You want to be a trader. First, you have to pass the trader evaluations to get money to trade. This test is hard. Only a few people pass it.
Most people fail because of a tricky rule. They are told to let their winners run, but this test has a drawdown rule that can make you fail if your money goes up and then comes down too much. The people who make the test want you to make this mistake.
But you can be smart and win! Here is a simple plan.
Simple Rules to Pass the Test
1. Don’t Be Greedy
It is better to get a little bit of money often than to wait for a lot of money and then lose it. When your trade is winning, take some of the money out. This makes it safer. Don’t be greedy, or you will lose.
2. Pick Just One Thing
Don’t try to trade everything. It is better to pick just one thing, like the E-mini S&P 500 futures. Learn all about it, like a good friend. Know when it moves and how it acts.
3. Be Careful with Your Money
This is the most important rule. You need a plan for how much money you can lose.
- Don’t lose more than $300 on one trade.
- Only trade with two contracts when you start.
- If you lose three times in a row, stop for the day. Take a break.
4. Don’t Trade Too Much
Trading too much can lead to losses. It is better to take just a few trades each day. I like to take about three trades. That is all you need to win.
The Simple Math
With our plan, the numbers are easy.
- You are okay with losing $300 on a bad trade.
- But on a good trade, you make $650 in profit.
- If you win half the time and lose half the time, you can pass the test in just 10 trades!
Passing this test is not about luck. It is about being calm, being careful, and having a good plan. You can do this!
