Recently, I saw questions from friends who just entered the trading world asking, "What is Prop trade?" and how to prepare for it. So I thought I’d write a share about it.

Let’s start with the basics: proprietary trading (Prop trade) is when a company offers traders the opportunity to use their own skills, with the company providing the capital. When we make a profit, the company takes a share according to the agreement. Sometimes it’s 50/50, other times 25-30%, depending on each company’s skills and conditions.

What’s interesting is that entering Prop trade isn’t free, because you have to pay an application fee and pass a rigorous assessment called a "Challenge," where the company evaluates whether you have enough skills and knowledge to trade profitably.

For Forex Prop trade, there are two types— the traditional one where you work as an actual employee of the company, and the more popular online version where traders can work from anywhere. After applying and passing the assessment, you gain access to the capital directly.

Let’s look at the application process. First, find a suitable Prop trade company, considering its reputation, platform, and profit-sharing terms. Then check the qualifications required, such as age, experience level. Submit an online application with your experience details. If you pass, there will be an interview to discuss your skills and strategies. Finally, if successful, you’ll receive trading capital into your account.

The advantages of proprietary trading are numerous— you have the freedom to set your own schedule, the opportunity to generate continuous profits even after passing the Challenge. Most of the risk is on the company; your only risk is the application fee. It offers good future prospects, and importantly, you don’t need a lot of capital because the company provides it, along with support from the trading community.

However, there are downsides too. You need high discipline, emotional control to avoid revenge trading or over-risking. The assessment fee can be high if your income is limited, and your earnings aren’t as steady as a government salary.

Regarding good Prop trade trading strategies, you should start with strict risk management. Don’t be happy about losses coming back. Stick to what works for you— trade at support and resistance levels, and use indicators like RSI to measure if an asset is overbought or oversold.

When it comes to risk management, continuously learn about the markets, develop tested strategies, and stick to your plan. Test your strategies on demo accounts first. Most importantly, only risk money you can afford to lose without financial hardship.

In summary, proprietary trading offers exciting opportunities but requires hard work, dedication, and professional risk management skills. If you’re ready, do your homework well and choose a reputable company. This could change your trading path.