8 Years to FTMO Funded: Seven-Figure Trader's Journey
Dan Cheung's complete 8-year journey to becoming a seven-figure FTMO funded trader. Discover the 3 breakthroughs that transformed everything: The Compound Effect, Power of Consistency, and Financial Freedom mindset. From 16-hour study sessions to sustainable trading success.
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It took me eight years to get funded with FTMO. Eight years of frustration, failures, breakthroughs, and rebuilding. And this is what I learned.
The Brutal Reality of Funded Trading
Did you know that 90% of traders who start trading fail? That means only a 10% success rate. Now pair that with these funded prop firm statistics:
The Pass Rate Breakdown
Let me break down the FTMO statistics from February 2022. Using a pool of 1,000 traders:
- Phase 1: 31% pass = 310 people out of 1,000
- Phase 2: Only 14% of those 310 pass = 43.4 people
- Out of 1,000 traders, only 43.4 actually pass the challenge = 4.34% pass rate
But waitâit gets worse. Many traders then fail their live account. Let's say 50% to 90% blow it. That means only 10-30 people out of the original 1,000 ever get a withdrawal.
The Scary Truth: You could trade profitably for 11 months straight and lose it all in one day. Or be profitable for one month and lose it all in one day. Trading is abundanceâyou can make whatever you want, but you can also lose whatever you want.
But here's the optimistic view: Even if 90% of traders fail, that still leaves 10% who succeed. If 10 million people try trading worldwide and fail, there's still 1 million profitable, consistent traders. All you need to do is become one of those million.
And I'm here to tell you how.
Years 1-3: The Painful Beginnings
My first three to four years, I was trying everything. When I say "everything," I don't mean strategy-hoppingâI actually stuck to one strategy, which was smart. My main problems were:
- Overtrading - Taking too many setups, forcing trades
- Revenge trading - Chasing losses emotionally
- Lack of clear playbook - No defined process to follow
Looking back, the issue was simple: If you don't have a plan, you can't take action to make your dream a reality.
The Grind
During those three years, I sat there studying charts relentlessly. There wasn't as much information available then as there is nowâwhich is a double-edged sword. Today you have so much information you don't know what's right or wrong. But you also have enough resources to become profitable just by finding the right information.
Back then, there was only Baby Pips and a few forums. I spent hoursâno, 16 to 18 hours some daysâreviewing charts, journaling, understanding market structure, talking with mentors, putting in money, overcoming emotions, losing profits through overtrading.
It was an absolute wild time of emotions. And it affected me deeply.
"The hardest thing to overcome was the frustration. The frustration of wanting to get rich quick. The frustration of being young and hungry, wanting a better life. And I think the most painful thing was doing everything in your powerâor at least thinking you wereâand still not getting results. That's honestly the hardest thing to take away."
That's why I think successful people relate to each other and are kind to one another. They know how tough the journey can be when you're climbing that mountain alone.
Year 4: Breakthrough #1 â The Compound Effect
In my fourth year, something shifted. I discovered a book called The Compound Effect by Darren Hardy.
The book posed this scenario: Would you rather have $1 million today, or a penny that doubles every single day for 30 days?
That penny, doubled over 30 days, would actually equal $5.4 million at the end of those 30 days. The interesting part? The $5 million doesn't come until the last four or five days when the money starts to double up and compound.
Breakthrough #1: The Compound Effect
This hit me hard in trading. I started thinking: I don't need to make $1,000 today. I don't need $10,000 or millions. If I can consistently make $40-$50 a day and be consistent over time, that can compound over a couple years to potentially replace my income.
It won't make me live a lavish lifestyle right away, but at least I can live life on my own terms.
The Goal: 20-40 pips per day. Small, consistent wins that compound.
I took this to heart. My aim became simple: Get 20-30-40 pips a day. Make $40-50 daily. That's it. Just be consistent with the Compound Effect.
Year 5: Breakthrough #2 â The Power of Consistency
The Compound Effect by Darren Hardy, paired with The Power of Consistency by Weldon Long, took my trading to the next level. This is where everything changed.
The next three years I became profitable by using the power of consistency. This mindset reframed everything:
Key Insight: If you accumulate small habits and small daily wins every single day, over time they compound. You'll get bigger wins. Bigger days. They add up.
The Fitness Analogy
Think about getting in shape. If you want to go from fat to fit, you don't transform in one day. It's the consistency of:
- Going to the gym every single day (10 minutes, 20 minutes, an hour)
- Eating the right foods throughout the day
- Clean meals, no saturated fats, no junk food
Over time, the result is good shape because of the process.
The Sports Analogy
Same with basketball, football, or golf. You don't get a perfect swing the first time. Practice makes perfect.
- Showing up every single day
- Doing at least 100 swings on the golf course
- 100 free kicks or dribbles every day
- Free throws, whatever it is
The practice and the process give you the result.
Breakthrough #2: Power of Consistency
The Process Over Results: I realized the most important thing in tradingâand lifeâis practicing good habits on a small, consistent basis over time.
