How to Stop Losing Your Funded Accounts

[music] Hello everyone, and welcome back. It's

Tech Re here, and I'll be your friend here who's on your tutor. You're welcome

to yet another video, and in this video, we'll be talking about prop firm risk management. I believe by now everybody

management. I believe by now everybody who is watching this video already know what prop firms are. If you do not know what prop firms are, I think I made a dedicated video on what prop firms are

on my page, but if you're very familiar with the word prop firms, you're in the right place, right? I have been a prop firm trader with Funded Next specifically, and I've

made over 100K in the past year, and I can tell anyone for a fact who is starting their forest journey for the first time that prop firm trading is a leverage you can use to scale faster,

right? So, in this video, I'm going to

right? So, in this video, I'm going to be addressing two major concerns that every prop firm trader has, right? So,

the title of this video is going to be how to stop losing your funded accounts, because prop firm accounts are funded accounts. How to stop losing your funded

accounts. How to stop losing your funded account, right? There is no better

account, right? There is no better person to discuss this topic with than Tech Re. So, I'm going to say wrap Bring

Tech Re. So, I'm going to say wrap Bring your pen, paper, because I'm currently on my iPad with a pencil as well. Bring

your pens, papers, and actually take this down. The secrets I'm going to be

this down. The secrets I'm going to be telling you in this video has helped me keep not just keep, but sustain my prop firm trading career, right? So, without

further ado, let's get right into it.

So, the two major concerning things that prop firm traders struggle with is two things majorly, especially in my community, is poor risk management.

Poor risk management.

Sorry about my bad handwriting. Then the

second is what? Bridging the margin margin utilization breach.

Right? Margin utilization breach. So,

I'm going to be taking them one by one.

So, I'm going to I'm going to talking about forest management and how you can risk manage effectively on your funded account to keep bringing for you profits over and over and over. I have I have

successfully made money and kept a live account running and still keeping still keep making money for me over the past 1 year and the account is still alive today. So, there's like I said, there's

today. So, there's like I said, there's no supervising to teach you how you can actually start making money from a proper account and sustain your proper account so much that it keeps making

money for you. Right? So, this simple risk management technique is going to go a long way for anybody struggling with a proper account trading right now. So, um

let us get started. So, the first things first, I'd like to talk about um this is not this is not going to be a strategy class, right? This is not a strategy class. So, this is basically

strategy class. So, this is basically pure risk class. So, you're going to be seeing some calculations, right? So,

we're going to be working with um 100k account. Let's say a 200k account

100k account. Let's say a 200k account funded next account, right? I'm going to be working with a 200k funded next account. Let's say it's a say

account. Let's say it's a say is a stellar step two accounts, right?

200k funded next account. Now, every

proper account has what you call daily drawdown and um total drawdown or overall drawdown. So,

on a funded next model very popular. So,

the funded next model offers you 5% daily drawdown. That equates to $10,000

daily drawdown. That equates to $10,000 on a on a 200k account and then we have like a 10% maximum drawdown. That equals to 20k um

20k on a fund on a 200k account, right? So,

this is the daily drawdown.

We call it daily DD and this is the overall DD.

Overall drawdown, right? So, this simply means that in a single day you're not allowed to lose more than 10k.

Right? This means that in a single day you're not allowed to lose more than 10k. And then this second one means that

10k. And then this second one means that even if you're you do not lose more than 10k in a day, let's say you're losing 2k 2k

right? 2k

right? 2k This one is simply saying that in total you should not lose more than what? 20k.

So if you [snorts] are getting the mathematics already right, you can see that we are working with 20k as a total amount we are not expected to lose from the account. So, we can say a 200k

the account. So, we can say a 200k account is basically 200k account because you're allowed to manage 20k in drawdown. This is an amount you're not

drawdown. This is an amount you're not meant to what? Lose. Once you lose this amount, your prop firm journey ends there and you have to buy another another account and start again. So, how

do we effectively manage this particular amount to keep making profits for us over and over and over and over, right?

So, I like to go through this with like two ways because like each every trader has like their their strengths and their weaknesses.

There are some traders that are very good and there are some traders that are average and there are some traders who are still struggling with their strategy. Regardless of where you are,

strategy. Regardless of where you are, you're going to be able to fine tune this risk pattern and be able to get yourself the best risk you can use for your account. So, let's say for example

your account. So, let's say for example um We're going to be using whose name is popular here?

