Alright guys, here it comes…..the no holds barred, how tough it is to get to be a funded trader at TopStep Trader and why it IS the way it is. Here’s the fact of TopStep Trader: These guys will fund you as an individual day trader IF you can pass “muster” if you will. I’ve discussed in several posts that TopStep Trader will fund ANYONE that can pass the TopStep Trader Combine and live Trader Prep. TopStep is an outstanding way for would-be traders to get funded, especially if they don’t have the capital to start their own day trading business. TopStep offers a great opportunity, but I have to be brutally honest, it’s not easy to just get up to $150K in funding, of which, you can earn a HUGE 80% share of the profits. Let’s be honest here my friends, we can all get lucky and “catch lightening in a bottle” and have a small winning streak. Although this is fine and dandy, it doesn’t necessarily make for a successful, consistent day trader in the day trading markets.
The key to success in day trading is not so much what your winning percentage is, but rather the risk management. We all assume in day trading that the bigger the win percentage the better; this thought is dead wrong! It’s not how much you win, but rather how much you lose. Yes, to pass the TopStep Trader Combine and become a funded trader, you need to hit the profit targets, but more importantly you CANNOT hit the daily loss limit or the maximum drawdown limit. You can manage this by practicing good risk/money management and NOT risking too much (as a total percentage) of your initial account size. Passing a TopStep Trader Combine is so far beyond “picking winning entries” it’s not even funny. So many traders focus only on the entry and NOT the risk management and what MOST would-be day traders don’t realize is that the FAILURE to recognize the risk aspect is what actually causes them to fail MISERABLY!
The GOOD is easy…..It’s getting to be a funded trader. The bad, the ugly, and uglier is the fact that it will take a ton of work for you, as a trader, to face the facts that there are MANY challenges to becoming a live, funded, TopStep Trader. Let me lay it all out for you so you can make a sound decision regarding the direction you want to take regarding your trading career. The first decision you need to make is “Can I or can I NOT fund my own day trading business”? This one is huge and if the answer is “no”, read on. If you have minimal funds and you feel you can/are willing to learn to trade, perhaps TopStep Trader is the way to go. Let’s face it, even if you’re learning to day trade, TopStep Trader is a far less risky proposition than learning to trade with YOUR live trading account.
OK, so you decide to get started, you want the $150K funded trading account…..easy…..right? Sorry, but it is not. You’ll need to make a big commitment if you want that $150K account. You’ll need to commit to the TopStep Trading rules in that you won’t exceed the daily loss limits and overall loss limits. You’ll also need to hit your profit target as well. I get it, you question the program, but I have to be honest here folks: TopStep Trader is prepared to fund you with up to $150K if you pass a Combine AND pass live trader prep; if you think there’s people lining up to fund day traders with that kind of funding you are crazy! My point here is that there are strict rules involved in becoming a live funded trader …..seriously guys, we need to think of the investors that provide the capital to fund traders in the first place. Would YOU put up even $10K of YOUR capital for an unproven/questionable trader? I think not!
Alright guys, let’s say you pass the Combine, congratulations….that’s great…..but there are other steps in the process to becoming a funded trader. Once you pass the TopStep Trader Combine you’ll need to pass live trader prep. Yes, you passed, but again, in the protection of the folks that fund you, they have to be sure that you as a day trader haven’t just hit a sudden win streak or caught that “lightning in a bottle” that I mentioned earlier. Let’s face it, there needs to be some trading consistency; isn’t consistency what day trading success is really all about anyway? The Combine is tough, but live trader prep is even tougher, even though the Live Prep requirements may seem to be less regarding profit targets, you may need to complete this step in getting funded with less leverage/number of contracts.
Let’s assume that you pass Live Trader Prep, again, congratulations as many traders may not get to this point. Now you’re here, a live, funded trader with TopStep Trader…….now you need to stay here. That’s right, stay here. What do you need to do to stay here? You made it through all the combine and live prep qualifications, but to stay funded you need to be profitable and consistent; let’s face it my friends to keep ANY job (including….for lack of better words…a job as a funded day trader) we need to perform according to what is expected. You’ll need to continue to adhere to the TopStep Trader rules and loss limits.
I’ve written all this to make one critical point: Getting through the Combine, Live Trader Prep, and even being funded is NOT easy. It’s not easy for a reason; NOBODY is going to offer up to $150K for funding if they are an unproven investment! Let’s step into reality here, no holds barred, no B.S., no sugar coating here, we need to prove ourselves with ANYTHING before ANYONE will invest serious money in anything we are going to do. Put yourself in the investor’s shoes; would you throw your hard earned money at an untested, unproven idea? I bet you wouldn’t.
I know it sounds difficult, and well, it is; anything that’s worth doing always offers a challenge, right? That being said, I know this is a bit of a dismal post, but there is hope! I myself went through the gauntlet of being funded at TopStep Trader. And I did it back in 2012. If I can do it, you could do it too! I am dedicating myself and the Oil Trading Group to helping you, the trader, to passing your TopStep Trader Combine, getting through Live Trader Prep, and becoming and REMAINING a live, funded trader and profitable day trader for TopStep Trader.
See you in the room,
JasonClick Here for Free Trial