Happy Monday, Lark Traders! This is Lark Digest. If you think your Monday morning coffee is strong, wait until you see this week’s economic lineup!

On today’s menu:

• Are Prop Firms Here To Stay? 🤔

• Why This Is A Huge Week For The Markets 👀 

The Year of Prop Firm Drama 🎭

2024 has been nothing short of a soap opera for prop firms. We’ve seen big names crumble, payouts denied, and traders left in the lurch. If this year were an Olympic event, it would be the 100m hurdles—except the hurdles keep moving and nobody told you where the finish line is.

If you’ve been living under a rock, here’s a 7-second reminder.

The Big Blowups:

• Some well-known prop firms have gone belly up, leaving traders scrambling.

• Influencer-backed firms have been popping up like mushrooms after rain, only to disappear just as quickly.

• Twitter is ablaze with traders sharing horror stories of denied payouts and shifting goalposts.

It’s no wonder traders are feeling jittery. The fear is real, and it’s justified. But let’s take a step back and put things in context.

Addressing the Fears 🧠

1. The Prop Industry is Like Crypto

Just like the early days of the crypto industry, the prop trading world is new, young, and fast-paced. This leads to volatility and a lot of growing pains. But remember, the strongest players, like Bitcoin in the crypto world, aren’t going anywhere. The firms that are built on solid foundations will weather the storm.

2. Use the Right Filters

If you’re picking prop firms based on cheap prices or super easy challenges, oh boy you’re setting yourself up for disappointment. It’s like picking stocks based solely on hype (been there)— It’s a surefire way to get burned. Look for firms with transparency and a proven track record. It’s that simple.

3. Diversify Your Bets

It’s not about going all-in on just ONE firm. It’s about stacking as much funding as you can across multiple reputable companies. This strategy not only mitigates risk but also maximizes your potential upside. Think of it like building a diversified portfolio to balance risk and reward.

Why Prop Firms Are Still #1 🥇 

1. Unmatched Opportunity

For a mere $500, you can trade on a $100,000 account and pocket 80% of the gains. There’s absolutely no other opportunity out there that matches this for traders. It’s like getting a golden ticket to the trading world, where you can scale up without risking your life savings.

2. Focus on Success Stories

Amidst all the fear and uncertainty, traders—both offline and online—are making life-changing amounts of money. Focus on these success stories rather than the fear.

3. Legitimate Firms Exist

There are still many legitimate prop firms out there that prioritize transparency and have a solid track record to prove it. They’re like the blue-chip stocks of the prop trading world—reliable and rewarding.

Final Thoughts 🌟

Are props here to stay? You bet they are.

Despite the rollercoaster of 2024, prop firms still offer the best opportunities for traders. The fears are real, but manageable with the right approach.

So let’s grab those pips and pass certificates this week.

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Outlook for the Week: Key Events Traders Need to Watch 📅

As always, here at Lark we’re your go-to source for the week’s most important market-moving events. Buckle up, because this week is packed with crucial data releases and policy announcements that could shake up the markets. Here’s what you need to keep your eyes on:

1. FOMC Monetary Policy Announcement - Wednesday, July 31 📢

Why it matters: The Federal Reserve’s monetary policy decisions are always a big deal. This week, the Fed is expected to keep rates unchanged, but all eyes will be on the signals they send about future rate cuts.

What to watch for: Pay attention to the Fed’s language regarding inflation and the labour market. Core inflation is at its lowest since 2021. If things continue to look peachy, the Fed might signal that the first-rate cut could come as early as September.

Impact on traders: Stay alert for any dovish hints, as this could boost equities and pressure the dollar. A more hawkish tone might do the opposite. As always, volatility around FOMC announcements can create significant trading opportunities.

2. Bank of England Monetary Policy Announcement - Thursday, August 1 💹

Why it matters: The Bank of England (BoE) has been facing inflation pressures and economic uncertainties. Traders are keen to see how the BoE will navigate these challenges.

What to watch for: Analysts are divided on whether the BoE will announce a rate cut now or wait until September. The economic data is mixed, with services inflation remaining high. Any hint of a dovish shift could signal future rate cuts.

Impact on traders: The pound could see significant moves based on the BoE’s stance. Watch for reactions in UK equities and GBP pairs. This is mega important for those trading GBP or UK stocks.

3. US Non-Farm Employment Change and Unemployment Rate - Friday, August 2 💼

Why it matters: This is often the most volatile event that can massively shake the market. The NFP report is the most closely watched indicator of the US labour market’s health.

What to watch for: The consensus is for 177K new jobs, down from the previous 206K. The unemployment rate is expected to hold steady at 4.1%. However, any significant deviation could have major implications. Rising unemployment or weaker job growth could stoke recession fears.

Impact on traders: Strong NFP numbers could boost the dollar and US equities, while weak numbers might do the opposite. Be ready for some action!

TLDR:

• FOMC Announcement: Look for hints of future rate cuts.

• BoE Decision: Watch for surprise announcements and hints at future policy moves.

• US NFP Report: Be prepared for significant market moves if the data deviates from the expectations.

Catch you in the markets,
Mr. Lark

☕️ Pre-Market Fuel

1. An insane 1-year track record. This is the type of influencer we love at Lark!

2. Trump’s speech at the Bitcoin Conference timestamped. Nobody is bullish enough.

3. Elon Musk posted this hilarious parody ad for Kamala Harris.

🍪 Digestible Memes

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