I just thought there might be many people still confused about Prop trading because I see more and more people talking about it. So I want to share my understanding of this topic.

Prop is a system where a company offers traders to use the company's funds to trade instead of using their own money from the start. The full name is Proprietary trading. The simple understanding is that the company gives you money, and you go trade stocks, futures, forex, or whatever. When you make a profit, the company takes a share—sometimes 50/50, sometimes 25-30% depending on your skill.

What’s interesting is that Prop is a business that has grown very rapidly in the past two or three years, especially since COVID. It used to be traditional, requiring going to the office, but now it’s online. You can trade from home easily.

The way it works isn’t as difficult as you might think. If you're interested, you find a suitable Prop trading company, submit an application with your experience information. If you pass, you'll have an interview. If you pass the interview, you'll enter the Challenge phase, which usually takes 30-60 days. During this time, you need to prove that you can consistently make profits.

The advantages of Prop trading are many. First, you don’t have to risk your own money because most of the risk is on the company. You only risk the application fee. If you make a profit, you’ll be rewarded well. Most importantly, you have a large amount of capital to use without needing to raise a lot of your own money.

But there are also disadvantages. The main issue is that you need to have discipline and a very strong mindset because trading is full of emotions. You must control yourself to avoid revenge trading or taking excessive risks. Also, your income isn’t consistent; there’s no regular salary like office workers.

Regarding good strategies, I think the most important thing is risk management. You need to know how much to risk per trade, how to use Stop Loss properly, and stick to a proven strategy. Don’t keep changing it because that will confuse you.

Trading based on support and resistance is a very good method, especially for beginners, because it helps manage risk well. You can also use indicators like RSI to help make decisions. If RSI is above 70, it might be a sign that the asset is overbought.

Finally, Prop trading is a good opportunity for serious traders, but you must understand that it involves risks and requires a lot of effort. If you’re interested and ready to learn seriously, try to understand more because it could truly change your life.