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☕️ GM Munchers! This is Pip Munch, the trading newsletter that’s hotter than a coffee that’s been microwaved one too many times and more bullish than the S&P500 this year.

As always, we're bringing the trading fire. 🔥 First up, a deep dive on leveling up to become a funded trader, followed by a market rundown to keep you in the know.

Let’s roll! 🤙 

On today’s menu:

• Why Prop Firms Should Be Your #1 Focus 🤑 

• A New Prop Firm Promotion 🚀 

• Why So Many Traders Fail At Trading XAUUSD 📉 

• Bitcoin Finally Breaks Above $65,000 😏 

Is Trading Even Worth It? 😬 

If you've ever questioned why you’re trading, you're not alone.

Traders sacrifice time, money, and maybe a little sanity along the way.

Sure, some days you’re a chart-reading ninja. Other days… well, it’s like trying to solve a Rubik’s Cube blindfolded.

But what’s the real endgame here? 🤔 

With 90% of traders failing, it’s natural to ask: Is it actually worth the grind?

And how do you know when to quit, if ever?

I’ve been thinking about this a lot, and the root of my answer may surprise you.

It’s Not Just About Making Money - It’s How Much ❌ 

To answer the question, I want you to take a look at this post from a very well-known influencer (we love his transparency at Pip Munch).

That’s a lot of green! When you add everything up, Trader Nick is up 11% year-to-date.

Now, before we go any further, let me just say that this is very impressive.

This is way better than most traders.

And we love Nick’s transparency.

But there’s a problem. ❌ 

While Nick is up 11%, the S&P500 is up 23.5% year-to-date.

That means Nick has missed out on an extra 12.5%.

Ouch. 😬 

This prompted me to ask Nick why he continues to trade the account when he could have made more money with less work by putting the funds into the S&P 500.

We’ll share his answer below, but this got me thinking…

The Secret = Leverage 💪 

Here’s my controversial opinion: Any trader who has achieved similar results to Trader Nick’s this year, while impressive, should have just been the capital into an S&P500 index fund.

They would have made more money with less work.

But I already hear what you’re saying, “Mr.Pip, then when does trading even come in? Why should I even bother?”

Let me tell you where the exception lies.

Leverage. 🔑 

More specifically, prop firm leverage.

Running The Numbers 🏃 

Take Trader 1.

• He’s got $1,000 to trade with.

• He made the same 11% that Trader Nick made this year.

Congratulations, Trader 1! You’ve made $110! 🥳 

But before the party starts, let’s remind Trader 1 that, unfortunately, in today’s economy, that will barely get them a decent meal for two. 😥 

So what’s the solution? 

Do you just give up, quit and admit to your parents or wife that they were right about this whole trading thing?

Of course not! 👎️ 

Let’s take Trader 2.

• He takes the same $1,000 and buys a $200,000 prop firm challenge.

• He passes the challenge and gets funded.

• Like Trader Nick, he makes 11% on the account this year.

His return?

$22,000. Now we’re talking! 🤑 

And here lies the major lesson: Unless you’ve got piles of cash lying around (we’re talking to you, trust fund babies), your best shot at big returns is through prop firms.

So, focus on leverage. Focus on getting funded. With even a small percentage return, you can make a phenomenal amount of money. 🚀 

Oh, and Trader Nick’s answer to my question?

Well, he continues to be one of the most transparent influencers in the space.

It turns out that, in the big picture, he’s been outperforming the S&P500 for almost five years, which is honestly pretty wild. 👏 

🚨A New Prop Firm Promotion! 🚨

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Promo expires October 31st—don’t miss out!

Why So Many Traders Fail At Trading XAUUSD 📉 

XAUUSD (AKA gold) is one of the most popular assets to trade.

With its dramatic price swings and the dream of big profits, it pulls in traders like a supercar revving up on the starting line—it’s thrilling, and it’s powerful.

But without the right handling, it’s a disaster waiting to happen. 💥 

And that’s a problem.

You see, most traders jump into gold with “training wheels” on. They get dazzled by potential gains and forget about risk management.

But trading gold isn’t a joyride; it’s like entering the Tour de France on a tricycle. 🚲️ 

Thankfully, at Pip Munch, we’ve got a secret tool that will be a massive help.

The Secret XAUUSD Weapon 🔐 

Most traders suck at trading XAUUSD because they completely neglect the big picture.

After all, it’s XAUUSD.

You’re NOT just trading gold. ❌ 

You’re also trading the US dollar. 🇺🇲 

And that means there’s a second chart that you need to be paying close attention to.

The DXY.

The DXY is a chart that tracks the value of the US Dollar and is the secret weapon in every great trader’s toolbox.

Here’s how to use it.

The Power of the DXY 💪 

If you leave this email with one lesson, let it be this:

XAUUSD and the US Dollar are inversely correlated. 💡 

• When the Dollar’s flexing, gold tends to shrink. 📉 

• When the Dollar softens, gold usually shines. 📈

That means before taking a trade on XAUUSD, you need to analyze the DXY chart.

Scenario #1

You’re about to take a buy on XAUUSD. For that to work in your favour, you’ll want the DXY to fall.

So, before risking your life savings on the trade, you look at the DXY and see it’s at a resistance level.

That would be a green light and an added confluence for taking the trade. ✅ 

Scenario #2

You’re still looking to take a buy on XAUUSD (I like the bullishness!).

But because you love Pip Munch, you now never take a trade without first looking at the DXY.

And when you do, you see it’s quickly approaching a support level.

Uh-oh!

That would suggest the Dollar might be on the verge of rallying, which would not be good for your gold buy.

So, you decide not to take the trade, and because of your analysis, XAUUSD actually begins to drop. 📉 

You’re welcome. We just saved you money.

Happy Tuesday,
Mr.Pip

TLDR 🧵 

1. Most traders suck at trading XAUUSD because they ignore half the picture.

2. XAUUSD and the US Dollar are inversely correlated.

3. Before taking a trade, look at the DXY chart to support or reject your trade idea.

☕️ Pre-Market Fuel

1. Something weird just happened between these two prop firms… 🥶 

2. China is considering major economic stimulus. Remember, the AUD is used as a proxy for the Chinese Yuan, so some trading opportunities could be coming up. 🇨🇳 

3. Bitcoin seems to finally be breaking above the $65,000 resistance level. 🚀 

🍪 Munchy Memes

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