What I found out about prop firms: 20 accounts, somebody else’s money

it’s a journey, I’m not trying to teach anybody, it’s just my journey, and I’m just trying to record it.

That’s what this Day Trading Journey is. I’m a beginner. I still drive for the apps to pay the bills, and day trading is what I’m studying to get out of rideshare. This isn’t a course. It’s me writing down what I’m learning as I go.

I started recording it on YouTube too. My channel is Eddie’s Hustle, Day Trading My Way Out of Ridesharing: youtube.com/@eddieshustle. I stopped putting videos on the channel because I just have no time to edit. I can only upload, and maybe I can upload shorts.

This one is about prop firms. I found out how they work and wanted to put the math down. But first, how I learn, because that part is free.

ICT is a free service

I learn from ICT, the Inner Circle Trader, on YouTube: youtube.com/@InnerCircleTrader. I started with ICT because it’s a free service. When money’s tight, free matters.

This is what I do:

1. Watch the ICT videos.
2. Go to the charts on TradingView.
3. Practice.
4. Take pictures.
5. Record them.
6. Take notes.
7. Review your errors.
8. Then go back into the charts and do it again.

Referral link: the TradingView link above is my referral link. If you’re new to TradingView and buy a paid plan through it, I get a $15 TradingView credit (not cash), at no extra cost to you. The free plan works too.

That’s it. Nothing fancy. Just doing it over and over.

I don’t have the luxury of sitting in front of a PC and trading. I don’t make enough money to buy a laptop to use in my car, let alone have a good internet connection to trade in the car, so I use my phone. My phone has been my only access to day trading. Despite everybody saying you should not trade from your phone, for someone like me who works 15 hours every day, seven days a week, I have absolutely no choice. I’m going to be in my car. This is what I do. So I have no choice but to trade from my phone.

Live is not paper

One thing I noticed: trading live is not the same thing as paper trading.

Paper trading is practice with fake money. It helps you learn the charts and the routine. Live is real money. It’s not the same, and I’m not going to act like it is.

That’s part of why prop firms got my attention.

What I found out about prop firms

A prop firm (proprietary trading firm) lets you trade the firm’s money, not your own. Here’s how it works, from what I found out:

• You pay a fee for an account. The kids I’m talking about paid somewhere between $20 and $50 per account.
• You have to pass a test phase first.
• If you pass, you trade the firm’s money, not yours.
• If you make a profit, the firm keeps a cut and you keep the rest.

What got me is these were regular kids, and they were running about 20 accounts.

The math, as an example

This is just an example of how the math works. It’s not a promise, and it’s not a typical result.

Say one account makes about $1,000 profit in a month. Times 20 accounts, that’s about $20,000. The firm keeps about 10%, so around $2,000, and the trader keeps the rest.

Now the cost. At $20 to $50 an account, 20 accounts is about $400 to $1,000 in fees before you even start.

What you need to know

• If you fail the test, you lose the fee. You pay it either way.
• The split is different at every firm. About 10% to the firm is what I heard, but it’s not the same everywhere.
• Account limits are different too. Not every firm lets one person have 20 accounts.
• Check each firm’s own rules before you pay for anything.

I’m not naming any firms and I’m not linking any. I’m not pitching any of these firms. I’m just writing down what I found out.

Where I’m at

Still doing the same thing: watch the videos, go to the charts, practice, take pictures, take notes, review my errors, do it again. Prop firms are something I found out about and wanted to write down. I’ll add more as I go.

Hustle on hustle.

Not financial advice. I’m a beginner recording my own journey, not teaching anybody. Trading is risky, and you can lose money, including any fees you pay a prop firm.