Let's say Ade, I'm going to be using or let's say John.

John just recently bought a prop firm account, a 200k funded next account. So, John has what?

A total DD of what? 20k to work with.

Now, John is literally an average trader. Let's call John an average

trader. Let's call John an average trader.

Right? John is an average trader. So,

let's say John If John takes 20 trades, right? John We're going to be working

right? John We're going to be working with like I'm trading samples. I'm going

to do 20 trades and 10 trades. Let's

determine John's win rates. So, let's

say John has like a 40% win rate, which is quite low, and it's also still profitable in the long run depending on your RR, which is your your multiplication factor, right? Your

risk reward is your multiplication factor. I'm going to explain that,

factor. I'm going to explain that, right? So, just relax. So, let's say

right? So, just relax. So, let's say John has like a 40% win rate. On a 40% win rate, it means that if he takes 10 trades, John can win four out of 10,

right? Fair enough. And if he takes 20

right? Fair enough. And if he takes 20 trades, John can win eight out of 10 out of 20, rather. So, this is fair enough for us to work with, right? This is fair enough for us to work with. Now, there

is what we call the multiplication factor.

Right?

The multiplication factor is your risk reward.

Now, let's say John trades a minimum Let's say John trades a minimum of three RR.

Me personally, I trade a minimum of five RR, four RR, five RR, thereabout. But,

let's say John trades a minimum of three RR right?

Three RR. So, this is his multiplication factor. It means that whatever John's

factor. It means that whatever John's win rate is, we're going to multiply it by three. So, if John is winning

by three. So, if John is winning because each loss Each losing trade is minus one RR. I hope you know that. And

each winning trade is plus three RR.

This is why we're calling the RR the multiplication factor. So, if John has a

multiplication factor. So, if John has a 40% win rate, and he's winning four trades out of 10,

it means that John is winning plus 12 R out of minus 6 R.

Because remember 10 minus 4 is what? 6.

So, he's losing six trades only, right?

He's losing what? Six trades only.

Minus 6 R. In total, John is profitable by 6 R.

Right? Hope you're getting that. John is

profitable by 6 R. We're going to do this calculation for even the 20 trades sample because many persons like to actually use 20 trades. Some persons

like to use 10 trades. But, the 10 trades is the fastest and I'm going to tell you how. Now we've actually gotten this out of the way. Let's now go to the calculation part of it, right? So, pay

pay close attention. Now, remember that John actually bought a 200k account and we actually have what? 20k to work with, right? We actually have 20k to work

right? We actually have 20k to work with, remember. Now, John needs to take

with, remember. Now, John needs to take 10 trades in total. What we're going to do is we're going to divide this 20 by

um 10. So, 20 divided by 10

um 10. So, 20 divided by 10 would equal to what? 2,000. This becomes

John's risk per trade. 2,000. And 2,000

2,000 of 200k is what? 1%, right?

is what? 1%, right?

It's 1%, right? Somebody help me check that. Uh

that. Uh 2,000 of 200k. Yes, I think it's 1%.

Yes. 2,000 of 200k is 1%. So, we can say this is a 1% risk. So, it means that John is going to be risking 1% on every trade he takes. Now, let's do the

calculation. Now, we should also not

calculation. Now, we should also not forget that Prop Firm also has um challenge targets, right? Now, I'm

talking about um live account trading, but we have challenge targets and we're going to talk about the mathematics for that as well. Challenge targets are the targets the profit target the Prop Firm

gives you to reach or to uh yeah, to reach before you're able to merit a live account right?

This should not be a a new thing to so many so many of you. So, when you buy a proper account, you're given a a a profit target to reach phase one and phase two. You're given two profit

phase two. You're given two profit targets. You're going to reach the first

targets. You're going to reach the first one. You're given a If it's two

one. You're given a If it's two accounts, you reach the second one before you're funded. Depending on the account type you buy because some accounts have three challenges, some accounts have just two, some accounts just have one, depending. All right, but

let's say um John has passed his challenge. Or let's

say John has not passed his challenge.

Let's say John is still trading challenge. So, John needs 8% on a funded

challenge. So, John needs 8% on a funded next account, which is $16,000 to pass his phase one.

