Forex Trading - Double Your Profit Potential With This Simple Rule!

Forex Trading - Double Your Profit Potential With This Simple Rule!

by Monica Hendrix

If you are not making as much money as you would like from your forex trading or want to get a great tip before you start, learn this simple rule and make it part of your forex trading strategy for bigger profits...

The rule is the 80 / 20 rule and it applies in many areas of life and that includes forex trading. This simple rule states that 80% of your income comes from 20% of your efforts.

Its used in business for example, where 20 % of clients very often give 80% of the income - so how does it apply to forex trading?

Simple - cut your trading frequency to high odds trades only!

Many traders take to many trading signals - but there is no correlation between how much you trade and your profits. Your judged on the accuracy of your trading signal and that's it.

The fact is the big forex trends and high odds trades don't come around that often.

For example, I know traders who trade less than 12 times a year yet make over 100% annualized gains.

These guys are not looking for 20 0r 30 pips there after 1,000s.

FACT

The big profits come from the big trends, that last weeks, months or years and if you want to make money, focus on these not the low odds trades.

If you consider how many people day trade and try forex scalping you will understand what I mean.

These are lots of low odds trades and day traders and scalpers lose. They try hard and lose, sad but true. On the other hand the patient trader who hits high odds trades spends less time on his or her trading - but makes a lot of money.

Never confuse how frequently you trade with how much profit you will make.

Take high odds trades only, show patient and you will have higher profits, with less stress and spend less time on your trading.

Long term trend following is the way to make money don't trade often but aim to make a lot when you do, understand this and you can enjoy currency trading success.