October’s $10,000 Challenge Winner
DailyFX.com -
FXCM and DailyFX are happy to announce the October winners for our $10,000 Monthly Challenge. Hassan C. has been declared the victor with a 533% return for the month. Hassan’s success was followed by Anthony D. (435%), Alvaro L. (307%), John C. (224%) and Claro P. (212%) These traders competed and topped a field of tens of thousands of participants to become October’s winners. Congratulations to all our winners and participants!
In order to gain some insight into last month’s contest, I was able to interview Anthony D. our second place winner. I was able to find out that Anthony began trading in 2009 and most recently started trading Forex in 2012 at the suggestion of his girlfriend—they have been actively trading together since. Anthony does work a full time job, and sees trading mainly as a hobby. Due to time constraints with work, he actively takes advantage of the 24 hour nature of the market. In fact, this market availability is one of the reasons he has transitioned to strictly trading Forex.
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Anthony attributes his success, in trading his way to second place in October’s Monthly Challenge, to using sound technical analysis coupled with maintaining a positive attitude. Getting a clear direction of the market is important for day traders, and finding the trend remains Anthony’s first step in trading before considering any possible market entries. To accomplish this, Anthony uses a form of multiple time frame analysis by monitoring three different charts. Only after he confirm the trend on a 1 hour, 30 minute and 15 minute graph does he consider placing any trades.
For the month of October, Anthony’s preference was to analyze and trade the EUR/USD. Once he established the trend he began looking for trades using the stochastics indicator. The stochastics indicator is a classic oscillator found within the FXCM Marketscope 2.0 charting software, and is normally used for its quick crossover signals and overbought and oversold levels. Anthony’s style of trading would be classified as retracement trading as he highlighted using stochastics to enter pullbacks in the trend. While Anthony strictly trades a live account, traders looking to begin day trading with technical indicators can practice their techniques using a Free Forex Demo with FXCM. This way, you can practice setting up a series of charts and indicators while tracking the market in real time.
The last and arguably most important step in a trading plan is risk management—for Anthony this process is twofold. First, as a day trader Anthony feels that it is always important to have a plan to exit a losing position. Specifically, he continues to monitor stochastics throughout his trading to determine if the current market momentum is beginning to move against him. When his positions are not working out, Anthony mentioned that he has no reservations about immediately closing a trade using a market order. Second, Anthony suggests that keeping a positive frame of mind when trading is highly important. Not only does this psychological step help traders focus on their next position, it also can help keep them from compounding mistakes made by dwelling on, or remaining in, one losing trade.
Learn more about risk management and the trader’s number one mistake HERE
Now that Anthony has given us some insight into his day to day trading plan, I lastly wanted to know his expectations and outlook for the rest of November. While, Anthony is still actively trading the EUR/USD he has yet to establish a forecasted direction for the pair. Always the technician, Anthony is not concerned with upcoming economic announcements or expectations for interest rates. Instead he hinted that he will continue monitoring the charts to stay on top of the market and the Euros latest trend!
What is the FXCM$10,000 Monthly Challenge?
FXCM and DailyFX would like to thank Anthony, along with all of our October participants, for taking part in our October $10,000 Monthly Challenge. If you are unfamiliar with the contest, the $10,000 Monthly Challenge is a currency trading contest hosted by FXCM, which gives away $10,000 in total cash prizes every month: $5,000 for the trader with the highest trading return, $2,500 to second place, $1,500 goes to third place, $750 for fourth, and finally a $250 prize for fifth place. For more information on the$10,000 Monthly Challenge and to read the rules for entry and how to win, click here.
Risk Warning:Trading foreign exchange on margin carries a high risk to your capital. You may win or lose many times your original stake. Only trade with money you can afford to lose. Make sure you fully understand the risks involved and take advice if necessary. Foreign exchange trading may not be suitable for all customers.
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