Trading IQ game concepts and FAQ

Tips on how to play for greater profits

Trading IQ game is 100% FREE  with great prizes from MultiCharts the game sponsors

Technical analysis studies only PRICE.  Its the the only thing sure to be real. 

The Technical trading IQ game will teach you the art of technical analysis in its purest form. You may find you have a gift that you were not aware of. Using this trading game will help you learn to trade if you are a beginner, improve your skills if you have some experience and if you are one of the best you can use your talent to win prizes.

There are two basic methods of analysing markets for trading.

1. Fundamental analysis

2. Technical analysis

Fundamental analysis is the study of company reports and accounts, using economic data and broker reports to select buying or selling points. The problem with this approach is that the timing is generally arbitrary as it depends when the trader reads the reports or accounts as to when he places a trade. Another trader may view the same "great accounts" a month later and buy for the same reason at double to price! Clearly this approach is flawed.

Technical analysis involves the use of charts to choose buy and sell points, and the purpose of the Technical trading game is to practice this science in order to improve your skills. The purest technicians use 100% technical analysis and do not even read the news from the individual companies or crop reports or economic data etc.

Frequently the market will sell off on good news or rise on bad news which can lead to deepening confusion. Companies often issue statements which are worded in such a way as to be incomprehensible to the reader, this is often to hide the real facts. Accounting fraud and massaged profit estimates are commonplace.

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• Learn how to place your stop loss a safe distance away from "the noise" of the market. The best place to put it would be somewhere where you believe the trend has really changed direction. This avoids over trading and changing your mind too often, which can lead to trader error.

• Learn how much capital to risk depending on these factors

1. Your level of expertise

2. You confidence in the current trade

3. The volatility of the market

4. The distance of your stop loss from the price.

5. The clarity of the trend ( not noisy price action )

• Expert traders know the importance of risk control.

• Pick you spots carefully.

• The Market price action over the different games will vary dramatically. If the price action does not appeal to you then wait for favourable movement before placing a trade.

• Understand what you can control and what you cant.

1. You are in control of your stop loss placement

2. You are in control of equity percent risked

3. You are not in control of the market price.

4. No matter how much you shout at the screen the price will goes its own way.

• Find your own style

1. Trading is often a very personal process and we all have our preferences.

2. Keep practising to find your style which suits your personality and generates high profit.

• Trade what you see, not what you think or feel.

• If you don't bet you cant win, if you lose all your money you cant bet!

• Practice for fun a few times until you learn how to use the game

Trading IQ game FAQ

The formula and detailed explanation for lake ratio is shown here. 

A rating above 1000 means you are likely to be a winning trader in reality and below 1000 means you may not make it.

Expert traders can attain and IQ of  2,000+ however the average trader who will most likely lose regularly will have an IQ of 800-1200.  

See IQ definitions table above

No, the speed settings on the game can be made as fast or slow as you like. The Trading IQ rating is not affected by speed

 The speed adjustment is just to help people feel comfortable to play at their own pace.

No, this game attempts to be as real as possible. You would not be able to pause the London stock exchange either.  If something happens, it is best to exit your trade and wait until you are free to focus again. Do not close the browser in mid session or your IQ will be penalized.

Yes you can enter as many times as you like.

Persistence is rewarded in actual trading, therefore this is replicated in the trading game. You can keep trying until you are the best in the world.

They have to complete at least 15 sessions before the report is visible to other members via the World and Weekly tables. Before 15 sessions are completed it is only the logged in played that can view their report.

If you lost all your equity, you will be rated zero in the competitions just as a fund manager would lose all credibility if he wiped out his account. The competitions are designed to be realistic. Sorry but this an educational tool as well as a game.

Shareholders of Enron also lost a 100% of their capital when it went bust as did investors in Bernie Madoff.

It happens sometimes and you need to be aware of this. If you risked 100% of your account on one trade and did not place a stop loss then you will eventually get wiped out once sooner or later. Its realism, and you learned this lesson very cheaply compared to some..

Anyone can enter the world championship contest. Ages 0 to infinity.

Yes he can play, but if you want him to win the prizes you can help him sign up and then add the pay pal account email address of you the parent or guardian.

If he wins the World championship you can ask him to call me when he leaves school and maybe I will give a job trading some of my accounts.

Very often the stop loss order does not get filled at the exact price in real trading either, this is a factor known as slippage and is an important part of trading. The Trading IQ game is designed to be as realistic to actual trading as possible.

Your IQ will be computed as if you lost 75% of your equity, this is done to prevent people who are losing heavily from exiting the game and not losing points. Also, it teaches one to be responsible, as walking away from an open trade is rather dangerous in reality.