Trading stocks without risking your own money is the best way to approach the risky market. Traders can do this using demo accounts and virtual money. However, in this case, no risk means no income. A better way to trade stocks without risking your own money is using stock trading prop firms. These are firms that give traders funding in return for their skills.
Therefore, you only need the ability to trade profitably and some money to buy an account or funding program. This article will take you through the process of starting to trade stock without risking your own capital.
JOIN A STOCK TRADING PROP FIRM
The first step is to join a stock trading prop firm. When picking a prop firm to work with, it is essential to look at several things that will affect your trading and potential income. These include the prop firm’s reputation, fees, trading rules, available funding, and the profit split.
Here, we will go through these factors with the Trade The Pool stock prop firm to see how you can identify them and choose what suits your trading style.
REPUTATION
The first and most important thing to consider when picking a stock trading prop firm is reputation. A good firm should have a good reputation and good reviews from traders who have already experienced their services.
Trade The Pool reviews
Trade The Pool has a section on its website that shows satisfied traders’ reviews. Moreover, the firm has a Trustpilot score of 4.4, which is good. Moreover, there are 340 reviews. This tells you that many people have already traded with the prop firm and can give the rest an idea of what to expect. On the other hand, you should avoid stock prop firms with a low trust score or very few reviews.
FEES
Fees
Knowing how much a funding program costs is essential because some might be too expensive for a beginner. Therefore, after looking at the firm’s reputation, find the fees for all the funding programs available. Here, you can pick what works for you.
Trade The Pool offers the cheapest funding program at $97. This program gives traders a buying power of $20,000. Meanwhile, the most expensive one goes for $475 and gives day traders a buying power of $160,000. The more expensive a funding program, the more capital you get.
TRADING RULES AND OBJECTIVES
The next major thing to consider is the trading rules. Some prop firms might have rules that do not suit your trading style. Therefore, you must look for all the trading rules and ensure you can work with them. For instance, if you are a swing trader, ensure you can hold positions overnight and over the weekend.
The best option is to work with a stock prop firm that does not limit any trader. For instance, with Trade The Pool, traders can trade or short penny stocks and use any trading strategy for day trading or swing trading. Moreover, you can trade pre or after-market hours, and there is no PDT rule.
Meanwhile, trading objectives will affect your risk management and how much you can make. Therefore, a prop firm with tight maximum loss levels might not suit an aggressive trader.
PROFIT SPLIT
Finally, you must consider the profit split, as it will determine how much money you make as a funded trader. You should find a prop firm that gives you a bigger share of the profit split. Moreover, some allow you to grow your profit share based on long-term performance.
Join FTMO and get funding with a profit split of up to 90%. Join TradeThePool today and get funding with a profit split of up to 80%.
CHOOSE A FUNDING PROGRAM
After Picking a stock prop firm, in this case, Trade The Pool, choose a funding program to start trading without risking your own money. Trade The Pool offers traders three types of funding programs. Each has a different price and gives you a certain buying power. To choose a funding program, consider how much money you must spend and how much capital you want to trade.
Trade The Pool has three funding programs from which you can choose.
Mini and Super Buying Power
- Mini Buying Power. At 97$, you get a buying power of $20,000
- Super Buying Power. At $300, you get a buying power of $80,000.
Extra Buying Power
- Extra Buying Power. At $475, you get a buying power of $160,000.
Additionally, you can choose between day trading accounts and swing trading accounts. However, swing traders get a higher fee and a smaller buying power.
PASS THE EVALUATION STAGE
After picking a funding program, you must pass the evaluation to become a funded trader. Here, you get a chance to prove your trading skills. Each funding program has a profit target, maximum loss, daily loss, and duration. Additionally, each has a minimum number of positions you need before completing the evaluation.
If you meet the trading objectives in the given time, you move to the next funding stage. However, you must buy a new funding program if you fail to achieve the targets.
GET FUNDED AND SCALE YOUR ACCOUNT
Funded traders
After passing an evaluation, you can start trading stocks without risking your own money. As a funded trader, you will get access to the firm’s technology and software, which will boost your trading performance. This includes superior trading platforms compared to those offered by traditional brokers. Moreover, funded traders can access technical and fundamental analysis tools to complement their trading.
Working with a stock prop firm will also ensure you manage risk properly. The set trading rules will determine your position sizes and stop loss placement. This ensures that you never blow the account. However, you risk losing the account if you cross the set limits.
Therefore, trading stocks without risking any of your money is possible. The best way to do this is through stock trading prop firms. If you have the skills, what are you waiting for? Get the funding to propel your career to the next level.
Join FTMO or TradeThePool today and experience all the benefits of working with a stock prop firm.