The results will come. You just have to trust the process. Show up daily. Follow your plan. The wins compound.
This is the most important mindset shift in all of trading and actually life in general: Trust the process. The results will follow.
Years 6-8: Breakthrough #3 â Financial Freedom
The third breakthrough came from understanding why I was trading beyond just making money.
I sat down and asked myself: What does financial freedom mean to me?
Becoming the Dad I Never Had
For me, it was simple things like going to watch football games. I was fairly good at sportsâI played football for a few schools, badminton, basketball. But my mom couldn't watch all my games. She came when she could, but she couldn't make it to sports days and other events.
That actually meant a lot to me.
When my children come alongâBlake, for example, who is now hereâI want to be able to spend that time with him. To go to his games. To be there at any given moment. To place them as a priority over my work.
Breakthrough #3: Financial Freedom Mindset
Trading Allows Freedom: I can trade when I want, where I want. Of course there are pros and cons, but I'm willing to take the cons because the pros outweigh them, and it matches my lifestyle.
I'm not chasing a lavish lifestyle. I'm chasing time with my family. The ability to be present. To prioritize what matters most.
What Trading Really Offers
At the end of the day, trading gives you choice:
- You choose when to work
- You can make anything within the realm of abundance - $1,000/day, $10,000/day, $100,000/day, $1 million/day
- It's within your means to make it happen
But here's the con: You have to be consistent. You have to be disciplined. It's one of the hardest jobs out there because it's not about working harderâit's all psychology. It's all you as an individual.
And there's a lot of hate in the industry because so many people fail. They'll put their own failures and roadblocks on you just because they couldn't make it happen.
Don't Listen to Haters: 90% of people who try trading fail. 90% of them will think it's a scam or impossible. But that doesn't mean YOU can't make it happen. Don't let others' failures define your potential.
Why Prop Firms Are a Game-Changer
Here's the beauty of funded trading: For as little as $500 investment, you can get a $100,000 account (granted, 1% risk means it's more like a $10K account, but stillâ$500 to get $10K is phenomenal).
If you trade it properly:
- Make 10% = You get your money back plus more
- You can keep doing challenges forever
- If you do 100K accounts 10 times = $1 million in funded capital for as little as $5,000 investment
Tell me that's not a great idea and a great deal.
But the harsh reality? You're probably not going to pass on the first go. It can cost you a lot more than that. It took me nearly 20-30 challenges to get to where I am now.
It takes time. It takes money. And you need to plan for that reality.
Challenges vs. Live Trading: Key Difference
One discussion I want to address: Challenges versus live trading are psychologically different.
With challenges, I find that you often break your rules a little bit. For example:
- You're at $109,050 on a $100K account
- You only need $950 more to pass
- Sometimes I'll break the rule because "no matter how much I risk, it's still less than 1%âjust to pass this challenge"
That psychological pressure can massively affect you and the way you trade.
My Current Approach: I've stopped doing challenges and only trade live accounts now. It's so much better to just trade your rules, trade your plan, plan your trade, and trade your plan. Take what the market gives you. That's how you're supposed to trade.
It feels good to be back on top of things. Remember: Challenges are very different from live trading. You should have a challenge plan and a separate live trading plan.
The Only Traders Who Fail Are Those Who Give Up
I absolutely love trading. I give my life to it. It's my passion. It's one of the hardest yet most fulfilling jobs out there. When you get the hang of it, you become so fulfilled, so gratefulâyou're just lucky to live the life you live.
It can take you three months, three years, or even ten years to become a profitable trader. But just remember: You have your own journey.
"The only traders that fail are the ones that give up. So just don't stop believing in yourself. Refine. Be humble. Because when you humble yourself, that's when you can learn new things."
Final Thoughts: Don't Just Talk About ItâDo It
I've met a lot of people in lifeâsuccessful and non-successful. I'm sure you have too. But one main thing I want to share:
Don't be the person who just keeps talking about it. Do something about it.
It's okay to talk about dreams and goalsâthat's great. But over a five-year period, I've seen:
- Some people who have gone astronomically to the moon
- People who have stayed the same
- People who have actually gotten worse
That difference comes through taking action, accountability, and self-development.
The Main Message: Go and chase being the person you want to be. It doesn't matter if it's trading, fitness, basketball, danceâwhatever. What would life look like if you went for it and did it every single day?
The 3 Breakthroughs Framework
- The Compound Effect: Small daily wins compound over time
- The Power of Consistency: Process is important; results will come if you trust the process
- Financial Freedom: See the vision and the outcome beyond moneyâwhat does freedom mean to you?
Obviously, trading and financial freedom don't apply to everything in life. But look at the accumulative effect. See the vision. Define the outcome.
No matter where you areâstill in high school, far older than meâthere's always a chance to turn your life around for the better.
"Imagine if what you dreamed for came true." - Dan's Mom
This is dedicated to my mum. I love you. Thank you for believing in me. This journeyâthese eight yearsâthey were all worth it.