Forex Trade, Trading Contests, And Winning

As forex becomes more competitive, forex futures commission merchants or FCM and introducing brokers or IB are resorting to offering prizes and incentives to attract customers. There are firms that will give you more than $250 to open your account with them, money being the easiest and simplest way to lure in a client. The other tack is to waive some of the tuition for a course that the firm is offering and the client might be interested in, or give a rebate on it. Sometimes, forex firms also hold trading tournaments where people trade with virtual money and the winner is rewarded with cash prizes and a chance to trade in real life.

You begin to remember the era when you would start a Certificate of Deposit in the bank and would then receive a toaster or a television as an award. Is this the fate of the retail market of forex? Trading game awards and other incentives work just fine in getting new accounts opened and putting the firm a step ahead of the rest, but the firm fails to see that the real rivals are the forex traders, their new clients, themselves.

Every day the forex trader pits his or her trading insight against the market and tries to achieve winning trades. Yet, how would it look like if these regular wars were turned into a sequential range of matches? At the outset there shall be the phase of simulation where traders will get comfortable with their strategies and knacks so that they can use to them to win trades later.

The simulation period will then give way to a mini account phase where trades will be done with little amounts of real money. There will be a tournament of trading with huge stakes to the end. Now, every pip can lead to win or loss of $10.00 and this is what keeps the adrenalin pumping at this level. This adds up for almost anyone with any account. If a trading game is to come close to reality it has to bring in the phases mentioned here and also include special tasks in every period.

The present design notwithstanding, there could be many types of awards for the participants of these competitions. What about giving a prize for the contestant with the highest average pip per winning trade? How would a reward for the lowest average pips per losing trade sound?

For instance, there can be a sub-contest where the participant who has more than 10 sequential wins of more than 10 pips will be the winner. This way, traders who are consistent will be found out. There might be money awards for winners or even chances to trade in proprietary capital for example.

However, as a forex trader, you will see no point in waiting for a contest to be announced. There is no problem in simply turning your trades into a competition game. Anyone can create his own contest by simply listing trading goals, then setting out to achieve them. You might have a demo, mini or a real trading account, but as a forex trader you have to have the following on your list of aims.

There can be 7 trades that give you a mean of more than 50 pips, 7 trades that win at a stretch, 60% wins more than losses with either 25 or 50 round turns, or perhaps 3 trades worth more than 50 pips in seven days. The drawdown of a month should not surpass 20% and the longest run of losses in a row should be no more than three. You should get benefits from trading at 2% risk of per equity per trade and by making 50 such successive trades.

After going through at least ten different economic releases that are out at 8:30 a.m.EST, select four pairs of currency to trade and in and extract profits from them. To see how good you are at trading, a trading contest is useful, even though it is mainly used for marketing purposes. You have to forever rethink your plans so as to keep on improving on the twin causes of discipline and reliability. All forex traders must have some preset benchmarks that mark their progress.

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