A Short View Of The Simulated Trading Competitions Of Forex

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. The most frequently used trick is the money trap, with firms giving out more than $250 for an account opening. Most firms also offer trading courses, so some of them also end up offering rebates on the course fee for new, and interested, clients. A recent fashion is to give the winner of trading games, where trades are done from virtual accounts, cash awards and chances to trade real cash. To read other foreign exchange articles make sure to visit exchange rate calculator.

You are reminded of the times when one could open a Certificate of Deposit in a bank and come home with a TV or a toaster to boot. Has retail done this to the forex environment? 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. Still, if this daily war in trading were to be transformed into a chain of competitions, what would it be like? First there would be the simulation phase, where the trader tests skills and strategies that would be used in real trading.

The simulation phase will then lead to a mini-account period where the trading will be carried out in small values of real money. Finally, there'd be a trading game having real great giveaways. Now you are in the real game and you stand to win $10.00 with every pip, or lose it and with the increase in excitement, your adrenaline starts to push. This adds up for any value account. A forex trading competition that is based on reality should encompass the above phases and there should be tasks at each stage. Thank you for reading about currency convert and foreign exchange.

The present design notwithstanding, there could be many types of awards for the participants of these competitions. There can even be an award for highest average pip per winning trade. The participant who has, say for example, lowest average pips per losing trade can also be given a prize.

Again, say if someone got wins of more than 10 pips that are more than 10 in a row then there can be a prize for that. This contest then would search for consistent traders. There can be many types of prizes for instance, a winner can be made to trade in proprietary capital and some others can be given cash prizes.

But the forex trader need not wait for an FCM or IB to offer a contest. There is no issue if you simply view your daily trades as a contest job. This can be done by anyone by first stating the trading objectives and then going about attaining them. Any forex trader, whether in a demo, mini, or real account, can become a winner by accomplishing the following.

This might mean winning 7 trades in a single run, or getting 7 trades that have a mean value of 15 pips, or making a win that has value of 50 pips in a week, or a 60% win to loss ratio with only 25 or 50 round turns. A month's drawdown must be within 20% and a stretch of consecutive losses should not go more than three losses. He can trade 50 consecutive trades with a 2% per equity per trade risk while maintaining profitability.

After selecting four different currency pairs from the financial releases that come out daily at 8:30 a.m.EST, trade with them for three days and see if you can make profits. To see how good you are at trading, a trading contest is useful, even though it is mainly used for marketing purposes. Your primary aims should be to change your tactics always so that you are getting better in trading discipline and in giving consistent wins. You should always have standards of development as a trader.