Prop trading challenges offer traders the opportunity to demonstrate their trading approach within defined risk parameters. However, many participants struggle due to behavioural errors and poor capital management rather than market conditions.
At Centrino Trader, we do not offer training programs or guaranteed techniques. Instead, we encourage traders to operate responsibly, understand the challenge structure, and trade within the set rules.
Below are common mistakes observed across prop trading evaluations.
1. Taking Excessive Risk to Reach Targets Quickly
Many traders increase position sizes aggressively to meet profit targets faster.
This often leads to:
- Breaching drawdown limits
- Increased emotional pressure
- Account failures
Better approach: Maintain controlled risk exposure and allow results to develop gradually.
2. Overlooking Trading Rules and Limits
Ignoring daily loss caps, maximum drawdowns, or trade restrictions is a common reason for disqualification.
Better approach: Treat challenge rules as core trading conditions — not optional guidelines.
3. Emotional Decision-Making
Reacting impulsively after wins or losses often results in inconsistent outcomes.
Better approach: Follow a structured approach and avoid making decisions based on short-term emotions.
4. Entering Trades Without Clear Criteria
Trading without predefined entry and exit logic increases randomness.
Better approach: Only participate in trades that align with your personal analysis and risk comfort.
5. Using Strategies Unsuitable for Evaluation Accounts
Some approaches that work in personal accounts may not align with prop challenge risk limits.
Better approach: Adapt trading activity to the specific challenge environment.
6. Lack of Patience and Consistency
Rushing trades often leads to unnecessary losses.
Better approach: Focus on steady execution rather than rapid profits.