 some really, really exciting news. Wow, fantastic. Welcome to the Traders Clinic, your regular shot in the arm of trader insights, philosophy and knowledge brought to you by two professional manning managers, Ali Crooks and Charlie Burton. In each episode, we answer your burning questions and we cover all things from the world of trading. So, what's the exciting news? I'm so excited. Mate, I found this thing. You found a thing? I found a thing. It's really, really good. OK. So what I'm going to do is I'm going to give somebody some money, about 800 pounds. And then what's going to happen is I'm going to take a test. And when I pass the test, because it'll be easy, what's going to happen is they're going to give me 200,000 pounds to trade with. Wow, what real money? Yeah, mate, it says on their website, it's real. It's real. So it's legit? Obviously. Mate, it's totally legit. Now, I know what you're going to say. It's not like the other ones. You know, there's not like these other ones. This one is real. This is the real deal, not like those other ones that we've heard about, you know, who fund you. And so this is the real deal. Oh, this is, mate, I've never seen anything like it. It's amazing. Well, what are they saying? They've got all these people on their website, they've got all these testimonials about how much money they've made, and they've only got, like, three months trading experience. And now they're almost trading with a million, and they're doing so well, mate. And they're just dishing the money out. Oh, yeah, mate. They've not had a lot of money tree. Yeah, yeah, yeah. Just cash to just give the people live accounts? They're in with the banks, mate. They're in with everyone. They know exactly what they're doing. Real accounts? Yes, real accounts. I'm completely sure of it. Yeah, so because they told you it's real accounts. So they told me. So yeah, yeah, it must be true. Yeah. Why would I not take them on face value? No, exactly. And why would they not want to take someone who's only been trading a couple of months and give them real money to go and trade with? I thought if they take all these people who've got one month's track record, they've maybe got lucky or over-leveraged. Well, I must do this. I must do this. This is no brainer, isn't it? Who says that it can't be too good to be true? I mean, all these naysayers who say, oh, it's too good to be true, whatever. That's not true, because no. But even if the other ones were too good to be true, mate, this one, no, this one is the one. Right, OK. Anyway. So you get to be serious about this now, then. So on the back of my forex funds. Yeah, so we're filming this around the time that there's been this big blow-up with my forex funds. Yeah. So my forex funds have been shut down, and they've taken in over $300 million in application fees over the last few years. And they've promised clients that they're on real accounts that go into the real market with real money, with real liquidity providers, and that their best interests are your best interests, what we found out was that they're not real. Obviously, it's not real money, so it's not going in. There's nothing going into any liquidity providers, because there's no real trades. It's all demo account staff, and that their vested interests are not aligned with the individuals who are applying. And of course, they got up to all sorts of shenanigans in order to reduce profits, even of the traders who were good to reduce their profitability. So they didn't have to pay out so much. They're bringing all this cash in in application fees, 310 million pounds worth, or dollars worth. And of course, some traders are going to get through their tests and be successful, some. But even of those very small amounts, they will get up to things to try and reduce their profitability, or even turn someone who could have otherwise been profitable into an unprofitable month. Yeah, I think one of the things I'm noticing is the amount of response and chat that is going on about this. So two key things, will this be the end of prop firms? Are they going to have to be regulated? Should they be regulated? Should it even exist? And for me, the underlying issue there is that people are talking about this, and we spoke about this earlier, like the crypto market. It just seems this is the new fad. Everybody's hyper-focused on it. What's going to happen? And some people are talking like it's going to be the end of something amazing, whereas we've been saying forever, this is just ridiculous. And at some point, something like this would happen. It probably won't be the last one of these prop firms. And hopefully something will happen to mean this is regulated or dealt with in a specific way, or even stopped. Well, our viewers, you've heard us talk about funded accounts before, and you've heard our views on this. And we'll put the positives in there as well. But the negatives are, I think, certainly outweigh the positives. What you've just touched on there as far as the regulators are concerned, the SEC in the US and the regulators in Canada have come down on my forex funds. But I suspect because we know what regulatory authorities are like, they all follow each other. So it's only a matter of time before the European regulatory authorities start looking at this. And I was on the phone just three months ago with one of the, a genuine broker, who provides the terminals and everything, which is all branded for these funded firms. And they're all demo accounts, because