5 Tips to Win Forex Trading Contests
Winning forex trading contests is not impossible if you understand the important tips. What are the tips for winning the forex trading contest?
If you are a competitive spirit trader and interested in getting a prize for winning a tournament, forex trading contests are the most appropriate medium to realize that interest.
However, being the best in a forex trading contest is not the same way as winning other championships. Because the winner is usually determined from the contestant who is the most profitable or even collects the most balance at the end of the period, what is needed here is not only speed but also a measured strategy to ensure your victory.
What exactly are the main tips needed to win a forex trading contest? The following five guidelines will provide interesting inspiration to prepare you for participating in forex trading contests:
1. Gather Past Experience
Forex trading contests are divided into 2 types: demo and live contests. In demo contests, there is no real risk of loss as the competition is conducted on the demo platform, and the balance is provided virtually by the contest organizer. Whereas in live contests, there is a real risk to consider because you have to use your funds as trading capital.
Live contests are usually popular because they can offer a much more lucrative range of prizes than demo contests. However, don’t ever try to participate in live forex trading contests if you don’t have experience in demo competitions, especially if you’re still a novice trader.
Ordinary live trading is already risky because you use your funds, especially live trading contests that require you to compete with other participants. If other participants have more experience and dare to use large capital, then your chances of winning the forex trading contest are getting thinner.
So before competing in live forex trading contests, increase your trading experience and participate in demo contests. In addition to further ensuring the chances of winning, these tips are also useful for protecting your funds from the risk of big losses.
2. Use Mainstream Trading Strategies
This tip is one of the unwritten mandatory rules in forex trading contests. The contest platform is no longer where you experiment with strategy, but rather compete with other contestants to win the championship. So of course, you have to be more selective in choosing “weapons”. Do not let you jump into the arena of the race without preparation and a mature trading strategy.
To find a reliable trading strategy, you can first identify your trading style and find out which technique suits your characteristics. After that, test the trading strategy on a demo account, either with price data in the past (backtest) or in the future (forward test).
3. Carefully Choose Forex Trading Contests
Not just a trading strategy, the type of forex trading contest itself also needs to be chosen carefully if you don’t want to wallow in the abyss of defeat. Apart from being divided by platform, forex trading contests can also be held in various forms. Some are suitable for certain trading strategies, some are based on the length of the period.
Different forex trading contests certainly have different tricks. If you join a forex scalping contest, for example, it certainly won’t be suitable for those of you who rely on a swing trading strategy. In this case, you should not force yourself to participate in the forex trading contest, and look for other competitions that are more accommodating to your trading strategy.
One more thing that is important to note is the contest period. In long-term tournaments, you are strongly advised not to rush after big profits and focus first on how to survive. This kind of forex trading contest requires more endurance, patience, and skill at taking entry points than speed. But if you take part in a short-term forex trading contest, then don’t hesitate to immediately target the nearest opportunity.
4. Understand And Follow The Rules
An important tip that must always be applied and is non-negotiable is to understand and follow the rules of the contest organizer. If you take part in a broker’s forex trading contest, then obey the terms and conditions imposed by the broker. Breaking the rules will not only affect your chances of winning, but also more stringent actions such as disqualification and disqualification of prizes.
In forex trading contests, one of the policy points that clients often violate is “one participant one account”. Those with an ambition to increase their chances of winning try to create as many accounts as possible on different IP addresses. That is why, many brokers warn participants not to violate this policy, stressing that fraudulent actions can always be detected and will result in immediate disqualification.
5. Control Trading Emotions As Much As Possible
Ordinary forex trading that is not pressed for time alone can be stressful, especially contest activities that have a deadline. Not to mention, the psychological pressure to be the best is very risky to trigger traders to make fatal mistakes in trading.
If you have met the trader criteria in the first tip, this probably won’t be a problem. From this, it can be concluded that the best solution to protect yourself from the dangers of trading emotions is to accumulate as much experience as possible. If you are a trader who has tasted the bittersweetness of live trading, you can face an uncertain market situation with more controlled emotions.
What’s even better is if it comes with the experience of competing in demo contests. Even though it is virtual, the demo contest has an atmosphere that is not much different from the competitive atmosphere in live competitions.
When You’re Ready, Practice Your Skills
Do you already have sufficient experience and reliable trading strategies? Ready to follow the rules of the broker regarding forex trading contests and be able to control emotions well? If yes, then it’s time for you to participate in forex trading contests with prizes and get various benefits. You can test your skills in any live broker contest that suits your strategy.