Rule #10: Less is more - the minimalist approach to trading success

Minimalism and maximalism are two extreme approaches that can be observed not only in daily life but also in trading. A minimalist focuses on quality, simplicity, and efficiency, while a maximalist often strives to maximize everything—number of trades, risk, or profits—often leading to chaos and dissatisfaction. In prop trading, minimalism is not just a philosophy—it’s a crucial trait that distinguishes successful traders from those who struggle.

Minimalism in prop trading

Minimalism in prop trading means focusing on what matters most, avoiding excess, and finding satisfaction in small victories.

A minimalist doesn’t look for opportunities everywhere and at any cost. They have the patience to wait for the best setups instead of jumping into the market at every chance. They don’t trade just for the sake of trading but in alignment with a clearly defined strategy.

A minimalist understands that protecting capital is more important than chasing maximum profits. They only risk what is necessary to achieve their goals and avoid situations where a single poorly thought-out trade could undo days or weeks of work.

In the world of prop trading, where every percentage point matters, a minimalist appreciates even small gains. For them, every step forward is a success, and steady progress is more important than spectacular but risky results.

Is maximalism in prop trading a recipe for trouble?

Maximalism in trading is the opposite of minimalism. A maximalist strives to maximize everything: the number of trades, position sizes, and risk. They want to achieve as much as possible in the shortest time. At first glance, this might seem like an ambitious approach, but in reality, maximalism in trading often leads to losses and frustration. Why?

• A maximalist is rarely satisfied with what they’ve already achieved. If they’ve earned 1%, they wonder why it wasn’t 2%. If they win one trade, they immediately look for another, ignoring the risks. This mindset leads to constant pressure and often to losses.
• The desire to maximize profits leads maximalists to make impulsive decisions. They take trades that don’t meet their criteria, increase risk beyond reasonable levels, and quickly lose control over their accounts.
• Maximalism is a common cause of overtrading. Maximalists feel they must always be active, believing every opportunity must be seized. As a result, they take too many trades, leading to greater risk and losses.

Prop trading is a specific form of trading where the capital managed by the trader isn’t their own. Every loss not only reduces profits but also puts the trader’s funded status at risk. In such an environment, minimalism isn’t just an advantage—it’s a necessity.

Why minimalism in prop trading outshines maximalism

• A minimalist knows that the most important thing in prop trading is staying in the game. Protecting capital allows them to continue trading even in challenging market conditions.
• Minimalist trading means fewer trades, less risk, and less pressure. This allows traders to focus on the quality of their decisions, leading to better results and greater peace of mind.
• A minimalist builds their results step by step. Instead of risking everything on one big trade, they focus on systematically growing their capital. This approach ensures stable results over the long term.

Minimalism in trading: A matter of mindset and discipline

• Focus on quality setups: Instead of opening multiple positions every day, concentrate on a few setups with high probabilities of success. Ask yourself: “Does this trade truly fit my strategy?”
• Set strict limits: Always know how much you can lose on a single trade and in an entire session. Stick to these limits without exceptions.
• Celebrate small wins: Every day that ends in profit is a success, even if the gains are small. Avoid comparing yourself to other traders and focus on your own progress.
• Be patient: If the market doesn’t offer good conditions, don’t force trades. Time spent observing the market or analyzing its movements is just as valuable.

Minimalists understand that trading is a process, not a one-time effort. They focus on long-term capital building rather than quick wins.

Maximalism: A path to chaos?

Maximalism, with its drive to maximize everything, often leads to chaos, losses, and frustration. In trading, where quality outweighs quantity, minimalism is the key to success. Remember, less is more—and in prop trading, “less” can mean greater profits, greater peace of mind, and greater satisfaction in your work.