Traders that want to gain access to large amounts of capital but without facing too much risks, and without, well, risking their own savings, are turning towards prop firms as a popular path that can make that happen for them. How does this work, though? Well, in short, you choose a prop firm, you complete evaluation challenges, and then you get access to trading capital, as well as a percentage of the earnings.
In case you don’t know how to become a trader in the first place, this could help: https://www.wikihow.com/Become-a-Trader
Anyway, this can be highly beneficial for a lot of people. Yet, we cannot fail to mention that the fees that come with those evaluation challenges or similar things can undeniably pile up, which is why a lot of people are often wondering if they can do something about those. In other words, they are wondering if there are ways to lower those and ensure that they are getting more profits out of the whole game.
And, well, that is where prop trading bonuses come into play. These can be extremely useful for a lot of traders, and a lot of firms also use them to attract new traders, meaning that it is a kind of win-win situation. Yet, this doesn’t mean that you should just randomly select one prop firm bonus or another, without taking the time to get a better understanding of how those work. In short, what you have to do is be careful and do your best to make the right choice.
Of course, if you haven’t had the chance to do this in the past, it can be completely normal for you to, well, be a bit confused about it all. Most likely, you are worried about making certain mistakes in the process of choosing, and that is certainly a legitimate concern. What we are going to do right now, thus, is talk a bit more about some of those common mistakes that traders tend to make here, so that you can remember them and do your best to avoid them. Without any more ado, thus, let us get started.
1. Checking Nothing But the Size of the Bonus
It is completely normal for people to be interested in the actual size of the bonus, and I understand that you are as well. This, however, doesn’t exactly mean that you should choose one without checking anything else. After all, these usually come with a set of rules and conditions that have to be met after the signup. So, instead of checking only the size of the incentive, take your time to also check the drawdown rules, evaluation timeframes, profit split percentages, and any other conditions and rules that apply.
2. Not Checking Risk Rules
Speaking of rules, you should be aware of the fact that all prop firms enforce their own risk management rules. One of the most common mistakes that people make here, thus, is this. They accept the bonus without taking those into account, and without even checking them for that matter. Since this is not exactly a good idea, you should always do your best to take a look at those, checking how daily loss limits are calculated, how new events and overnight positions are treated, and similar things.
3. Thinking That Bonuses Make Challenges Easier
It is also not uncommon for people to think that getting a bonus means that the challenge will be easier, and that they will, this way, increase their chances of passing. This, however, is most usually not the case. So, when checking out the Bulenox Coupon or similar ones, do your best to assess them for their value and anything else you need to know, instead of simply assuming that they will help you pass the challenges. After all, they haven’t been made for those purposes, but for the purposes of giving you a head start and reducing your costs, while potentially increasing your profits.
4. Choosing Bonuses That Encourage Overtrading
Moving on, you should be aware of the fact that bonuses can psychologically encourage overtrading, especially in new and inexperienced traders. When you feel that you are getting a cheap deal, you could wind up motivated to assume more risk. This is a mistake that you should absolutely not make, so do your best not to be tempted into reckless behavior when you are choosing a bonus.
5. Not Researching the Prop Firm More
Here is one final thing to know. To put things simply, you absolutely have to research the prop firms more instead of just going for one or the other because of the bonus they are offering. Check their reputation and payout history, check the platform quality and execution, and basically check anything else that you need to know, and ultimately go for a prop firm that you would choose even if no bonuses were offered.
