How I Lost My First $25,000 Prop Firm Account — And What You Can Learn From It

In trading, your worst enemy is never the market — it’s you.

A few years ago, I purchased a $25,000 prop firm account. I had passed the challenge, signed the contract, and was excited to finally start earning consistent payouts. But within just a few weeks… I blew the account.

Not because my strategy didn’t work. Not because the market was unfair. But because of greed, overconfidence, poor risk management, and worst of all — trying to be someone I wasn’t.

This is the unfiltered story of how I lost my first funded account, and the painful but necessary lessons I want every aspiring trader to learn before it’s too late.


I Thought I Was Ready

After passing the evaluation phase, I felt invincible.

I had just hit a 10% profit target in under 30 days using a simple strategy I trusted. Naturally, I thought,

“If I did it once, I can do it again. And now, with real capital.”

I started trading my funded $25K account with excitement… and zero discipline.


The Downward Spiral

1. I Abandoned Risk Management

In the FTMO Challenge, I followed rules to the letter:

  • 1% risk per trade
  • Waiting for clean setups
  • Tracking every trade in my journal

But once I got funded, I tossed all that aside.

I started risking 3–5% per trade, chasing profits like it was a sprint. A few wins in a row gave me false confidence. I told myself I could make $1,000 in a week if I just pushed a little harder.

Learn why proper position sizing is key to survival

Big mistake.


2. I Started Copying Other Traders

I joined multiple signal groups and Telegram channels — thinking more eyes meant better trades.

But I stopped analyzing charts myself. I took trades I didn’t understand. I chased signals blindly. I entered setups that didn’t align with my style.

One signal hit a 40-pip drawdown before reversing — and it wiped out 6% of my account in one trade.

Why emotional stability matters during drawdowns


3. I Let Greed Take Over

Instead of being content with slow, steady gains…
I wanted big wins. Fast.

I over-leveraged positions. Ignored stop losses. Held losing trades hoping they’d “come back.”
They didn’t.

I violated daily drawdown rules multiple times. And that was it — account revoked.

The Vices That Killed My Funded Account

  • Greed: I wasn’t trading to grow; I was gambling to flip capital.
  • Overconfidence: I assumed past performance guaranteed future success.
  • Copy Trading: I took trades I didn’t understand, breaking trust with my own system.
  • No Discipline: No journaling, no reflection, no risk control.
  • Comparison: I was watching others online, feeling behind, and chasing results that weren’t mine to chase.

Read how to avoid common mistakes in trading

The Emotional Impact

The loss wasn’t just financial. It broke my confidence.

I went weeks without opening a chart. I questioned whether I was cut out for trading at all.
And all because I didn’t follow the very rules that helped me get funded in the first place.

What I Wish I Did Instead

  • Stick to 1% risk per trade
  • Trust my own strategy
  • Avoid signals unless they aligned with my system
  • Journal every setup and review my performance
  • Treat the funded account as a real business

Read how to avoid common pitfalls in trading


Advice to New Traders

If you’re chasing a funded account or already have one, remember this:

Getting funded is not the goal — staying funded is.

It’s not about the payout. It’s about building habits that make you a professional, not a lucky trader.

Follow your rules. Respect your risk. Trust your process.
If you’re trading to impress others, you’ll always lose.


Final Thoughts

Final Thoughts

Losing that $25,000 funded account was one of the hardest lessons of my trading journey. But in hindsight, it taught me more than any course or strategy ever could.

If you’re serious about trading, don’t learn this lesson the hard way like I did. Learn it now — while your account is still intact.

And if you need structure, accountability, or mentorship, don’t do this alone.
Join FNFOREX Academy community to get proper follow up, and constant guidance and trade with purpose, not pressure.


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