Now, remember that John can take four trades and win.

Uh John can take four trades and win out of what? 10 and lose six.

of what? 10 and lose six.

Right? And lose six. Now, John's job John's job is to not lose that six in a single day, right? Because this is where

some traders get it wrong. John's job is to not lose that six in a single day.

There should be what you call your daily threshold. And I always advise my

threshold. And I always advise my students that your daily threshold should be at least 0.5% away from your daily drawdown. In fact, it should even

daily drawdown. In fact, it should even if you're if you're if you're so much of a random trader, you like like to press buttons, you have You don't have to lose

10K per day. So, let's say John now.

John would reach this particular losing 10K per day if he loses five trades. Ask

me why? Because if John loses five trades, remember that John is risking $2,000 per trade. $2,000 * 5 is literally $10,000. So, if John loses

literally $10,000. So, if John loses five trades in a day, he has lost the account. So, John's job is to not lose

account. So, John's job is to not lose five trades per day. So, if John is able to just lose only three trades, he's still afloat. He's still going to be

still afloat. He's still going to be able to like move forward.

But so, those factors actually come in, right? But at the end of the day, let's

right? But at the end of the day, let's just say John can win four out of out of 10 trades. Now, we're going to

10 trades. Now, we're going to capitalize on this four. and we're going to do our mathematics from there. Now,

remember our multiplication factor is what? Um three R minimum, right? So,

what? Um three R minimum, right? So,

let's say John takes the first trade.

Let's say John has lost the six trades.

So, in minus six um trades, minus six R is what? Minus $12,000, which is 2K

is what? Minus $12,000, which is 2K risk. This is how much he has lost. Now,

risk. This is how much he has lost. Now,

let's see how much he's winning. So,

remember he he would win four trades, right? Four R times his multiplication

right? Four R times his multiplication factor of three, which is 12. 12 times

what?

$2,000 risk, which is what? $24,000.

So, $24,000 minus $12,000 will give you a net profit of what? $12,000.

Now, with $12,000, John is basically up 12K on his challenge account.

Right? John is basically up 12K on his challenge account. Because remember we

challenge account. Because remember we subtracted the loss from the from the profit. John is basically off 12 off 12K

profit. John is basically off 12 off 12K on his challenge account. Now,

12K is already like shy of 2K. John just

needs to like just make extra 2K, which is like one R. He needs to just take a trade out just from one R and he has passed his challenge. So, you can see how easy that is.

So, this is just for the first example, right? Risking 1% per trade. Depending

right? Risking 1% per trade. Depending

on the type of trader he has. So, you

can even see a trader with a 40% win rate. Because when I see traders gag

rate. Because when I see traders gag about like uh uh uh 80% win rates, 90% win rate, it doesn't make any sense. Because even with a 40%

win rate and a good multiplication factor, you're good to go.

You're good to go. You're far profitable than lots of these folks actually claiming very high percentage win rates.

I don't know if you're getting me. Think

about it. With a good multiplication factor of at least three, Anything below three, um I would not advise it. But at least three and above,

you're good to go. Even with a 30% win rate, if I run this simulation, you can run it yourself. With a 30% win rate, if I run this simulation, you're still coming out profitable.

The problem now comes in when you do not actually have a profitable strategy.

Right? There are some persons that can take 10 trades and lose all 10.

You know you know that. Some persons can take 10 trades and lose all 10. There

are people like that.

So, we should not forget that. Some

persons can take 10 trades and lose all 10.

So, that is also a factor. So, now that is out of the way. Let's now do for 20 trade samples. It is quite easy. It's

trade samples. It is quite easy. It's

quite easy. Now,

some persons like to take their time because they do not know they do not know how much you know, this particular one is Remember we it is 10 trade samples,

right? 10 trade samples. Now, these are

right? 10 trade samples. Now, these are the people that want to get it done fast. They don't want to be wasting time

fast. They don't want to be wasting time on on anything. They want to get their

on anything. They want to get their making money done fast. And this is the maximum that I can I can advise anybody to risk on a prop account, 1% risk. I'm

going to get to that when we start to talk about margin utilization breached because many traders lose their accounts, especially many Funded Next traders get breached.

