The biggest mistake many traders make during a prop firm challenge is overleveraging to chase a profit target quickly, which almost always results in breaching the daily loss limit. Passing a challenge is not a sprint; it requires strict risk management and treating the evaluation account just like a live funded account.
When managing your risk and position sizing, always calculate your lot size based on your stop loss and maximum allowable drawdown rather than a fixed monetary goal. A single emotional trade can wipe out weeks of steady gains.
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What is the hardest rule for you to stick to during a challenge? Let us know below!