she was telling me all that. And so they provide the software and all the live pricing and stuff for many of these funded account programs. And she was saying, it's only a matter of time before this whole industry has to get regulated because there's all sorts of shenanigans going on. Exactly. And so I think it's a good thing. That's a positive because we don't, you or I both don't envisage that business model completely disappearing, but it's gonna have to change a little bit. Yeah, I agree. And I think one of the things that's interesting is that you're, we've heard different stories from different angles. So the broker that provides, like you said, but we've also, you've spoken to a lady who is one of the poster people for this, for a particular brand. And even she had some things that she said about what goes on. I was sat, yeah, chatting in a closed room with her and she was one of the people that this particular firm rolled out because she's done quite well. But she did say, admit that she has to be careful because they widened the spread on her. And so they're limiting how profitable you can be because, and people still wanna do it. It's like this holy grail for people. Just trade on, I understand that people haven't got the money. And so they're desperate to be able to trade a larger account than they could trade with themselves. They see it as a way out, yeah. Yeah, but they've gotta see the counter that there's lots of things, even the better ones. And that was one of the better firms that they do widen out spreads at weekends and at certain times of the day as well. And that you're susceptible. Even the better ones who, for example, say, look, we don't limit the time that it takes you to pass the test and there's a few of them who do that now. But the bottom line is people have to realize that if you're trading on a demo account which 100% it is, either that or it's a live account but they've put a tiny little bit of margin in, they do not have millions and millions and millions of pounds to just dish out to people who have only passed a test in a month or two months. It's ridiculous. You would never get a hedge fund taking on a trader who's just passed a test in a month or two months or even six months. It just doesn't happen because you and I and anyone with any experience knows that anyone can put performance in in three months or six months or even a year. And then the next year it's completely different. So no hedge fund's gonna do that and no professional's gonna do that. So see it for what it is because it's not real or it's highly, highly margined with a little tiny little bit of deposit money on it and that's why they restrict you so much on your risk management. But they also restrict you so much on your risk management because then you're more likely to fail and then to have to start again and give them another application. Exactly. And on the basis of it being solely reliant on the money that comes in. So again, I think it's because people don't understand that concept you highlighted, which is there isn't millions and millions sloshing around for inexperienced traders just to get given. And I think once people can get that bit, well, the next counter argument is, well, okay, well they're bringing all this money in. Even if it is a demo account, I could still do this and get paid out. And I'm like, well, okay, you can, but let's look at where the industry may go. So let's say there's, I don't know, 50 million of influx coming in, of cash coming in for people who have paid their fee to take the test. Well, if that remains stable and then suddenly you've got another 20 firms because there's more and more firms popping up with giving different opportunities. Like you said, they're taking away the time limits. Then that same influx of people is being spread around. But what is potentially gonna happen is the best traders, which is a very, very tiny amount, may sit on one or two of the firms. Okay, well if that firm hasn't got enough money coming in, then they're gonna tighten the rules because they can't have those people taking too much money because the money is coming in from the fees that people are paying. So you've gotta look at it a little bit more long term and realize that this may all just end because there's not enough necessarily money coming in or it's being spread too wide or something goes wrong like this just happened. So see it for what it is. If you are looking to do it or you have done it and you've passed this test, see that little bit of money that you get as bonus money. Don't rely on it, don't assume it's gonna be there forever because things are definitely gonna change. And certainly don't see it as a holy grail because if you do make some money, it probably won't be much. And like you said, so take the money out. But then again, cleverly, what some of the providers do is they say, if you leave that profit in, you can use that as an extra buffer on your risk. So instead of you having a, let's say a 5% hard stop, so to speak, where you're out, all of a sudden we can widen that to 6% if you leave your profit in and then that profit goes into that. So people will then say, great, I've widened my buffer. Yeah, but you still haven't made any money. Exactly, yeah. Because you've just been widening your buffer. So they get up to all sorts of things to get you to keep the money in and then they don't have to pay you out. I just, the mind boggles what people get up to. It's the same as you just said earlier