So, you want to join a Forex trading competition?
Whether you are looking for the thrill of competition to spice up your boring routine or simply want to learn more about the markets, trading competitions are indeed a great idea to get into.
Before you do that however, it’s important that you make some necessary preparations. You want to do better than blowing up your account trying to win the cash prize. Just because you’ll be using a demo account doesn’t mean you should trade recklessly. And whether you win or not, this will reinforce just why doing that is never a good idea when trading with a real account.
Here are a few things you should consider before joining a trading competition. These should make it easier for you to keep your preparation simple, organized and keep you sane!
Secure Your Spot in A Trading Competition
Many Forex brokers offer trading competitions and you’ll want to choose one that would give you an ample amount of time before the competition begins. This will depend on your level of experience and the effectiveness of the trading plan you intend to use. Some traders are able to prepare in just a few weeks; while others take months.
Signing up for a trading competition should be pretty straightforward. If you do not have a trading account, you will need to open one with the broker holding the trading contest and deposit a minimum of $50 in order to receive your trading credits which you’ll use throughout the competition. Also, be sure to familiarize yourself with all the terms and conditions of the contest.
Develop Your Trading Plan
After taking note of the date and reserving your spot, the next thing to do is develop and test your trading plan. This is a critical factor in refining your trading approach. It will guide you in making the right, logical decisions while analyzing the market as well as help you avoid becoming an emotional trader.
Practice, practice, practice
After developing your trading plan, it is time to test it in a real-market condition. Here is where you should take advantage of demo accounts. Don’t mistake these as only for beginners who are learning Forex trading for the first time. Demo accounts are also an excellent ground for seasoned traders to assess the effectiveness of their plan before using it in a real account.
Along the way, you may find the need to tweak your plan from time to time. Well, nothing is wrong with this, as long as you are improving your trading plan and not throwing away money and thus certainly objective, you are on the right path.
Take Care of Yourself
As a Forex trader, your biggest asset is your mind and body. If you get sick or feel cranky, miserable or just not up to par, this can badly affect your trading decisions and thus lose your trades.
So before the competition, give yourself the advantage of good health. Keep a healthy diet, get enough rest and exercise. Additionally, be sure to take breaks at least once an hour throughout the day. These things will not only keep you in good shape before the competition but also avoid the damaging effects of a sedentary lifestyle.
So there you have it folks. Nothing beats a good preparation and practice when it comes to Forex trading. Follow these tips and you’ll surely get the most out of a trading competition, win or lose.
HY Markets is going to launch its first demo trading competition on October 1, 2012. Get a chance to win up to $3,000 (US) in trading credits. For more details on the rules and how to join, please visit http://www2.hymarkets.com/event/contest/english/index.html