Forex Trading Salaries
2009
Trading Competitions And What They Can Teach You
Rise in the competition in forex has made the futures commission merchants (FCMs) and the Introducing Brokers (IBs) become active in handing out prizes and attractive incentives to get more people in to their firms. The simplest way is to give away money and many firms do that, announcing more $250 or more to open an account with them. 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. Another recent fashion is to hold trading games where players trade with virtual accounts and the winner gets cash or the opportunity to trade with real cash.
This would be like those days when one would come back from the bank with a television or a toaster with him for a newly opened Certificate of Deposit. What has retail done to the forex? The firms might be alright in getting more and more people to come in and open up accounts with them, because of the incentives, but they must also realize that apart from the trading tournaments the real competition is with the traders themselves. Our foreign exchange article is further discussed at forex money transfer.
The trading instinct of the forex trader is the main tool with which the market is analyzed and fought with every day, all in order to get those winning trades. Yet, what would be the outcome of changing these daily wars into a series of contests formally? First, we will find the simulation phase in which traders test acumen and strategies that will come in handy in the real trades.
After the phase of simulation, the trades would be done with real money from a small account. Finally, there’d be a trading game having real great giveaways. At this stage, the adrenaline begins to flow as each pip might make you win or lose $10.00. It certainly adds up for any size account. Trading contests should ideally have all of the phases included in them and they should also have tests that have to be passed at each level.
These competitions that have virtual accounts should even think of giving out prizes for different kinds of performances instead of sticking to the present design. How about a prize for the trader who achieves the highest average pip per winning trade throughout a period of time? The participant who has, say for example, lowest average pips per losing trade can also be given a prize. Get further information from send money overseas about foreign exchange and more.
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There can even be a smaller sub-contest in which the winner has to have the largest of more than 10 consecutive wins of 10 pips or more. 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.
But the trader should not hang around till an IB or an FCM finally announces a competition. You have no issue in actually making your trades as if it were a competition. You can have your own contest by firstly stating the targets of the trades and then you can go about accomplishing them one after the other. As a forex trader, you have to get hold of the following goals, and this works irrespective of whether you have a real trading account, or a demo version or a mini one.
Within 25 or 50 round turns, you can aim for a win-lose ratio of more than 60%, or you can try to get 7 winning trades in a run, or 7 winner trades with more than 15 pips benefits on average, or even a total of 3 trades that win more than 50 pips in the week. A losing stretch should not go more than three losses and the drawdown of any month should not go beyond 20%. There should be at least 50 successive trades that give you a profit at a risk measure of per equity per trade 2%.
Choose four pairs of currency from ten different financial press releases (these occur roughly at 8:30 a.m.EST) and trade in them for three days, with profits. Besides being a marketing device, a trading competition can easily be used to measure your talent as a forex trader. You have to forever rethink your plans so as to keep on improving on the twin causes of discipline and reliability. Every trader of forex must have some yardstick or the other to measure progress.
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