And you know, they start to accuse the prop firm of like wanting to terminate their success early and all of that stuff. I don't know why they don't

stuff. I don't know why they don't explain it fully. And I want to show you how to actually calculate your margin on Funded Next native website. Funded Next

dashboard, rather. So,

like I said, 1% risk, which is the 10 trade sample, is for the persons who want to actually get done with the whole thing faster.

Right? Now, let's talk about the persons who just want to be a little bit conservative. They don't want to rush.

conservative. They don't want to rush.

We're not rushing anywhere.

It's no rush. Let us take it slowly and get there, right? Now, remember I'm still working with like a 40% win rate.

And a 40% win rate is winning eight trades out of like um 20. So, remember now we're working with

20. So, remember now we're working with what? 20 trade samples.

what? 20 trade samples.

20 trades samples.

So, our drawdown is what? $20,000

divided by 20.

This comes out to $1,000 dollar per risk, which is equal to 0.5% of 200K.

So, you're risking 0.5% of 200K.

So, remember now he's actually what?

Losing 12 trades out of 20, right?

Because um on a 40% win rate, the person is winning what? Eight and then um four trades losing. So, let's say we're

trades losing. So, let's say we're losing 12 trades out of 20.

So, remember this comes out to be minus 12 trades, which is multiplication factor of minus one R, which is equal to what? Minus 12 R

what? Minus 12 R times $1,000 risk, which is what? Minus

$12,000.

Minus $12,000.

And then, he's winning eight trades with a higher profits multiplication factor, plus three R.

And he's gaining what? 24 R

times 1,000, which is equal to what?

24 $24,000.

Now, if you minus this from this, it's going to give you what? $12,000.

Now, can you see that this person is moving slowly, but surely he's going to get there, right? He's moving um um slowly, but surely he's going to get there. Out of 20 trades, he's losing 12

there. Out of 20 trades, he's losing 12 and winning eight.

With a multiplication factor of 3R and he's risking 0.5% per trade.

Now, remember that Funded Next charges what? Funded Next asks you to what? Make

what? Funded Next asks you to what? Make

8% for your phase one.

They ask you to make 8% for your phase one, which is what?

$16,000, right? So,

if you minus this from this, you can see that all John needs to make is what?

$4,000 and he has passed his challenge.

This particular risk concept works.

Where it becomes a little bit difficult is when you decide to not stick to this particular rule. I've taught this to my

particular rule. I've taught this to my students. I've taught this to friends

students. I've taught this to friends and they've been able to just utilize this and they've been able to keep their prop accounts running for them over and over and over. Now, it's a different case because each trader needs to find

out how good of a trader he is to be able to know what is my multiplication factor, what is my win rate, which of these? for the more conservative

these? for the more conservative approach, which is this particular 0.5% risk, or should I go for the more aggressive approach where somebody like me, I go for the more aggressive approach because in a series of 10

trades, I can win more than four. So, I

go for the more aggressive approach, right? I do not want to be risking 0.5%

right? I do not want to be risking 0.5% when I actually know how good I am, right? So, I I divide my my risk by 10

right? So, I I divide my my risk by 10 and then I just take my trades. And it

has worked for me for over a year. I've

had students who would do just with 20 trades and risking 0.5% and they are making cool results, beautiful results.

So, it's all about knowing the type of trader you are, respecting your strategy, and also knowing that your prop account, it is not an account you should use to actually play around,

right? You can play around with your

right? You can play around with your live funding. You can basically fund the

live funding. You can basically fund the broker and you can play around with it.

But your prop account commands that you actually are serious with your trading.

So, poor risking is something that many traders just buy accounts and boom, they just want to enter lot sizes. There is a way to actually approach these things.

And luckily, FundedNext has made it way, way, way easier for any prop trader under them.

FundedNext has made it way easier for any trader under them. So, I've

addressed poor risk. You can actually add this into your strategy. Go home,

take it. Glad many of you are actually writing down. Practice it. Um you could

writing down. Practice it. Um you could even you could it could go either way.

You could even do you could even do 40 20% win rate. See what works for you.

See what works for you. See what

actually helps you. Somebody like me, I have a very, very high multiplication factor cuz I don't take trades that are below 4R. I have a very high

below 4R. I have a very high multiplication factor. So, it's going to

multiplication factor. So, it's going to even be better when you do the mathematics. So, do the mathematics

mathematics. So, do the mathematics yourself and find out. It's going to be better. So, it's all about knowing

better. So, it's all about knowing yourself and then applying this particular easy concept to it, right?

