Topic: How to approach a trading competition?? - page 3. (Read 952 times)

There's only two possible reasons on why people would be joining up on a competition;
Mainly about making or earning money, or they would really be loving to join up competitions and proving out their skills or worth.

How to approach on a trading competition then it would really be just that simply be sticking into your own plans and trying out to do it just like an ordinary day.
If you would really be that keeping into your mind that you are in a competition then this is something that will really be making you distracted. When you are joining up on a competition then
make yourself on each trade to be efficient as possible or making those plans to be on work.

Just dont simply panic or will really be doing things in a rush because this is where you would really be that ending up on having those stirred up kind of mind or emotions
on which this will really be the main reason on disruptting you on doing trades efficiently. So better be wary about these things so that you do able to avoid it out
as much as you could and trade up well just like you get used to.

And this must be the main reason on why we want to join a trading competition but I do not know, maybe for some, their main reason is to test their skills if they are still starting and to know if they have already improved a lot. For those who are not new in trading anymore, this was like a test to tell if they still got it. Rewards are only like a bonus for them and it might not really matter if in case they did not win or if it turns out that the competition is bogus. Apart from time, you also said resources and this could mean money, right? But that was true because many trading competitions I see are not free. The rush on these types of competitions are even higher and are more rewarding once we win on them.

When I participate in a trading contest, I do not take any additional actions other than registration. I just keep trading, as I do every day, except in cases where the terms of the competition require trading certain pairs of coins.

The rewards involve is indeed important if you want to push thru your participation in any trading competition. Because you need to assess if it is worth your time and resources. Because when you talk about trading volume, aside from the initial funds, you need your skills and time dedicated to this event. Otherwise, don't join half-heartedly as you will only waste your effort on this.

You can assess yourself if you are really prepared for this by asking yourself -
> do you have the initial funds for this - ready to dispose in case of losses?
> do you have the knowledge about the coins you are trading with?
> do you have the time and patience to do your trading activities, beyond what you planned of?
> do you have the minimum skills to execute a trade?
> are you emotionally prepared for whatever the outcome will be on this activity?

Big or small then it wont really be that much of a concern, the positive thing on joining up with competitions is that you do make yourself that put up in a challenge on which we know that if you are really that in a competition then you would really be having that kind of feeling of being motivated because you are really that aiming on trying out to be the best. Somehow if you are really that joining on something then it cant really be denied that you would really be coming after for the prize pool or whatever the benefit that you could get into.I've been able to join up some competitions but i do find that there are really that tons of traders who are really that far better than me, but i dont see this to be that a discouragement but rather it do really make it as an inspiration to do better or something which is far more that on what you could actually do now.
If you are someone who do really get easily frustrate or disappoints when you do lose into other people then joining up competitions isnt for you but if you are really that wanting to have that kind of improvement
then its not really that bad on having this kind of consideration on doing things.

Anytime you see a trading competition, the first thing you need to check is the reward if it's big or it's small because you will only burn your time to increase trading volume only to be given a chicken change woryth of reward. If the reward is a big one, you may have a good share even though people are much and whales comes into play but don't forget to maximize your profits while trading, don't make losses thinking the reward is enough to compensate your loss.

Make sure that you have trading experience before you start it in the first place, you will only make losses because the whales know the boundaries of upper limit and lower limit of price they can use to make their profits and minimize losses but you that don't have the experience, you will only be falling into their traps of price manipulation and it wouldn't be good to be honest, so prioritize experience before you venture into any competition with whales.

Since you are not a beginner in trading, you do not need additional skills to participate in trader competitions. A lot of such free contests with a large prize fund are held by the Bybit exchange and to participate in the competition, it is enough only to register on the exchange.

Trading competition right now don't really feel like a competition, most of exchanges just offered pooled reward with minimum trading volume to be eligible and that's it, so I don't think we really need to raises 24h trading volume with that much amount of money, even leveraged trade will be sufficient.
It's just that, most of trading competition just feels like a waste of time, since reward is pooled anyway, we probably just gonna get pennies out of these event, I just never participated into these competition anymore, because the centralized exchange have ulterior motive of attracting new users and don't really reward based on performance.

Approaching a trading competition requires strategy, preparation, and discipline. Here’s a step-by-step guide to give you the best chance of success:

### 1.   Understand the Rules 
   -   Read the Competition Guidelines  : Each competition has specific rules, such as the duration, initial capital, assets you can trade, and trading restrictions (e.g., leverage limits).
   -   Scoring Metrics  : Know whether winners are decided by percentage gains, absolute profit, or risk-adjusted returns (like Sharpe ratio).

