“For someone new to prop firms, view risk as if it’s a real account. Start at a level you’re comfortable with.”
Joseph G., from the USA, has successfully passed our $260K and $20K buying power evaluations. He has scaled both accounts and received multiple payouts since joining us in April 2024.
In this interview, he shares his Trade The Pool experience as a funded trader, offering valuable lessons on risk management and penny stocks. Don’t miss his valuable tips, especially those going through the evaluation phase.
Could you be Trade The Pool’s next funded trader?
Watch Joseph’s Interview
Joseph’s 260K Evaluation
Despite his successes, Joseph is like any other trader. He faces challenges with inconsistency and discipline. His edge comes from actively learning from mistakes, particularly around risk management.
His advice centers on treating prop firm accounts as if it’s your money on the line—even as a funded trader, focusing on niche strategies, and employing a systematic approach to risk scaling.
Joseph’s Trading Style
His approach centers on short-selling penny stocks, particularly those with low float, which he identifies through technical analysis. He looks for stocks that have moved up significantly in pre-market or intraday, waiting for signs of supply coming in.
His key technical indicators include: MACD, VWAP and support and resistance levels.
More About Joseph
- Advocates for implementing the R system in trading, which helps traders know precisely how much they’re risking per trade
- For him, buying the dip or selling the top has lower success rate but higher reward. While
using the VWAP after the move already occurred has a higher success rate, but lower reward - He learned from Brian Lee’s ‘freezing’ method for capping risk at different account levels
Joseph’s Tips
- Why Penny stocks are attractive: “They are often diluted companies with typically down trending chart history. It’s easier to find where supply will come in, especially if the stock is up 40-50% in a day. By looking at daily levels, institutional ownership, and SEC filings, you can predict potential selling points. Once the tape confirms, you can scale into larger positions.”
- Going long on penny stocks: “Everyone’s trying to short them. The sentiment cycle can greatly influence volatility. I look at supply and demand, it’s either going to fade or spike hard, then possibly fade. I use basic technical analysis and look for factors in my favor. If the stock holds key levels with sufficient volume and there’s sentiment but no recent big gainers, it may have potential for a big move.”
- On B tier entries and A-tier trades: “B-tier entries for penny stocks are later in the day, looking for bounces, A tier trades are shorting into the supply and scaling into the position. By the time that’s worked, you’re looking for a potential add into VWAP or a previous support level acting as resistance. For me, those are B tier entries, the risk to reward isn’t great, but the chances of it working are relatively high.”
Funded Trader, Closing Thoughts
Joseph is a multiple-funded trader with numerous payouts. Make sure to absorb his trading methodology, his approach to managing different account sizes, technical analysis, and philosophy on risk management.
He emphasizes understanding one’s risk tolerance and adapting strategies accordingly, which is how he became more profitably consistent.
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