So you want to be a funded trader? (I.)

I heard about this funded trader thing 1-2 years before. Somehow I was not interested until I started participating in a Discord group and the guys in it were going for it. So I got into it as well and here are some of my conclusions.

Let us assume that those providing such opportunities are genuine businesses willing to pay out what the trader makes. I signed up for 25k challenge account without reading much of what it means. Soon I got the hang of the approach and realized that a 25k account with a max 10% loss is practically a 2.5k account with high leverage. The high leverage comes from the theoretical 25k account (low or moderate leverage) and the fact the one can use it on a small account of 2.5k. Once I realized it, I quickly signed up for a 50k challenge. This is practically a 5k account with high leverage. I placed my first trade on the 31st of August, 2023. Here we are on 17 September and I am at 50% of the phase 1 profit target. The 10% profit target on the 50k equity actually means that one has to double the account of 5k. This is the summary of my trades and results.

Now, the point is that projecting the results into the future, I will likely double my account by the end of the month. What does it mean? It means the same thing as doubling a 5k high leverage account. One can have a high leverage 5k account on his or her own with around the same risk considering whether one gets paid in the end or not, so a 50k funded account is really not a big deal.

To me, the big deal comes from the possibilities, considering that one can go even for a 400k challenge for the price of around 2k. That is somewhat considerable as one can make a nice living on a 40k account, especially that the initial risk is only 2k.

One could ask a question though that is worth the consideration. If there is a payout monthly, then it means the account does not grow. I need to read about the withdrawal rules for sure and see how it affects account growth. However, if an account is not funded and touched and doubled every month, then out of a 5k account one could end up with 1.4 million after a year of trading and without profit sharing. So while being a funded trader is a very advantageous position for one to build up capital, I am still not sure how profitable it is to participate in such activities in the long run. More investigation is needed. For now, I will continue with the challenge and let you know how it all goes once the challenge is completed.