Top Mistakes Traders Make During Prop Firm Challenges
Top Mistakes Traders Make During Prop Firm Challenges
Prop firm challenges are designed to test your discipline, risk management, and consistency. While many traders have the skills to trade profitably, they still fail the evaluation because of small but costly mistakes.
If you want to pass your FTMO, MFF, E8, TFT, or any other prop firm challenge, it’s important to understand these mistakes and avoid them.
Here are the top mistakes traders make during prop firm challenges—and how you can prevent them.
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1. Ignoring Risk Management
One of the biggest reasons traders fail is poor risk management.
Prop firms have strict restrictions such as:
• Daily drawdowns
• Max overall drawdown
• Lot-size limits
• Loss limits
Many traders ignore these rules and take oversized trades trying to hit the profit target fast.
How to Avoid This Mistake
• Risk only 0.5%–1% per trade
• Always use a stop-loss
• Avoid stacking too many trades
• Focus on survival before profit
Proper risk management increases your chance of passing more than any strategy.
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2. Over-Trading Out of Fear or Greed
When traders try to rush the challenge, they start entering trades without setups.
This often leads to:
• Revenge trading
• Emotional decisions
• Back-to-back losses
Prop firm challenges punish emotional trading more than anything else.
How to Avoid This Mistake
• Trade only during your chosen session
• Stick to your strategy—not your emotions
• Take breaks after losses
• Set a maximum number of trades per day
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3. Trying to Hit the Profit Target in One Day
Many traders rush to reach the target in one or two days, but this increases the chance of:
• Violating the daily drawdown
• Taking bad trades
• Over-leveraging
Prop firms don’t reward speed—they reward discipline.
How to Avoid This Mistake
• Aim for steady gains
• Spread your trades across multiple days
• Use a focused weekly plan
Passing in 1–3 days is possible, but it must be done safely—not recklessly.
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4. Trading During High-Impact News Without Checking the Rules
Some prop firms don’t allow trading during high-impact news like:
• NFP
• CPI
• Interest rate decisions
• FOMC
If you trade during restricted news events, you fail—even if the trade is profitable.
How to Avoid This Mistake
• Read your prop firm’s news rules
• Avoid red-folder news unless the firm allows it
• Use a news calendar (Forex Factory, MyFXBook, etc.)
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5. Switching Strategies Midway
Many traders lose patience and start changing their trading system during the challenge.
This causes inconsistency, confusion, and unnecessary losses.
How to Avoid This Mistake
• Stick to one trading plan
• Use a strategy you already tested
• Don’t change lot sizes randomly
• Trust your system
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6. Not Understanding Prop Firm Trading Rules
Each prop firm has different rules for:
• Maximum daily loss
• Maximum overall loss
• Holding trades overnight
• Holding trades over the weekend
• Allowed assets
• Lot sizes
Failing a challenge because of a rule violation is frustrating—especially when your trading was good.
How to Avoid This Mistake
• Read the rules before trading
• Ask support if anything is unclear
• Keep a checklist by your screen
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7. Revenge Trading After a Loss
Revenge trading is one of the fastest ways to blow a challenge.
After a bad trade, many traders try to “win back” their losses quickly—but end up doing more damage.
How to Avoid This Mistake
• Stop trading for the day after a big loss
• Pause and reset your mindset
• Use strict daily limits
Self-control is more valuable than any indicator.
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8. Ignoring Market Conditions
The market changes every day.
Some days are trending, some are ranging, and some are extremely volatile.
Traders who don’t adapt to conditions usually fail.
How to Avoid This Mistake
• Trade only when the market matches your strategy
• Avoid trading during chaotic volatility
• Check higher timeframes for structure
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9. Not Using a Trading Journal
You can’t improve what you don’t track.
Without a trading journal, traders repeat the same mistakes over and over again.
How to Avoid This Mistake
• Record every trade
• Review your performance weekly
• Identify your weak days and weak pairs
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10. Lack of Patience and Discipline
The truth is:
Most traders fail because they don’t follow their own rules.
Discipline is the real key to passing any prop firm challenge.
How to Avoid This Mistake
• Plan your trades
• Avoid impulsive decisions
• Follow your risk rules
• Stay consistent
