Forex : Winnings, Consistency And Discipline
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. One common incentive is the monetary bonus some firms even offer up to $250 for the opening of 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. A recent trend is that simulated forex trading games are organized and the winner finally gets cash prizes or gets a chance to trade with real money. Obtain further advice on transfer money and the subject of foreign exchange.
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. Has retail done this to the forex environment? For those firms who are seeking that edge over the competition, the incentives might work just fine, however what they do not realize that their rivals are not in those silly trading games but among the traders and their clients themselves.
The main goal being the winning trades, every day sees the forex traders fight it out with the market in a battle with their trading instinct. However, what would it resemble if these wars that took place daily were turned into competitions that had the same thing? First we have the trial testing period in which the trader will try out the plans and the strategies s/he intends to use in the real trading.
A mini account will be used to trade in small amounts, although with real money, after this period of simulation. Finally, there’sd be a trading game having real great giveaways. This is when the real fun starts with each pip beholding the key to a $10.00 win or a similar loss. This sum up for all account sizes. Trading competitions should have the different periods incorporated in them as well as a few challenges at every stage as the game progresses. For more information on foreign exchange check out sending money .
There can even be many awards for various kinds of excellence in these trading contests. What if there is a prize for the highest average pip per winning trade? How about a prize for the trader who has the lowest average pips per losing trade?
There should also be prizes for consecutive win’s say if a contestant gets more than 10 in a row and each has more than 10 pips on it. Such a competition would seek out trading consistency. The winners can be dealt out money or sometimes given the chance for trading proprietary capital.
But the trader must not wait till an FCM or an IB comes around and announces a contest. There is nothing in the way of turning your own trading into a set of challenges that offers rewards. The contest begins the moment you list out your trade objectives and then go after them doggedly. All traders, whether with a real account, or mini or demo versions, can start winning by realizing the following objectives.
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. He can limit a drawdown to less than 20% in any one month period and limit a series of losses to three consecutive trades. There must be profits generated from 50 trades in one cycle that have a risk estimation of 2% per equity per trade.
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 day’s with profits. Apart from being a marketing tool, a trading contest can also serve to gauge your skills as a trader. You have to forever rethink your plans so as to keep on improving on the twin causes of discipline and reliability. Forex traders are advised to set certain yardsticks to measure their advancement.