V10 How Prop Firms Actually Make Money | The Business Model Traders Miss

Most conversations about prop firms are emotional. This video is not. Prop firms are often described as either villains or saviors. Neither description is accurate, and both misunderstand the business model. This video explains how prop firms actually make money, without hype, anger, or conspiracy thinking. Not from a trader’s perspective. From a business perspective. Because until you understand the incentives of the system you are trading inside, you will always be reacting emotionally, instead of operating intentionally. What this video is about This video explains: Why evaluation fees are not the primary revenue driver How prop firms monetize behavior under constraints Why most traders fail challenges even with profitable systems Why drawdown rules exist and what they are designed to reveal How misunderstanding the business model leads to frustration and burnout This is not a video about: Which prop firm is “best” How to pass quickly How to game the rules Discounts, rankings, or affiliate links Those conversations come later — if at all. The uncomfortable truth Prop firms are not built to test your strategy. They are built to test you. Specifically: How you behave under pressure How you react to drawdown How you manage boredom How you respond when nothing is happening How you handle small losses without interference Most traders don’t fail because their edge is bad. They fail because: They overtrade They revenge trade They violate rules under stress They abandon process when emotionally uncomfortable Prop firms make money because human behavior is predictable under pressure. Not because traders are stupid, but because they are human. Why understanding this matters If you believe: Prop firms are “out to get you” The rules are unfair Passing means you are skilled and failing means you are not Then every challenge will feel personal. And once trading becomes personal, execution collapses. Understanding the business model does something important: It removes emotional charge. When the fog clears, you can finally ask the correct question: “How do I operate calmly and professionally inside this structure?” That is the question this channel is about. Who this video is for This video is for: Traders who are tired of emotional cycles Traders who want to treat prop firms as environments, not enemies Traders who care more about longevity than screenshots Traders who want to build a calm, repeatable process If you’re looking for shortcuts, hype, or motivation, this channel will feel boring. That’s intentional. Where this fits in the series This is Video 10 in a larger body of work documenting: Trading psychology Capital efficiency Execution under constraints And the transition from retail thinking to operator thinking The next videos will cover: How to use prop firms as capital accelerators Why rules matter more than setups Why getting funded is a behavioral problem, not a technical one But none of that works unless the foundation is clear. This video is that foundation. If this perspective resonates: Watch the next video in sequence Don’t rush Don’t binge Let the ideas settle This is not content. It’s conditioning.