So, in the first thing to understand, let's let me run it down for you. First

thing you need to understand is yourself.

Understand the trader.

Be honest with yourself.

How many trades can you win and how many trades can you lose? The next thing is what? Having a fixed

what? Having a fixed multiplication factor.

Even if it's not fixed Even if it's not fixed, have what you call bare minimum.

Even if it's not fixed, have what you call bare minimum. Just like me now, I can say, "Okay, I have a 5R fixed multiplication factor, but my bare minimum My bare minimum is what?

4 RR.

This is my bare minimum. This is

Anything below 4RR, I'm not trading. So,

I can take from 4R to even as high as 10R depending on how good the trade is.

It can be a swing set up and it can even take up to 10 hour, 20 hour depending.

And these are the days where I swing and then I make a whole lot of money from just one particular setup. Because

everybody is looking for how to actually get it on easy. So, have your bare minimum. Right? Have your bare minimum.

minimum. Right? Have your bare minimum.

There should be no bare maximum. Have

your bare minimum. So, having a fixed multiplication factor or a bare minimum and then the third one is what? Applying

what?

The 20 10 20 risk rule.

The fourth one is none other than what?

Discipline.

Simple.

Discipline.

Right. Now, on to the next one that we're going to be talking about.

Margin utilization breach.

A lot of traders complain about this.

Not just Funded Next traders. A lot of traders I've gotten in the past being um community lead.

Many persons come to me and say, "Hey, Techrize I I was sent an email by Funded Next that I've exceeded my margin utilization.

Um how can I resolve this?" And it's quite sad because like these rules are there.

These rules are there. Now, let me address this gambling rule situation properly because a lot of traders are missing the real issue here.

Most people actually think the problem is losing trades. It's not.

Right? The real problem is traders putting themselves in a position where one single bad move completely destroys their accounts.

One single bad move completely destroys their accounts. And this is what this

their accounts. And this is what this rule is targeting. This is what this rule is actually saving you from.

Because some of these rules are there for a reason. Right? They're there for a reason.

After this particular I'm going to basically go on the FundedNext dashboard and literally show you where a margin calculator has been inbuilt and fully baked in for you to avoid losing your

proper account to something like this.

Right? I'm going to show you.

I'm going to show you.

A lot of people a lot of people I've met in the past a lot of people pass challenges calmly with disciplined risk then immediately they get funded they start trading like they are trying to turn an account or their live account

into a lottery ticket. It doesn't change even this particular risk management um we just talked about it doesn't change it's the same for passing a challenge it is also the same for making money on the proper account.

Many persons start to increase their risk once they get funded the margin usage increases everything just becomes oversized and the way the account gets flagged then suddenly the firm becomes the villain.

But from the firm's perspective the trader they actually funded is not the trader that I've seen now or there is now completely two different people.

And honestly it's very valid because prop firms are not just funding your entries they are funding your ability to manage capital responsibly.

Anybody can catch a setup very few people can preserve capital.

Me myself I've been trading with FundedNext for the longest I've not had a single margin I've not had a single margin call or a margin mail like okay I'm being mailed

that oh you exceeded the margin with the at FundedNext they warn first before you're even flagged.

Right? Before you're even flagged.

Now another thing is that traders need to understand that these systems do not just instantly wake up and terminate your account for one tiny mistakes.

There's going to be warnings there's going to be processes and there's going to be notices. But many traders only start to read the rules when they violated the rules already. That's very

backward.

Before opening any trade on a funded account, I'm going to teach you what you should do. You should know your risk,

should do. You should know your risk, you should know your stop loss, and you should know your margin usage.

Also know what happens if that trade fails. Because if one losing trade can

fails. Because if one losing trade can wipe out everything, then the issue is not the market. The issue is your structure.

And most people say, "Oh, but I made profits."

profits." It doesn't matter if you violated the rule. When it comes to trading programs,

rule. When it comes to trading programs, even if you made profits, it doesn't matter if you violated the rule.

