How to win tournaments?
Or rather, who are the people who usually win tournaments and what strategies do they use in the process? Each trader has its own special strategy, but there are a few rules that you should follow in order to increase your chances of securing your prize.
As all tournaments are limited in time, each of them is a true race against time and other traders. All the participants want to profit as much as possible in the shortest time. For that exact purpose, traders who typically win in tournaments do not follow standard risk management rules. Instead, they allocate their entire tournament money in a single trade, and repeat this process as many times as possible. In the case of a winning streak, they manage to maximize their profit. Of course, this strategy is not without risk.
Nonetheless, when time is limited and other traders are trying their best to make money faster than anyone else, this is the only strategy that gives you a competitive advantage. Most other strategies just can't keep up. This means that, from time to time, you will run out of money in your tournament account and will have to rebuy — pay for the opportunity to re-enter the same tournament.
To sum up: since most tournaments are free of charge, you might want to try them out and improve your trading and risk management skills. Whenever you are feeling more confident about them, paid tournaments can give you a great chance of winning nice prizes with your strategies.