When I first discovered trading in 2019, I was drawn to the stock market. But once I learned about the $6 trillion traded daily in the forex market, I was hooked. Like many beginners, I jumped in with my own money, only to blow my first account within two weeks. Then a second one. Frustrated and broke, I was forced to stop. But instead of quitting, I started digging deeper.
That’s when I came across prop firms, and it was a complete game-changer. These firms offered me access to serious capital for a small challenge fee. All I had to do was prove I had the skill. But looking back, there are a few hard-earned lessons I wish someone had told me before I started my prop trading journey.
Here are 5 things I wish I knew:
1. Trading Isn’t Easy
Before I started, I genuinely thought trading would be a shortcut to quick wealth. I imagined making big profits daily. What I didn’t realise was that trading is one of the hardest performance-based careers out there. It's mentally exhausting, emotionally draining, and incredibly humbling.
Once I started losing trades, and eventually accounts, I realised this wasn’t just about charts and indicators. It was about mindset, risk, and consistency. Prop trading forces you to respect the process. If you treat it like a game, you’ll lose like it’s a game.
To avoid treating trading like a game, I started building professional habits. I created a structured daily routine, set specific goals, and followed a strict rule-based system. I began each day by reviewing charts and preparing my levels, and I always journaled every trade, including my emotions and rationale. I treated each trading session as a professional task, no different from clocking into a job. This shift in mindset helped me detach emotionally from trades and maintain discipline over impulsive decisions.
2. Indicators Won’t Save You
I started out relying heavily on indicators, MACD, RSI, Bollinger Bands. I thought stacking indicators would give me an edge. But, it didn’t. In fact, it made things worse by creating conflicting signals and decision paralysis.
I learned that price action, market structure, and patience beat any indicator combo. Indicators can assist, but they can’t replace sound strategy, discipline, and experience.
To overcome this, I transitioned to price action trading, because unlike indicators, price action reflects real-time market psychology and can’t be “wrong.” I now focus on drawing clean support and resistance zones and trend lines to identify key decision levels. For example, I start my day by analysing a forex pair on the daily chart, marking major zones, then drop to the 4H and 1H to refine entries. If price respects a key level and aligns with market structure, I execute the trade with a defined stop-loss and risk percentage. This simplified and focused approach has led to more consistent outcomes and greater clarity in decision-making.
3. Risk Management Isn’t Optional
No one taught me risk management at first. I’d overleverage, revenge trade, and hold on to losers far too long. I’d lose two trades and think the third one had to be a winner, so I’d double down, only to blow the account even faster.
If I could go back, I’d tattoo this rule on my desk: Never risk more than 1-2% per trade. And set a daily loss limit, when you hit it, walk away. Move your stop to break-even when the trade moves in your favour. Protecting capital is everything in this game.
4. Journaling Trades Is More Powerful Than You Think
I used to think, “I’ll remember what happened in each trade.” But I was wrong. Memory is fuzzy, especially when emotions are high. Without journaling, I repeated the same mistakes for months without even realising it.
Now, every trade I take is logged, entry, exit, reason, emotions, outcome. Over time, this built awareness around what works and what doesn’t. You can’t fix what you don’t track.
Example: How I Journal My Trades
I maintain a trade journal in Excel, where each row represents a trade and columns include the date, pair, direction, entry and exit points, stop loss, take profit, risk %, setup details, timeframes used, emotions before the trade, and the result. For example, on 20th May 2025, I shorted EUR/USD at 1.0850 with a stop at 1.0880 and TP at 1.0780. The setup was a clean break and retest of a key support level. The trade hit TP in three hours. I recorded that I stayed calm and followed my plan, something I review regularly to track progress and improve.
5. A Strong Mindset Beats a Fancy Strategy
Prop trading taught me that your mindset is your edge. It’s not about calling every top and bottom. It’s about executing with discipline, even when you feel uncertain. These days, I only trade 2–3 pairs in forex, starting my analysis on the daily chart, zooming into 4H and 1H for entries.
I only take high-probability setups. I don’t chase trades. I sit on my hands and wait, sometimes for hours, until the market aligns with my plan. Following a strict rule set made me consistent, not lucky.
Proven Tips to Improve Your Mindset
One of the most important things that keeps my mindset sharp is having a consistent routine. I start each trading day by reviewing my trading plan and checking my journal entries from the previous day. This reminds me of what worked, what didn’t, and where I need to improve.
Before looking at the charts, I take 5–10 minutes to sit quietly, no screens, no distractions, just to centre myself. This helps me stay calm and focused, especially on volatile days. I also limit my screen time after market hours to avoid burnout and give my mind space to reset.
These small habits, routine, reflection, and mental clarity, have helped me stay grounded and avoid emotional decision-making.
Final Thoughts
Prop trading is powerful, but it demands discipline. You get access to 6 figures, but it comes with big responsibility. Don’t let the appeal of fast profits blind you to the fundamentals: risk management, emotional control, and continuous learning.
If you're starting out, take your time. Journal every trade. Follow a rule-based system. And most importantly, never stop improving.