on. A few years ago, we had the same thing, people thinking that they're gonna make their riches in cryptocurrencies and don't get me wrong, cryptocurrencies itself has a place as an asset class. But the masses did not make their millions in that and it's exactly the same with this. The masses won't make their millions in it. See it for what it is, which is a clever business model for the businesses. You are the pawns in that business model. Don't come crying to us if it all falls over. I've had people sending me messages saying, I opened a tour, I ended up getting a 200,000 account, Charlie, and you're absolutely right. They stitched me up, so to speak. They did all those things that you guys told, said would happen, widening the spreads, poor execution fields, all that sort of stuff. To try and disrupt you. And I've had a number of people like that. But then you still get, there's a lot of people who still say, whatever we say, they're like, yeah, but I'm still gonna do it, cause I'm different. Oh yeah. Well, I would say it's that they're shouted in the midst of greed. They've got the greed sort of mist or the greed veil over them and they're not seeing things clearly because they're want and desire to get out of their job or have this big account or whatever it is, it's just clouding their judgment. So even if they do take on board what we've said, like you said, they're like, yeah, but I'll be different. I'll be the only one. I'll be the one out of the 10,000 that actually does it. And there will be. We have to admit that there will be certain people who will get through and they do make some money with it. So it does happen, but please just have your eyes wide open if it doesn't happen for you because it's quite a small number who actually, anyone can get through and then you might be profitable for a month, maybe two months. And then all of a sudden you have a bad month and you've got stopped and you have to start again. That's what's more common. And so I've spoken to the CEO of one of these companies. I know exactly what goes on. And so just see it for what it is. Don't cry about it if it doesn't work. If you get something out of it, like you said, use that money, put it into a real account so you can start building your own capital on a real account. And someone actually said to me, Charlie, what advice would you give me? I've tried that, and yes, it didn't go well, but I have such small capital. And the only thing I can say is, well, at least trade that capital and then if you can add capital to it, if you're a reasonable trader, put savings into it and then you gradually, you are exponentially gonna grow that account because you're growing it on your trading, but also growing it from additions into it as well. And that would, and if someone says, well, I don't have much spare savings, you'll find a way. I know people who have taken on second jobs. Exactly, and I was gonna say exactly the same thing. Same. If you want something enough, you'll find a way. And there's nothing better than trading your own money because everything is yours then. You're in control, yeah? Yeah. Good. So yeah, be wary of those websites and make sure you take control of what you're doing. I think we'll wrap it up there. I think that's a really good... Is there not another question? Oh yeah, sorry, we've got a question. Yes, sorry, I forgot that one. So this is interesting because this could lead on to what we've been saying. Is there one thing that you see traders who are successful doing that the traders who are not successful don't do? We talked about this over a coffee earlier on and I think we both agreed. It's so difficult to say, oh yeah, there's one thing because it's not. There's actually a multitude of things that successful traders will do within their daily habits, weekly habits, but consistency is probably the word that we agreed on. Yes. The consistency in approach to the markets as opposed to jumping around from strategy, oh, I'm gonna try this strategy now on this strategy. Most successful traders aren't doing that. I think it's the 80-20 rule. 80% of what they do is probably very similar to what they were doing five years ago. I know it is for me. If you go, you can go back 10 years ago and bar the core things of managing risk correctly, sticking to your rules. It's the consistency, as you said, and maybe they tweak 20%. So they change a little bit what they do. They're aware of different themes that are happening in the market at that time. Maybe they choose to run their trades for longer as they get more confident, but overall it's a consistency of approach and they're not jumping on funded accounts. They're not being lured in by something they might, they might diversify a bit, they might move a little bit into crypto, but the majority of successful traders are doing the same old thing regardless of what is the new thing in the market. Yeah, no drastic changes. Whereas someone who's newer is doing drastic changes regularly, whereas someone who is successful is not doing that. Like you said, small tweaks, as I said over coffee, it's a bit like having a football team and the manager might just take out one player and make one change. So overall the structure is the same, but they'll only make minor adjustments to that team and that's exactly what a successful trader would do. Brilliant, so. On that note, his name's Ali Crooks. His name's Charlie Burton. Trained safely out there. Thank you so much for watching. I'll see you in the next video.