In the latest episode of the “We Are Funded Trading Plus” podcast, Simon Massey, CEO, and Jamie Miller, Chief Strategy Officer of Funded Trading Plus, explore the future of trading firms, the viability of trading for a living, and the potential evolution of trading platforms. Here are some key takeaways from their discussion.
Futures vs. CFDs: Which Will Prevail by 2025?
The first question addressed in the podcast was whether futures trading firms would become more popular than CFD firms by 2025. Both hosts had differing opinions. Simon was quick to disagree, emphasizing that futures firms are largely U.S.-focused, whereas CFDs are more popular internationally. Jamie, on the other hand, highlighted that the growing regulatory concerns around CFDs might shift the tide in favor of futures, especially with their more reliable data sources.
However, both agreed that if CFDs were banned in major markets like the U.S., futures might indeed rise in popularity. Simon even expressed interest in exploring the possibility of Funded Trading Plus entering the futures market as a viable alternative or complement to CFDs.
Can You Trade for a Living?
Next, the conversation turned to a timeless debate: whether trading for a living is realistic for the average trader. Both Simon and Jamie agreed that it is achievable, but only under certain conditions. Simon mentioned that traders who rely solely on trading for their income usually have diverse income streams or a substantial capital buffer. Jamie added that while some traders can make a living off trading, it’s never advisable to depend on it as the sole source of income, emphasizing the importance of a diversified income portfolio.
Simon humorously reflected on his own experience trading full-time, stating that while it is possible, it takes a toll—joking that it’s why he looks much older than he is.
Is Prop Trading the Best Route for Beginners?
Prop trading has gained significant traction in recent years, and the duo debated whether it’s the best entry point for new traders. Jamie was quick to agree, noting that the structured environment of prop firms offers accountability that can help traders develop better habits. Simon also pointed out that prop trading accounts offer the experience of managing large sums of money without the personal financial risk, making it a great way for beginners to get their feet wet.
The team agreed that prop firms serve as an excellent training ground, where traders can learn risk management and accountability. Many who succeed with prop firms eventually move on to fund their own personal trading accounts.
Should There Be Time Limits on Evaluations?
A unique feature of Funded Trading Plus is the removal of time limits on their trader evaluations. Simon passionately defended this decision, explaining that time pressure doesn’t foster good trading habits. Comparing it to fund management, he explained that no one wants their fund manager making rushed decisions to meet arbitrary deadlines.
Jamie agreed but added that while the framework is important, the success of a trader ultimately depends on the individual behind the monitor. Each trader’s behavior and psychology play a crucial role in their long-term success.
Is Luck a Major Factor in Trading Success?
One of the most engaging parts of the episode was when Simon and Jamie debated the role of luck in trading. Simon leaned towards disagreeing, stating that while luck can be a factor in short-term wins, consistent success is primarily due to skill. However, Jamie offered a more nuanced view, acknowledging that luck does play a role, especially in unpredictable market movements. Both agreed that while luck can get you short-term success, long-term traders rely heavily on skill and strategy.
Will Funded Trading Replace Traditional Retail Trading?
In the final segment of the podcast, Simon and Jamie discussed the potential for funded trading programs to replace traditional retail trading accounts. Both were skeptical about a complete replacement, but Simon highlighted the shift in the industry. As prop firms gain popularity, traditional brokers are starting to feel the impact. Jamie noted that younger generations, who are drawn to fast-paced trading, may accelerate the growth of funded trading accounts as they seek quicker access to the markets.
While both hosts agreed that funded trading will continue to rise, they were clear that traditional retail trading won’t disappear entirely—at least not anytime soon.
Conclusion
This episode offered plenty of thought-provoking discussions on the future of the trading industry, the viability of trading for a living, and the role of prop trading firms. As the trading landscape evolves, platforms like Funded Trading Plus are at the forefront, challenging conventional wisdom and offering new opportunities for traders.