Skills Required in the Process of Becoming a Pro Trader
Qualities and Mindset for Passing the Evaluation in a Prop Firm
Professional traders who pass the evaluation system of prop firms and trade with provided capital share common skills and attitudes. Beyond mere knowledge and experience, practical mindsets and behavioral principles are essential to pass the evaluation and continue achieving results thereafter.
In this article, we will explain the skills and mindset required by evaluation-based prop firms from the unique perspective of a Japanese exam-based prop firm, incorporating insights from the overseas prop industry.
Table of Contents
2. Mindset for Becoming a Prop Trader
3. Skills and Actions Required for a Prop Trader
4. Elements Required Specifically by Exam-Based Prop Firms
5. Differences from Discretionary FX Trading and the Significance of the Evaluation System
5-1. Main Differences from Discretionary Trading
1. To Become a Prop Trader
In prop firms where traders gather with specialized trading knowledge and unwavering passion, opportunities for capital management according to one's ability are expanding.
In evaluation-based prop firms, a system is in place where only traders who achieve a certain level of performance can receive capital provision. This is a meritocratic environment where not only numerical skill but also mindset and behavioral discipline are assessed.
2. Mindset for Becoming a Prop Trader
Below are 5 mindsets commonly observed in traders who are achieving results in prop firms.
・Discipline
The ability to strictly adhere to rules and strategies and make calm judgments without being swayed by emotions.
・Patience
The calmness to look towards long-term performance without being overly affected by short-term results.
・Flexibility
The flexible thinking ability to adapt immediately to sudden market changes or trend shifts.
・Risk Management Awareness
The design to minimize losses and a strong will to overcome one's own emotions.
・Eagerness to Learn
An attitude of continuously learning and improving to adapt to the ever-changing market.
All of these mindsets serve as a foundation for achieving **sustainable growth, not just short-term success**.
3. Skills and Actions Required for a Prop Trader
Professional traders who clear the evaluation and consistently generate profits commonly exhibit the following skills and daily actions.
・Strong Mental Fortitude
The ability to continue trading without losing calmness and self-confidence, even when exposed to market fluctuations and pressure.
・Effective Communication Skills
Growth through output is required, such as verbalizing strategies and sharing knowledge within the community.
・Continuous Effort
The market environment is constantly changing, so making daily learning and reflection a habit is directly linked to results.
・High Ethical Standards and Integrity
Not only adhering to trading rules, but also maintaining an honest attitude to preserve trust from the firm is essential.
・Passion
Maintaining an intrinsic motivation towards "the act of trading itself," beyond financial rewards.
4. Elements Required Specifically by Exam-Based Prop Firms
In exam-based prop firms, skills are assessed based on criteria and perspectives different from those of general traders.
・Trading with Awareness of External Evaluation
Requires strategic design that can withstand evaluation from others under clear rules, not self-satisfying trading.
・Reproducibility and Discipline
Emphasis is placed on consistently achieving stable performance with the same rules, rather than focusing on individual wins or losses.
・Resistance to Psychological Load During Evaluation
Maintaining mental strength and concentration is essential when trading within limited periods and conditions.
・Ability to Utilize Educational Resources
In many Japanese-based prop firms, educational materials and instructor-like support are substantial, requiring an attitude of actively absorbing them.
5. Differences from Discretionary FX Trading and the Significance of the Evaluation System
In discretionary FX trading conducted in overseas or domestic FX markets, traders freely buy and sell using their own funds. In contrast, prop firms have the responsibility to manage funds according to regulations and share the results with the firm.
5-1. Main Differences from Discretionary Trading
- Personal Capital vs. Prop Firm Demo Capital: Self-responsibility and Freedom vs. Discipline and Trust
- Result Evaluation Method: Subjective Satisfaction vs. Objective Evaluation Criteria
- Scope of Failure Impact: Limited to Individual vs. Impacts the Entire Partnership
5-2. Benefits After Passing the Exam-Based Firm (Especially for Japanese-Based Firms)
- Detailed Japanese Language Support
- Culturally Considerate Evaluation Process and Educational Design
- Follow-up system that carefully acknowledges even small successes
- Networking with Domestic Traders
6. Summary
To succeed as a prop firm trader, the right mindset, daily actions, and an independent attitude are essential, even more than mere skills and knowledge.
Especially in exam-based prop firms, the premise of being "evaluated" makes the qualities required for a trader more clearly apparent.
Furthermore, in a Japanese-based environment, there is a significant advantage in receiving meticulous support focused on development and growth assistance, going beyond just an evaluation system.
Beyond trading skills, the attitude of continuously facing oneself is the key to long-term career success.