### 2.   Define Your Strategy 
   -   Risk Management  : Avoid risking too much capital on a single trade. A common rule is to risk only 1-2% of your capital per trade.
   -   Choose a Trading Style  : Decide whether you’ll day trade, swing trade, or combine both. Day trading may be necessary in short competitions, while longer ones might allow for swing or position trades.
   -   Leverage  : If the competition allows leverage, use it wisely. Higher leverage increases both potential profits and risk of large losses.

### 3.   Select the Right Assets 
   -   Focus on High Volatility  : To maximize gains in a short time, consider assets with high volatility, like small-cap stocks or altcoins in a crypto competition.
   -   Liquidity Considerations  : Ensure the assets you trade have high enough liquidity to enter and exit positions without slippage.

### 4.   Practice Beforehand 
   -   Simulated Trading  : If possible, practice using demo accounts before the competition begins to test your strategies in real market conditions.
   -   Backtesting  : Backtest your strategies on historical data to identify how well they perform under different market conditions.

### 5.   Stay Disciplined 
   -   Stick to Your Plan  : Once the competition starts, avoid emotional trading. Stick to your strategy and adjust only when there’s a strong rationale, not based on fear or greed.
   -   Don’t Chase Losses  : If you lose money, avoid over-leveraging or making hasty trades to recover. This often leads to bigger losses.

### 6.   Track Your Performance 
   -   Monitor Regularly  : Keep an eye on your profit and loss (P&L), position sizes, and the leaderboard (if available). Tracking performance helps you adjust strategies when needed.
   -   Analyze Your Trades  : After each trade, reflect on what worked and what didn’t. Continuous improvement is key.

### 7.   Be Aware of Market News 
   -   Stay Informed  : Economic reports, earnings announcements, and news events can significantly impact prices. React to news quickly, but avoid trading solely based on speculation.

### 8.   Risk-Taking for Competitive Edge 
   -   Calculated Aggression  : If you fall behind in rankings, taking some calculated risks toward the end of the competition may help you catch up. This could involve increasing position sizes or leveraging more.

### 9. Psychological Preparation
   -Stay Calm: Trading competitions can be intense. Maintaining emotional balance, especially during volatile periods, is crucial to making rational decisions.
   -Accept the Outcome: Focus on following your process rather than obsessing over winning. Results will follow if your strategy is sound.

### 10. Learn from Other Participants
   - Analyze the Winners: After the competition, study the winning strategies and see what you can incorporate into your own approach.

### Summary of Key Factors:
   - Risk Management: Balance risk and reward.
   - Market Focus: Trade high-volatility assets.
   - Disciplined Execution: Stick to your plan and avoid emotional decisions.
   -Aggression in the Final Phase: Consider calculated risks toward the end of the competition if needed.

By following these steps, you’ll maximize your chances of performing well in a trading competition, no matter the market.

If you have deep pockets then you could trade as much as you want and if you know what you are doing then you could make some money. But, people with not that much money will end up losing money and not making that much, so we shouldn't really be worried about it, I think it wouldn't be fair and it would not give you any good results neither.

I personally believe that we should be looking into this getting a greater result, and because of that ı think we shouldn't really be focusing on getting any different profit then what we can on a trading run. Just make sure that you work within your budget and if you try to get out of that then you are going to end up with a lot of loss and won't be helping you at all in the end neither.

To be more profitable by trading you must analyze the market. Because only through market analysis you can achieve a lot in this regard. One more thing about trading is that you can never be in a hurry and you have to make a deliberate decision. Many people find that while they gain early in the trade, they become overconfident which causes them losses at the end of the day.  So you must be strategic and wait for the right time. When you trade you must start trading with a plan and you must start this plan in advance.

I have some experienced in trading competition although it's happen in the recent like in this month, i participated in DOGS coin trading competition in the bybit exchange, but here a requirement was like minimum 500$ worth of trading and more trading volume will give more coins, i will suggest don't start trade with big amount, because if which coin is huge dump then you can not recover it easily.

Trading competition is not suggested for those who are not excellent in trade because he might cause them to lose all of their funds. It is better to trade on your own and learn without competing with others. Trading is a risky activity that can cause you to lose control and overstake in order to increase profits. If you are a professional and believe in yourself, you can participate and potentially profit, but it is a high risk that can result in both wins and losses.