So, we are talking a lot. Let's go to the FundedNext dashboard, and I'm going to show you how you can actually what calculate your margin on each trade you enter to see that you're under the safe

the safe um window. Now, the safe window requires that no you should not exceed 70% margin

on across all trades in combined.

Across all trades combined. You should

never exceed 70% across all trades combined.

You should never exceed 70% across all trades combined.

Let's get to the dashboard, and I'll show you how you can actually calculate your margin um utilization and see if you're safe on any trade you enter.

All right. So, I'm back and currently on the FundedNext dashboard. In the

FundedNext dashboard, uh many FundedNext traders do not know that FundedNext has this already inbuilt into their dashboard. You literally just come to

dashboard. You literally just come to the calculator section of your dashboard. You're going to find the

dashboard. You're going to find the profit and loss calculator, lot size calculator, swap calculator, and margin calculator. So, this is how you can

calculator. So, this is how you can check your margin utilization without even having to do any boring mathematics by yourself, right? So, you just come to the margin calculator. Everything has

already been inbuilt. So, you're going to input your account model. I'm going

to input my account model Stellar two-step, right? Stella two step. I'm going to put

right? Stella two step. I'm going to put Stella two step phase um on a live account funded next account is a live account. Account balance is 200k.

account. Account balance is 200k.

Account balance is 200k. What is this thing doing?

Account balance is 200k.

Instrument is um Euro USD.

Instrument is what? Euro USD. Sorry

about that.

Euro USD Perfect.

Calculate the current market rate. Then

I'm going to put my lot size. So let's

say for example, I am currently seeing a Euro USD buy and then that Euro USD buy is 20 pips and I want to risk 2k, right?

I want to risk $2,000 20 pips. Now it's

going to be what? 2,000 divided by 200.

I'm not going to start teaching you how to calculate lot size but I've calculated my lot size in my head. 2,000

divided by 200 would give us what? 20

pip lot size. So 20 lot size and I'm saying 20 pip lot size. So I'm going to go ahead and input 20 lot size and then click on calculate.

So when I click on calculate, you can actually see Thanks for what's happening.

So these are 20 lot size oh actually I think it's even wrong self. 2,000

divided by 200 is going to give you 10 lot size not 20. But even at 20 lot size can see that I have only used 12% of my margin. Now let's check when I actually

margin. Now let's check when I actually what? Use um

what? Use um when I actually use 10 lot size, right?

Calculate.

When I use 10 lot size and I click on calculate, it's also going to see that I have um um used 6% of my margin. So, you

can see it's green.

You can see it's green. It is not red yet. Let's Let's start to like take this

yet. Let's Let's start to like take this up for that. Let's just say 100 lot size.

Right?

Sorry. This is

Let's say 100 lot size.

Calculate.

Let's see what that will bring.

That is still what? 58%. Now, we're

nearing the 70% mark.

Let's see if it turns red. So, let's now crank it up to like let's say 150.

150.

Then I click calculate.

Boom. Can you see that? So, can I see the results? 173, whatever. So, look

the results? 173, whatever. So, look

currently I'm what? 87%. So, this margin calculator is very easy. It is actually on the dashboard. You can actually after taking your trades or even before taking your trades, when you've calculated your lot size, come to this place, input the

lot size, put your account parameters, and it will tell you whether or not you're exceeding the margin requirements, right? It is that easy.

requirements, right? It is that easy.

Funded Engineer has made it easy for everyone to be able to know their margin utilization without even having to do any further mathematics, right? Without

having to do any further mathematics.

So, um I think that's going to be all for this dashboard. Let us move on to something

dashboard. Let us move on to something else.

All right. So, let me walk you through what happens and the warning systems when you actually exceed this margin requirement because like every single um rule, there are penalties. Now, let's

say you're in the challenge phase, right?

Let's say you're in your challenge phase.

Right? And you've had no prior warning.

Let's say you got your first 70% violation warning because it's going to come as an email, right? When they give you this particular warning, it's just a formal warning. This is it. No money is

formal warning. This is it. No money is lost yet because there's no payout in challenge, right? So this but this one

challenge, right? So this but this one in carries forward to every future account. So if you eventually get

account. So if you eventually get funded, do not expect another warning because you've been already issued a warning in the past, right? So your

first 70% violation warning carries on to the funded stage.

Right? Now, let's say you're in your funded stage and you have been given no warning, no warning because you've been

a respectful and cautious trader, right?

