD or GBP/USD, have the big London and New York sessions These sessions typically produce at least one solid move per day. If you miss the first one, no worries wait for the second one to unfold. But don’t trade during the quieter times in between
● Avoid Mid-Session Trades: There’s a temptation to jump into trades when the market seems like it’s stalling. But I’ve learned that the market often consolidates during these “in-between” hours, and it’s a risky time to be trading.
● Stick to the “Kill Zones”: These are the first two hours of the London and New York sessions I limit my trading to these hours because this is when market activity is at its peak. It’s the sweet spot, and I’ve found that sticking to it helps increase my win rate
By focusing on high-probability setups during these key hours, you’ll not only increase your chances of success, but you’ll also avoid overtrading something that can wreck your account if you’re not careful.
Combining Liquidity and Timing for Maximum Profit
Here is where things get magical: liquidity with just the right timing Once you master the art of discovering liquidity zones combined with near-flawless timing, you are setting yourself up for a winning trade.
Just recently, I spotted a liquidity zone on the EUR/USD 4-hour chart After waiting for the market to clear out the liquidity at that level and lining it up with the first two hours of the New York session, I jumped in. The market moved exactly as I expected, and I walked away with a solid profit It wasn’t luck it was a calculated entry based on liquidity and timing
Also, keep an eye on news events Big releases like FOMC or CPI reports often create wild price moves. I’ve found that news can act as a catalyst that moves the market in line with previously identified liquidity areas
Popular Prop firms and what they mean for your trading career
Working with a prop firm, you'll want to ensure you're trading with a platform that gives you access to everything you need to be a winner Here, is where firms like Hola Prime, FTMO, Funding Pips, etc stand out starkly
For example, Hola Prime’s fastest withdrawal feature with 95 percent profit sharing and zero fees, Daily Price Transparency Reports creates an atmosphere of transparency where the trader focuses on his/her trading instead of fearing hidden costs and delays Hola Prime’s platform supports multiple trading tools like MT4, MT5, and cTrader, all of which can help you execute trades quickly and efficiently Plus, If you’re serious about growing their account size, Hola Prime’s ability to scale accounts up to $4 million is a huge advantage
Another example is Funding Pips, which is another famous prop firm that offers a profit split ranging from 60-100% depending on the payout timeline They process withdrawals within 1-3 working days, three trading platforms to choose from as per your trading style, and a $2 million scaling potential.
Whether you’re trading with Hola Prime, Funding Pips, or other prop firms like FTMO or Funded Next, the most important thing is finding a platform that aligns with your trading style and gives you the support you need.
Final Thoughts
At the end of the day, trading is about precision Liquidity tells you where to enter, and timing tells you when Master both of these, and you’ll set yourself up for a long, successful trading career
As a prop trader, I’ve learned to be patient and disciplined Don’t rush the process Over time, with liquidity, perfect timing will boost your win rate while steadily building profits
The next time you sit down to trade, remember these two things: identify liquidity and entry timings like a pro The more you do that, the more it will come naturally, and before you know it, you will be a successful prop trader