Trading on your own is preferable because you will have a better understanding of the market and can find mentors who can assist you when you don't understand something so that he can guide you through and gradually increase your profits until you are perfect and confident in yourself that you can do anything and be profitable. So, in my opinion, I prefer to trade my own without competing with anyone, just focus on yourself because if you are looking for people trade, you will be worried about why they are getting more than you and you don't know what challenges they face before they are perfect and be making huge profits. is not about competition is all about patient and learning and developing your self on it.

If you want my candid advise, I will suggest you stay away from trading competitions because it turns you into a reckless trader. In trading competitions, you will definitely over leverage and most times get margin call. The few times you will be lucky to win such over leveraged trades, you will start feeling like a champion and will be tempted to apply this in your personal account and you will get hurt in the end. If you want to go far in trading, manage your capital even though it may be small, you can compound and grow gradually.

Most trading competitions held by major exchanges rank users by the size of their total trades. If that is the case in a competition you are willing to join, you should see if you have good enough capital to compete with other users because only being profitable wouldn't help in that case. However, if the users in a competition are ranked based on their profitability which means that whoever has been more profitable in the week or month will rank higher, then you can have a chance no matter how much your capital is.

This is one of the most basic things you need to look for when you are joining a trading competition. Other than that, you surely need to see how good you are with the market and whether you are getting profits constantly or not because constant profits are the key to winning such competition.

Some platforms would rank users itself in weekly or monthly competitions based on their trading activities if they are doing good.

Most of the competitions are based on the trading volume of the user. So be aware of the exchange fees. The fees that you will be paying each trade might kill any small profits you are making. Sometimes you might end up paying more in fees than you could win even if you are in the top of the leaderboard. The competitions are actually useful for high volume traders as those rewards help them minimize the fees spent on each trade. If you still want to join the trading competitions, be careful with coins that are extremely volatile as they can mess you up real quick without you even noticing. You might end up making loss that even the top prizes cant cover.

Sometimes there are people fall by having wrong expectation on their trades and they only think about consistency is important for them to win always on their trade. But in terms of there's competition involve those who have huge volume most likely have huge chance to win.

And if they only trade small amounts or can't afford to become a whale then they should focus to  create more better trading decision and much better for them not to spend time on something that not necessary for them to pay attention. I usually dispose immediately once I already see or get a good profit already and never plan to hold altcoins since for me its super risky to decide to do that. But in bitcoin its different story since what I did to this coin is to hodl it for long term.

You can only win on trading competition if you huge volume of capital since most of the contest mechanics revolves only on trading volume as main criteria to determine winners. There’s a lot whales that compete with tournaments that has million of dollar capital which is impossible to beat as regular trader regardless of your strategy.

My strategy before when I’m still active on trading is to buy and sell quickly a less volatile token using high leverage to amass volume quickly with minimal losses.

But now you can use the exchange bot to do grid trading for you.

You are saying that luck is more needed? But I think it was actually the skills and strategies are the two's that are needed the most and luck should only play a minor role here. Feeling lucky can only be a feeling and it does not mean that we are really lucky when we are now trading. Also, if we are not feeling lucky we must still try our luck but like I said earlier, trading must mostly rely on skills and strategies, so if we believe that we have them at a better level we must not have an excuse to not do it.

Trading is fast-paced and if patience can matter here, that will only be to continue trying until we are now back on the greens again because some days we can also be a loser. Like it or not, we need to take risks because this is the only way to profit and how can we know if we are now good in trading or lucky if we don't try?

But if we keep on making the same lose result, we may need to pause for a while and analyse if where we have gone wrong and what can we do in order to improve it. Before leverage trading, it must be the normal way of trading or also called as spot trading first. So, if we are not good at leverage or we jump on it quickly, we actually need to downgrade for a while and not leverage evenly.

When you are knowledgeable about the trading competition and you are capable to use any amount of money to trade in the trading competition, I believe you will be recognize among other traders in that competition because the amount of money you are using will make them to recognize you in the competition. Don't forget to go with faith in that competition, because once you conclude in your mind that you will be successful in that trading competition which is faith, you will surely become successful with your skills and knowledge you are going to apply in the competition.
And, it can also make you to lose what you have made before because the trading competition required knowledge which you must have before thinking of joining the competition, because what you are going to see in that competition is what you have experienced or experience from other traders in the past that will make you to earn reasonable profit.