As we’ve already discussed, trading contests have several benefits to them. Some of them are very obvious, while others are subtle. Here, we will discuss some of the benefits that come along with entering a trading contest, and give you some things to think about if you’re still on the fence if this is something that would be beneficial at all to you.
Trading contests promote competitionThis might seem pretty obvious, but the whole point of a contest is to bring out the best in everyone so that you can be pushed to your next level. Trading on your own is meant to be profitable, but oftentimes it takes the rush of competition to get you out of your rut and push your forward to a new height. There’s nothing wrong with this kind of push. It’s why golfers compete in tournaments, it’s why chefs go on TV and make meals under the clock for an impartial judge, it’s why gymnasts spend countless hours practicing alone so that they can beat their competition by a fraction of a point. Competition of any sort drives people to take something that they are already skilled at and get better at it. If you are in a funk when it comes to your own trading, then this could be something that can shake new life into what you do.
Trading contests help us learn
Just like a contest can help you to have a better focus on what you do, a contest can force you to go out and learn new ideas, new skills, better money management techniques. These are all integral parts of your trading repertoire, and by giving yourself more of a reason to extend your learning and start addressing weaknesses in your methods, you can get a better edge over the competition. Maybe what you are doing now is good enough. But if you have settled into this sort of complacency, then a contest can help you to reevaluate what you’re doing and find new ways to improve, not just for the contest, but beyond that into your everyday routine.
Trading contests push us out of our comfort zones
If you’re anything like most people, you have a comfort zone. As a short term trader, you are probably more comfortable with risk than most people, but you still have a comfort zone, and odds are you haven’t been pushed outside of it in a very long time. A contest is designed to do just that. Let’s say that you need to earn just 2 percent more in order to finish in the money in your contest, but you have done everything you can think of to get there, but with no luck. In a normal situation, you would see that you’ve already made a large profit and relax. But now you need just that little shove forward, and you are not immediately sure how to get there. Do you settle for nothing or do you start thinking creatively? Of course you’re going to think of anything you can to make just that tiny 2 percent more so you can take home a cash prize. Contests keep us moving forward, and if we didn’t have that driving us, settling is much easier to do.
Trading contests are refreshing
Sometimes people don’t think about this, but a trading contest gives new life to what you already do. Sitting in front of a computer screen executing trade after trade gets boring after a while. A contest breathes some new life into your trading, giving it fresh energy and zip. It makes something that can get boring extremely exciting again.