Well i do agree that index trading is no suitable in forex trading contest however it opened by FXCM to anyone. So everyone have rights to trade. It do come with high risk as well as you can't gamble correctly every time...
I think the main issue is that the majority of contest participants were (mis)led to believe that this was a forex trading contest. Indexes are not forex. Commodities are not forex. Gold/silver are considered forex, though IMO I think they should be separate. Come July 15th you won't be able to leverage them in the U.S.
There is a volatility difference between trading indexes and currencies-- with the indexes you have more access to information (since the world is primarily stock-oriented)....you can then max out your positions, hold them between an hour (sometimes less) and a couple days, and rake in upwards tens of thousands of dollars ($66K for this person).
Currencies on the other hand, require more strategy. (And before you disagree, I traded stocks for 3 years prior to moving to forex.) Unlike indexes, you're not making decisions based on a number of companies and their valuations-- you are choosing based on an ENTIRE economy! Yeah, you can still 'gamble' but to an extent you are limited by your skill and money management. In this contest we are limited to 1:50 leverage. And with a starting balance of $50,000 you can at the MAXIMUM buy/sell 25 standard lots (though you would quickly hit a Margin Call due to fluctuations). Even maxed out and price already moving in your favor, that's only $250/pip......so in order to reach the cool $66K you made on ITA40 in 1 day, the price would have to move 260+ pips in your favor. Some people get 'lucky' with a huge forex move (though daily ATR for any given currency is usually less than 200), or they may sit on it for days, but hardly the same 'gambling'-like behavior you participate in with the indexes for this competition.
I have nothing against people trading indexes and the likes, but I was under the impression that everyone would be trading forex and forex only. That would be a level playing field, because after all-- everyone who joins Myfxbook is here for Forex, and if you google FXCM it says Forex Currency Trading. I bet you 95% of the people here rarely, if ever, trade indexes in real life. Questions went unanswered and the rules were not clarified up front. I had hopes that with the restricted leverage and balance, we would see more REAL strategy....because with those boundaries it doesn't matter how good a gambler you are. The leverage is so low it discourages fantasy casino for the most part. Go look at every past contest-- all the winners gambled their way to the top and were aided by ridiculously large leverage (1:500!). And it makes me gag because people treat the winners as if they have some sort of alpha omega trading system, when in reality it was recklessness that is entirely unrealistic to real world scenarios. Yes, demo trading is really just a 'game,' but the purpose of trading is to simulate real world conditions and scenarios....something this contest has failed to do.
We need someone to step up with a forex contest (with established rules) that will actually require skill to win and not just luck. Quite frankly I don't care about this competition anymore because I no longer see it as such. I just see it as whoever holds and prays the longest and puts all their chips on the right square. The playing field is no longer even.
Don't get me wrong-- I'm not whining or complaining, I am just voicing frustration with the whole setup and disappointment that this wasn't as forex-centered as advertised. I will congratulate whoever wins this thing, because gambling or not, it is difficult. And more than likely the person who wins needs the money more than I do.
My goal now is to see how fast I can get my balance to zero so I can bow out 😁 (I suck at trading indexes, obviously)
In the meantime, I will focus on making REAL money in the REAL world 😉
maybe if you just sit your equity out,you may win the contest with what you have now,you have made your point and i quite agree with you that this should be strictly a forex contest,but i am still glad with the 1 to 50 leverage..it kind of brings sanity to the competition,unlike other contest where traders where trading 1000 lots and creating a deceptive and 'rise and fall' scenarios utterly scaring new traders.But whatever works i guess..its a fair contest and i wish all contenders Godspeed be you a forex trader,commodity or index trader
I am a Newbie! Came here to contest just to feel 'the emotion of forex trading' before I start it in real .. start confusing when those with up 100% gain coming with something that is not a forex .. douch! so I start to look on what they have done and do by myself .. jumping up start from 9% to 50% *Yikes*
I agree on 'the rules were not clarified up front'
The rule is very simple. Who ever has the highest profit shall be declared the winner. We should not criticise FXCM about the rules and the rules had already been established. Besides, FXCM would disable indices if it is not included in the rules. If we cannot accept that we cant trade like the others the way they trade, we should be honest on ourselves the we don't fit in this game. I'd rather enjoy the game than having a pain in complaining that others don't play the game fairly.
I didn't know that it was possible to gain more movement trading indexes. I also didn't know when I started the contest that all those non forex markets could be used. Or that the margin requirement was 100 percent or more. Although, I think the leverage requirements were a good thing, to keep people trading wisely more than crazy lucky gambling. I just didn't adapt to them fast enough. Nor am I complaining, some broker has to do it, so thanks to FXCM for putting themselves out there, makes me more interested in their actual service, because I was never interested in them until the contest prompted me to check out what they have to offer. Take note, brokers, free advertising, and I tend to associate myfxbook with market transparency, so brokers allowing contests on their platform, are contributing to transparency, i think. Even though I may have no chance at winning, thats not the point. the point is, the only contest is with yourself. Incentives to contests are, that I have something more to gain/lose than nothing, like regular demo. And if my contest results' are any indicator, I am not psychologically nor strategically ready to trade live money. But this is why I practice, and why I continue even though it seems impossible sometimes (honestly I can not seem to call a good trade this whole contest!). so thanks everybody for all the free education I get around here. I like this community. You guys rock. Good Luck to the winners, looks like you have to keep your winnings at FXCM until you either make a certain amount of trades, or lose it back to them.
go with the flow; just be on the right end of the wave
Pecunia non olet. The call was: Trading championship. I think not me the only one who has learned something new today. So it already worth it. anyway it is FXCM, a spreadbroker, not ECN. Always take it with a pinch of salt