For Bigger Forex Profits Instantly, Learn the 80 - 20 Rule!
I have been a broker and taught Forex and seen thousands of traders trade. Nearly all make a fatal mistake and they would be well advised to learn the 80 - 20 rule. Let's take a look at it...
The 80 - 20 rule in business for example, states the following:
20% of a company's clients will be responsible for 80% of the company's profits.
In Forex trading, the 80 - 20 rule simply means, 80% of your profits will come from just 20% of your trades. therefore by cutting back your trading frequency, you can enjoy greater profitability, with less effort. Most traders trade too much and believe the following myths which cause them to over trade and lose.
1. Day Trading is a great way to Trade
The logic goes that you can make small regular profits trading frequently but this is not true. All you do in day trading, is take low odds trades volatility as volatility. If volatility is random, you can't get the odds on your side and that means an eventual loss of equity.
2. You need to Be in the Market so You don't Miss a Move
You can see the big moves shaping up from the sidelines and this increases your risk reward, as you will only enter the market when the odds are in your favour.
3. The More Effort You Make the More Money You Make
Many traders simply want to trade all the time, because they believe that the harder they work the more money they will make however in Forex trading this is simply not true. You get your reward, for being right with your trading signal. You cannot force the market to give you profits and you should only trade, when the right conditions present themselves.
The Way to Win
Forget trading frequently and be patient and focus on trading high odds trades only.
It's pretty obvious from any Forex chart that currency trends last a long time. Many trends last for weeks, months or even years. Wait for an opportunity to get into these big trends and hold them.
I know traders who trade just once or twice a month and yet still make 100% annual gains gains. Their interested in hitting high odds set ups and holding them. These traders are not working hard, they are patient and only trade when the highs trades present themselves.
More Money, Less Stress and Time Spent on Trading
The 80 - 20 rule lets you focus on just the high odds trades which increases overall profits, decreases risk and means you spend less time on your trading and that's a great way to trade!
About the Author:
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info and more on making Bigger Forex Profits visit our website at: http://www.learncurrencytradingonline.com