Now, FundedNext will issue your first warning when you exceed when you exceed 70% of the margin, they would they would issue your first

formal warning, formal warning.

Now, what's going to happen when this issue this formal warning is issued?

Right, because now you have a FundedNext account, a live account. You're trading,

you're making profits. It's no longer It's no longer challenge target. It is a real profit. Now, what's going to happen

real profit. Now, what's going to happen is that the profits from the violating trades will be deducted before your payout is processed.

You will still get paid, though, but not for the gambling trades. So those trades that we had gambled and those trades that it made you the profits from those trades that made you exceed the margin requirements,

you will not be paid that, but you're going to still get paid all your other valid profits, right? Now, but let's say

profits, right? Now, but let's say you're funded you're funded from this guy, this guy who has been issued a a prior warning from the what's um

from the challenge phase. So, let's say warning already given.

Warning already given, right?

Now, once that happens, your accounts will be what? Immediately terminated.

Your accounts will be immediately terminated. I'm going to drop a flash

terminated. I'm going to drop a flash card so that you can actually see two flash cards so you can actually um see the procedure and everything that happens. On this flash card, I'm going

happens. On this flash card, I'm going to get it. I'm going to arrange one in like a table format. I'm also going to show you one that is straight up from the FAQ. So, it's not like as if I'm

the FAQ. So, it's not like as if I'm formulating whatever. It's from the FAQ

formulating whatever. It's from the FAQ I actually got the flash card. So, I'm

going to flash the card. I'll tell my designer to put it up on the screen so you can actually see and then you just be more careful. The reason why I'm actually making this video is because there are so many persons who have

failed and lose their proper accounts to these two things, poor risk management and poor margin margin knowledge. They don't even know

margin knowledge. They don't even know what the margin They don't even know what a margin is. So, please after this video, I'm not expecting that anybody who has watched this video will lose his account for any of these two things,

poor risk management or poor margin utilization. If you're going to lose your account, you'll probably lose your account because you're not ready. I don't want to hear anybody say,

ready. I don't want to hear anybody say, "Oh, I lost my account because I was risking poorly." Don't do that.

risking poorly." Don't do that.

Make my efforts and energy in this video pay off.

Right? So, you're going to get immediately terminated. Your account's

immediately terminated. Your account's going to be immediately terminated. And

profits profits will be deducted.

Profits from the violated trades will be deducted.

Profits deducted and then only 50% of your remaining eligible payouts will be paid.

Only 50% of the remaining payouts the remaining valid trade payouts that you have actually been able to make will be paid.

Right?

Will be paid. Hope that is clear.

Hope that is clear.

Funded trading is not just about making money.

Right? It's about making money within the right framework. You've agreed to trade on that.

This is where many traders actually get it wrong.

If you want to trade the way you like.

It is simple.

Find a broker and trade on your own.

In fact, I have two accounts. One is my problem account, another is a broker account brokerage account. I trade the way I feel on my accounts. I can risk my entire margin on my account. Nobody

gives a [ __ ] Nobody gives a [ __ ] But on my prop firm account, there are rules that I must strictly follow.

There are rules that I must strictly follow.

Right?

There are rules that I must strictly follow.

So, realistically, what should every trader do? It's simple.

trader do? It's simple.

Keep your risk boring.

Right?

Keep risk boring.

Keep risk boring.

1% maximum risk per trade.

Prop firm traders only.

1% maximum risk per trade. Right?

Controlled margin utilization. I've

taught you how to do that.

Controlled margin utilization.

No revenge trading.

No revenge trading.

No oversized positions.

No oversized positions because if you're confident.

[snorts] And finally, discipline.

Discipline is the greatest form of self-love.

Discipline is the greatest what? Form of

self-love.

Topic for another day.

Right?

Because the trader who survives the long term are rarely the loudest traders.

They are the ones whose account can survive bad days without collapsing.

That is the real flex of being a profitable trader.

And with that said, I've come to the end of this video. I hope you did enjoy it cuz it's actually been a very long ass video.

But I hope it's been helpful for whoever this video was made for.

And I hope you see you find clarity moving forward.

Um hopefully I see you in the next video and we get to talk about other interesting topics.

Take care and have a profitable trading week ahead.