I wanted financial freedom, and I was determined to acquire it. I decided I was going to do it trading stocks or currencies. The problem was that after one year in the hospital, and a lot of medical expenses, I didn’t have the initial capital needed for my venture.
I made some research and found out that many brokers let people open free demo accounts to help them learn how to trade, and also to help them gain a general sense of how the markets behave. I also found that these financial institutions organized regular contests for the people who traded on those demo accounts.
The prizes for winning one of those competitions ranged from real money accounts, to cash prizes, tablets and smart phones. So, the only thing I needed to do was to win one of them, and obtain the funds I needed to start trading for real.
I know what you are thinking, easily said than done! Well, it’s easier than most people believe.
You see, most people treat their demo accounts as real accounts. After all they are trying to learn how to make money in real life. On the other hand, I saw these accounts as a game, a contest I needed to win.
On a real account you have to think long-term, you diversify and you minimize risks. On a demo account you need to make as much money as possible, on the shortest amount of time. So, you concentrate your resources, and take the risks you are not supposed to take with real money.
The game plan…
There is a concept in the stock, and currency market, called a gap. It’s a pattern that is formed when the open price is higher, or lower, than the close price of the previous session. As a general rule, these gaps tend to be filled. In other words, the price moves back to the original pre-gap level.
If, for example, you are trading a demo Forex account the only thing you need to do is wait for the markets to open on Sunday, and watch for a gap in the opening price of one of the major pairs. As soon as you find an opportunity you open all the lots that you can in the opposite direction of the gap.
Depending on the size of the gap, and the spread of the pair you are trading, you will be able to make a profit of 50%, 100% or higher. Repeat this strategy as long as the contest lasts and you will be one of those guys in the prize list.