5 Common Mistakes to Avoid in Prop Trading Challenges

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Posted By John Smith
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Reviewed By Jane Doe
Published: Jul 12, 2026 • Updated: Jul 15, 2026 1 min read
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Mistake 1: Ignoring the Daily Drawdown Rules

The daily drawdown limit is calculated based on the starting equity of the trading day. Breaching this limit is the number one cause of failure.

Mistake 2: Oversizing Positions During News Releases

Trading around high-impact news releases can lead to massive slippage. Always check if your prop firm bans news trading.

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About the Author

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Author

John Smith

Certified Risk Auditor & Prop Editor

John is a former prop manager who performs independent risk reviews and fact-checks on all evaluation guidelines.

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