Rule #8: Protect the gains you’ve worked hard for

When approaching the final stages of a prop trading verification phase and nearing the achievement of “funded” status, maintaining control over the gains you’ve worked hard to achieve is paramount. If you’ve already reached 80% of the required profit target, you’ve overcome the majority of the challenge. At this point, the focus should shift toward safeguarding what you’ve accomplished and managing your capital prudently to reach the finish line. Unfortunately, many traders fall into the trap of overconfidence during this crucial phase and start taking unnecessary risks, potentially undoing all their hard work. Losing 50% of your progress in a single session after ten or twenty days of disciplined trading is not just a financial setback but also an emotional blow that can erode your motivation and confidence.

The danger of overconfidence when close to success

Reaching 80% of the profit target is a clear sign that you’re closer to success than you’ve ever been. This is not the time to increase your risk. Reflect on the effort it took to get to this point—daily market analysis, patience, and consistent, deliberate decision-making. You’ve worked hard to get here, but ironically, this proximity to the goal often tempts traders to adopt an aggressive approach to finish the stage quickly. This mindset can be dangerous, as it only takes one reckless session to undo weeks of progress and lose control of the account.

Losing what you’ve already earned in a single session after weeks of methodical progress feels like throwing away all your effort. If you’ve spent ten days systematically building up your account and then lose the gains in one emotional decision, it indicates a lack of control over your emotions and strategy. Trading is a process, and protecting your gains is a fundamental part of that process, enabling steady progress without jeopardizing your capital with excessive risks.

Managing risk vs. gambling behavior

There’s a significant difference between controlled risk management and what could be considered a gambling approach. For example, if you aim to achieve a 3% profit in a single day while risking the maximum allowable daily drawdown, you’re gambling rather than trading strategically. Although this approach might yield quick results occasionally, the likelihood of losing everything in one session is much higher. It’s a risky game that rarely results in sustainable success.

On the other hand, if you’ve spent 10 or 20 days carefully building a 5% return, you’ve demonstrated that your strategy works and that you have the discipline to execute it. Being close to your target confirms that your approach is effective. At this point, there’s no justification for risking all your progress on one desperate trade. Instead, focus on consistency and capital preservation, avoiding impulsive decisions that could wipe out all your hard-earned gains.

The importance of step-by-step progress

Trading is about building results incrementally, not achieving your goals in a single leap. Each day of steady progress adds a brick to the foundation of your success. Taking excessive risks and losing what you’ve already achieved is akin to abandoning the process you’ve been following so diligently. Reaching 80% of the target is the result of many small, well-thought-out decisions. Why risk it all in one session?

When you’ve completed most of the work required, your priority should shift toward protecting your capital and progress rather than jeopardizing everything with one poorly thought-out trade. Trading is not a sprint—it’s a marathon. Each percentage point of profit reflects the effectiveness of your strategy, and it’s your responsibility to protect that progress and avoid unnecessary losses.

Setting limits to preserve gains

To avoid the temptation of excessive risk, it’s wise to establish clear limits on how much of your progress you’re willing to risk. For example, if you’ve achieved 80% of your target, you might decide not to risk more than 10% of those gains. This approach ensures that even if you encounter setbacks, the majority of your progress remains intact.

Your success so far proves that your strategy works. Stay committed to it, and resist the urge to take impulsive actions that could jeopardize everything you’ve achieved. Remind yourself that patience and systematic progress have brought you this far.

Recognizing emotional triggers

Close to completing a stage, it’s natural to feel the pressure to finish quickly. Identify situations where you might be more prone to taking risks—such as when you’re just a small percentage away from the goal. In these moments, it’s easy to fall into the trap of making impulsive decisions. Train yourself to recognize these situations and consciously resist the urge to deviate from your plan.

The psychological cost of giving back gains

Losing a significant portion of your progress is not just a financial loss—it’s also a heavy psychological burden. Watching hard-earned gains disappear can lead to frustration, a sense of wasted effort, and emotional decision-making. The urge to recover losses quickly often triggers further mistakes and deeper losses.

To avoid this, focus on maintaining emotional control and adhering to your strategy. This approach ensures steady progress toward your goal without succumbing to the risks of overtrading or impulsive decisions.

Protecting what you’ve built

When nearing the end of a stage, the most important thing is to protect what you’ve already achieved. Every percentage point of profit represents your patience and disciplined effort. Don’t jeopardize that progress with unnecessary risk. Trading is a long-term endeavor that requires safeguarding both your capital and your gains. There’s no justification for losing weeks of progress due to one rash decision.

Stay patient and systematic in your approach, knowing that each passing day brings you closer to success. Avoid the temptation to rush, and remember that trading is a process, not a single decisive moment. Protecting your gains and continuing to follow your strategy will ensure that you reach your goal without undoing all your hard work.