The mistakes that cost traders their prop firm accounts

These are the mistakes behind most failed accounts. The good news is that every one of them can be avoided.

Taking on too much risk

Big trades to reach the target quickly are the number one reason accounts fail. Keep the risk on each trade small and the same every time.

Thinking the limit is static when it's actually trailing, or forgetting that floating losses count. Our drawdown guide explains both.

Opening or closing a trade inside a restricted news window can wipe out the profit or fail the account.

Copying another trader, or hedging between accounts or firms, breaks the rules almost everywhere and usually costs you the account.

The trading day normally resets on the server's clock, so losses on either side of your midnight can count as the same day.

Bots bought from third parties often break rules on hold times or high-frequency trading. Ask the firm in writing before you switch one on.

After a loss, stop. The next trade won't be better just because you need it to be.

Will I get a refund if I break a rule by accident?

Almost never. A few firms offer a discounted retry.

Will the firm warn me before closing the account?

No. Hard breaches usually close the account automatically.