HOW TO BUILD A 7 FIGURE TRADING PORTFOLIO
Trading capital has become easier than ever to obtain. We say easier, it’s not easy – but much more accessible to retail traders!
This provides a huge amount of opportunity for traders to scale to a huge amount of capital under management. But, how do you actually get there? How do you build a 7 figure trading portfolio?
You can build a 7 figure trading portfolio in 2024 by leveraging prop firms. Online prop firms offer capital to traders in exchange for a profit split. This is by far the fastest way to grow your total capital under management, whilst compounding your own trading accounts alongside.
In this article we’ll look at the benefits, drawbacks and blueprint you should be following if you’re looking to obtain a large trading portfolio in 2024. So, let’s get into it…
Building A 7 Figure Trading Portfolio In 2024
Now that trading capital is really accessible through online prop firms like Lux Trading Firm, there is really nothing holding traders back from amassing a huge amount of trading capital.
Taking it back a few years, you’d rarely meet a retail trader that was able to net £5000+ in trading profits over a month. These days, you hear this happening constantly.
That’s not to say that trading has become easier – it certainly hasn’t. However, accessing large trading accounts has become much easier.
With that being said, if you’re a retail trader, your goal should be to amass a large trading portfolio. Whether this is made of your own funds, prop firm funds or both, this enables you to trade full time and make a considerable living from the markets.
The Benefits Of Having A Large Trading Portfolio
There are some huge benefits to having a larger trading portfolio and more capital under management.
Primarily, these benefits are financial.
Let’s take a £10,000 trading portfolio, 1% gain is £100. This is respectable, of course, but it’s not enough money to allow you to quit your job and take trading to the next level.
However, if you had a £1,000,000 trading portfolio, a 1% gain is £10,000. If you were earning £10,000 per month pre-tax, that puts you in the top bracket of earners in the UK and you’ll have a considerable income.
This allows traders a level of freedom and potentially more time to spend perfecting new strategies, new trading styles and furthering their development.
The large pound value per percent also allows traders to use a very small percentage risk per trade and still amass a large pound value trade. This is great for risk management and allows for safer trading and potentially more consistent results.
Where To Get Started In Scaling Your Trading Capital
There is a very obvious but often very overlooked prerequisite to scaling your trading capital. You first need to be a profitable trader over the long term.
We’ve seen it over and over again – unprofitable traders putting all of their time into trying to scale their trading capital without having the groundwork in place to actually trade profitably or manage the funds they obtain.
This is a recipe for disaster.
Before even considering growing your capital, you want to be earning a consistent 0.5%+ per month in the markets over a long period of time. If you’re having months of 1-5%, you’re greatly outperforming the markets on average – which is an amazing place to be.
Of course, on a small trading account, you won’t be earning money at this stage – but it’s crucial.
If you cannot trade a £100 account, you cannot trade a £1,000,000 account.
So, spend your time backtesting, developing, learning and testing strategies. Develop an objective and rule based trading strategy that performs over the long term. Deploy the strategy in a live environment, hone your risk management and start building your confidence in the markets.
How To Grow Your Trading Capital
Now that we have discussed the precursor, let’s discuss how to actually grow your trading capital.
As previously mentioned, this can be drastically sped up through leveraging prop firms.
Let’s take Lux Trading Firm as an example here.
We offer our traders a trading challenge, to prove they can trade the markets profitably before being given our real trading capital. This is standard practice across the industry.
In our trading challenges, traders can start with a demo account of $50,000, $200,000 or $1,000,000.
Once passing the trading challenge, traders will be given real trading capital.
Our traders are given a capital increase for every 10% profit earned on their trading accounts, providing the rules have been adhered to.
This means that in between 3 and 8 stages (Individual 10% growth on the account), the trader is able to reach $10,000,000 in real trading capital.
This scaling potential is obviously much faster than if you traded your own account – even if you went full margin on every trade and tried to gamble in the markets.
There are of course other prop firms out there to work with too, alongside Lux Trading Firm.
It’s worth noting that many prop firms are unreputable and offer traders ‘demo’ capital. These firms should be avoided at all cost if you’re looking for longevity in your trading as they are essentially Ponzi schemes.
The Psychological Effects Of Having A Large Trading Portfolio
The benefits of having a large trading portfolio are clear, however, it’s not easy to maintain this level of capital for most traders.
Ultimately, this comes down to the sheer amount of stress this can cause traders. If you have over £1M in the account you’re trading, every 1% is going to be £10,000. For most traders, even with large capital, this is a huge amount of money.
In periods of drawdown, let’s say 3.5%, you’re going to be down £35,000 which is more than the average yearly salary in the UK.
This becomes incredibly challenging for traders – especially traders that have managed to amass such large capital in such a short period of time.
For this reason, it’s incredibly important to dial in your trading psychology, journaling and actively work on this part of your trading – more so than your strategy at times.
We actually provide our Elite Traders a trading mentor for this exact reason – we know how challenging this can be but the results can be very much worth it if traders are able to push through the emotions that arise.
In Summary – Can You Build A 7 Figure Trading Portfolio?
In conclusion, it’s entirely possible to build a 7 figure trading portfolio if you spend time putting the groundwork in place, then leverage online prop firms to help scale your capital.
If you’re looking to become a funded trader, work with Lux Trading Firm today.
About Company :-
We are a leading proprietary trading firm based in London (UK), specializing in supporting experienced prop traders.
Our commitment is to help traders excel and provide the tools and capital they need to compete in a marketplace defined by change and disruption.
We are focused on seeking out trading and investment opportunities to grow our capital in the global financial markets.
Click Here For More Info.:- https://luxtradingfirm.com/
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