This Forex trading tip is very simple and you can apply it to your Forex trading strategy and make bigger profits immediately. Most traders would do well to study it, so let’s look at the 80-20 rule in more detail…
The 80-20 rule is used in many areas of life and in business states that – a company will typically generate 80% of its sales and profits, from just 20% of its clients and in Forex trading, the 80-20 rule is all about concentrating on the 20% “that matters” so concentrate on high odds trades only and cut back trading frequency.
It’s a fact most traders trade to much, they scalp, day trade or think that the more they trade, the more they will potentially make in profits but over trading and taking low odds trades, simply leads to equity wipe out. I know traders who trade no more than twice a month on average but make triple digit annual gains!
These traders are not interested in trading for the sake of trading, they only want to trade when they see an opportunity to trade the really high odds trades which can provide huge profits. If you think about the 80-20 rule, it makes perfect sense in terms of its logic. In Forex trading you don’t get rewarded for making more effort or trading more, you are judged only on your profits per trade and that’s it.
So cut back your trading frequency and you will then enjoy bigger profit possible, with less risk and already better, you will use less time on your trading and will have more time to enjoy your profits.