We have partnered with FxStreet.com and Edgewonk is now an official media partner for the new 2017 Trader of the Year Demo Contest (only for non-US residents) starting on November 19th. You have the chance to win $5,000, $3.000 or $1.000 and also one of the 3 Edgewonk lifetime licenses we are offering.
In this article, I want to share the 5 most important tips and tricks that can help you rank high in the trading contest and have a shot at one of the top placements.
1. Be selective – only the best trades
It’s a fine line between trading too much and not getting enough trades during a trading contest. The period for the trading contest is restricted and you need to make sure to get into trades. At the same time, you have to limit your downside and many traders will fail because they over trade.
Even though you might think you don’t have a lot of time, stay calm. Wait for the best setups and avoid jumping in just because you feel like you have to trade. We’ll explore other options to get into more trades shortly.
2. Follow all the markets
A good way to get exposed to more good trades is by following more markets than you usually would.
Do not just follow one or two Forex pairs, or just the Forex majors. Instead, also take a look at the other offered pairs, minors and exotics. Again, do not over trade and stay very selective when choosing good trades, but by following more markets, your chances of finding great trades increase.
3. Go big when winning
Winning a trading contest is only possible if you maximize your winners. Most traders cut their winners too early and let losses run too long. This common problem will make it impossible to win a trading competition.
When you catch a good trade, let it run or even think about adding into the trade and scale into a bigger position.
4. Understand when you are wrong
This ties in to the previous point. You need to cut losses as fast as possible and you have to accept that your trade idea didn’t work out.
Don’t make the mistake of adding to a loss and hoping that price will turn around. You will end up using up your margin and then you’re out.
Cut losses, move on and wait for the next setup – it will come.
5. Drop to lower timeframes
To get exposed to more trading opportunities, you can also move to the lower timeframes. Whereas I do not recommend scalping, going to a 1H, 30min or maybe even 15 minute chart can be an option if you are used to the higher timeframes normally.
But if you decide to drop to a lower timeframe, be extra selective and only trade if you really see an exceptional setup. Volatility and whipsaw can be extreme on the lower timeframes too.
And that’s it. Now you are ready to take a shot at winning the 2017 Trader of the Year Demo Contest.
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