Do you shy away from the trading contests because you think there is no way you can actually win? Or is it because you don’t believe in yourself? Guess what, Alexander Gerchik believes in you. And not just simply believes. He knows for a fact that a journey of thousand miles begins with a single step. The best way to put your skills to the test is by taking action and not doubting or contemplating about it indefinitely.
With this in mind, we have compiled a list of Gerchik’s top tips on how to take your trading to the next level.
Decide on the strategy you are going to use and work out a trading scenario. In the course of trading, you can make relevant adjustments to the trading plan and see how well it performs. This is one of the reasons why it makes sense to participate in the contest.
Stick to the trading plan when making trades.
Create a file and name it ‘My Perfect Trade’. In it, list all of the aspects that according to you define a perfect trade.
Place stop-loss orders and keep an eye on the ATR value and not the number of pips. Why is it important to check the ATR? If it is 50 pips, and your stop-loss order is 20 pips, your odds of making money are close to zero.
Use levels from the daily charts. If it’s not enough, you can also utilize weekly charts. Do not mix the figures from different timeframes. It’s better to switch to a smaller time frame and check how well these levels work. If it takes too long to find a certain level, it’s probably best not to mark it in the chart.
Keep track of the market signals. There are tons of ways to identify the price movement direction. Choose the one you are most comfortable with and stick to it.
Make sure to use mirror levels. They are critical because there’s a high likelihood that there will be a price correction or the price will change the trend direction after having bounced from the mirror level. It is safer to enter the position when the price bounces from the mirror level. When this is the case, the stop-loss order is placed on the other side of the level. It should be rather small in size. In contrast, the take profit should be quite large when there is a price bounce from the mirror level.
Do not try making all of the profit in one day. Trade consistently throughout the entire contest.
Make sure to carefully read the terms and conditions of the contest to avoid any misunderstanding and inaccuracy.