In this video, we answer the question: What is the Minimum Starting Balance to Enter the 2020 Trading Cup?
As the trading week draws in to a close, we have to draw attention to the incredible returns being made from Zhen Wang.
As you can see from the leaderboard screenshot, Zhen Wang is currently sitting on a return of $1,514%.
What is unique about Zhen Wang’s trading, is that he has not closed any positions as yet.
As it appears, his trading style is more about holding a trending position, and potentially adding to the winning position as the trend develops.
There is not doubt that Gold has been one of the best trending instruments in July.
The old saying among traders is ‘The trend is your friend until it bends at the end.’
There are several tricks to picking trending markets which include maximising the winning trade, which include:
· Finding a trending market
· Knowing how to add to a winning position as the trend unfolds
· Trailing a stop loss that isn’t so close that it cuts your position off in a small whipsaw
· Training a stop that allows you to capture a good portion of the successful trend
· Knowing when to exit the position after all the above conditions are met
Trading trends is often considered one of the best ways to trade the market.
It was originally popularised by The Turtle traders, which was started by a man named Richard Dennis.
They traded the futures markets using trend based trading systems, with a unique way of adding to winning positions that was based on how far the position moved in their favour, and then sitting.
Curtis Faith is one of the original Turtle Traders, and has one of the most popular books on trading trends. You might like to add it to your library.
· Trend following
· Range bound
While there is no right or wrong way to trade, the best method is finding the style and timeframe that suits your personality type.
Getting back to our leader Zhen Wang, it is clear that Zhen has a style that suits his personality type and more importantly, his trading timeframe.
Congratulations on the incredible returns you have generated in a short space of time, using a buy and hold strategy.
Are you ready to join the next Stage? Click here to register an account.
Ashley Jessen is the author of CFDs Made Simple and Head of Marketing at ACY Securities. He has been in the financial services industry since the year 2000 and worked for some of the leading companies in the CFD, Forex and Online Trading space.