Learning From Trading Contests

With competition in forex increasing day-by-day, futures commission merchants (FCMs) and the accompanying Introducing Brokers (IBs) are fast dealing out prizes and incentives to any new clients walking in. Perhaps the most widespread incentive is that of the monetary bonus, with some firms offering more than $ 250 for a new account. The firm might also offer to pay for part of the tuition if the client is interested in taking up one of the courses that it offers on trading in forex. Recently, forex contests are being offered where traders get to trade simulated accounts and winners get awarded cash prizes and opportunities to trade real money.

This is like when you would come home with a toaster from the bank just because you opened a Certificate of Deposit with them. Is this the destiny of the retail market of forex then? A firm that wants to beat the competition with a few incentives to prospective clients and trading game winners might be doing the right thing, but it should also understand that the real competition is not in other firms but in the hearts of the traders themselves.

Each morning, traders in forex try to pit their trading intuitions against the market’s inherent random nature and pray that winning trades will show up. Yet, how would it be if these daily battles were suddenly changed into a series of contests? Initially there would be the phase of simulation, wherein the trader would test-run the skill and plans to be used in the real thing later.

The simulation period will then give way to a mini account phase where trades will be done with little amounts of real money. Finally, there would be a trading competition with big lots. At this level the adrenaline starts flowing when each pip can result in a win or loss of $ 10.00. It most surely adds up for accounts of any size. A forex trading competition that is based on reality should encompass the above phases and there should be tasks at each stage.

These games with simulated accounts can even come up with numerous prizes for different kinds of excellence instead of adhering to their ongoing arrangement. How about a prize for the trader who achieves the highest average pip per winning trade throughout a period of time? On a similar note, an award can be announced to the participant who maintains the lowest average pips per losing trade.

So too, if a participant manages to obtain more than 10 wins at a stretch that has value of more than 10 pips each, a prize could be given him. This would find those people who deliver wins constantly. There could be money for the winners, or even golden chances to trade proprietary capital.

Now there is no point in waiting for FCMs or IBs to come announce superb contests. There is no problem in simply turning your trades into a competition game. You can make this happen by recording your trade targets and then achieving them. To win as a forex trader you have to have the following on your list, without even thinking of the type of account, real, mini or demo, you have.

These are: a win-loss proportion of 60% in 25 round turns, win-loss proportion of 60% within 50 round turns, seven winner trades at a stretch, seven winner trades over a 15 pip average gain, or three 50 pip trades that won within one week. Losing runs should not go beyond three losses and monthly drawdowns should not exceed more than 20%. You also should try to sustain profits from 50 trades in a single run with a maximum risk of just 2% per equity per trade.

Catch hold of the economics press releases that come out every day at 8:30 a.m.EST and select four currency pairs to trade in for three days and generate dividends. Although trading contests continue to be viewed as marketing utilities they can provide ways to measure trading skills. Consistency and discipline are the two things that a trader should always keep in mind and strive to improve. To quantify your growth as a trader, you must set certain yardsticks.

Obtain further advice on send money overseas and the subject of foreign exchange.Thank you for reading about wire transfer and foreign exchange.

The post Learning From Trading Contests appeared first on Forex Success Traders.

from WordPress http://ift.tt/1N87OrX

via IFTTT