Hello friends and colleagues! Today we’ll talk about how to win in the traders’ contest. Many merchants try not to miss a single competition. Especially when it comes to free contests on demo accounts. After all, it is at such contests that you can get a good prize. The best contestants are awarded cash prizes. It can be either real money or bonus funds that you can trade with. Real money can be withdrawn immediately and without any restrictions. If bonus funds are won, then you can trade on them. You cannot withdraw bonuses immediately. But the profit obtained when trading on bonuses can be withdrawn. Although there are times when bonuses can be withdrawn, but after the volume has been traded.
More contests – more profit?
Many newbies think so. They try to participate in all the events available to them at once. There are not so many applicants in contests where you need to trade with your own funds. But contests on demo accounts are always filled with participants. You don’t need to invest your money, but you can earn prize money. And there are different contests. One competition can last a month, another competition only a few days or a week. Participation in such events is non-binding. Everyone hopes to be lucky. The only thing that a trader loses by participating in such competitions is his time. So people try, as they think, to use their time rationally. The more contests are held at the same time, the more efficiently time is used and the more chances of winning.
How difficult is it to win?
Many contests can be won purely by chance. Especially if the competition is short-lived. Here, the one who took a great risk from the very beginning and broke away from his competitors can win. In this case, it is not skill that wins at all, but rather luck. But if the speculators’ tournament lasts a week, then those who do not know how to trade have less chances of winning. Every successful competitor’s deal closes the gap. And each of its own deal, if it is with an outrageous risk, may become the last in this competition. Of course, it all depends on the conditions of the competition. If you are evaluating the largest volume of transactions carried out within a specified time, this is one thing. And if the largest account balance is a completely different matter. Trading skill contests are the third thing. In any case, each of the participants can win the competition.
What is the practical use of winning?
As mentioned above, speculators try to simultaneously participate in different events. This does not lead to anything good. Seemingly rational use of your time is just complacency. Diffusing attention to multiple accounts, especially if the conditions of the game are very different, the merchant reduces the efficiency of the work. Mistakes are often made and wrong trading decisions are made. And the fact that the merchant does not lose anything is also self-deception. He is wasting his time, and it is priceless. Someone says that trading practice is being developed. And this is also self-deception. Since participation in competitions implies work with prohibitive risks. All for the sake of winning and getting a prize. But this has nothing to do with normal trading. The received prize can disappear just as quickly if you do not follow the rules of money management. Experienced traders try not to participate in any contests.
June 23, 2021