The forex trading tip enclosed is all about increasing your
profitability and there logical, easy to apply and work. So here are
your 3 trading tips, to increase the profitability of your forex trading
strategy.
1. Learn The 80 - 20 Rule
It's a fact that in
many areas of business work etc that 80% of your profits come from 20%
of your efforts and it's also true in forex trading.
Most traders
over trade and trade for the sake of trading, they think that if their
not trading they will miss a move or the more they trade the better and
this is not true. What you need to do is:
Cut you're trading
dramatically and only focus on the high odds set ups. I know traders who
trade less than once a month but earn triple digit profits. They know
trading frequency has nothing to do with forex trading success and you
should learn this to.
2. Don't Diversify
Diversification is
seen as a way to cut risk - that's only true if you diversify into good
high odds trades, but most traders think they should trade a spread of
positions, take marginal trades but all that does is dilute profit
potential.
Most forex trader's accounts are so small they simply
can't diversify and have meaningful gains. No you need to concentrate on
high odds trades and then use the next tip to milk them for all their
worth.
3. Load up The Risk Reward
How many times do you read
that you should only risk 2% per trade well for a small forex account
of say $5,000 you wont make much doing that that's $100!
No you
need to risk up to 20% on the high odds set ups - if you don't take a
risk, you won't make big gains, its as simple as that.
You are not
being rash, you are taking a calculated risk based upon the odds and
like a good card player, you are going to load up your trade.
The
tips above are simple and mean that you have to see forex trading for
what it is a high risk - high return odds based game, where you need to
be patient, to wait for the right trades and when you see them - hit
them hard.
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