By Kelly Price
Here we have enclosed 3 simple Forex trading tips which if you apply them, can help you supercharge your profits so here they are...
1. Learn the 80 -20 Rule
The 80 - 20 rule is used in many areas of life to show reward to effort. In business for example it's frequently seen that 20 percent of a companies clients produce 80 percent of its revenue. In Forex Trading when the rule is applied - its 20 percent of your trades will provide the bulk of your profits.
It's a fact that most Forex Traders trade too much, they are impatient and simply want to trade and take low odds trades and lose.
A trader I know trades about once a month and makes triple digit annual gains!
In forex trading the big high odds trades don't come around every day and you need to be patient and wait for them. In Forex Trading, you don't get rewarded for effort you get rewarded for being right and that's - it.
So cut your trading frequency and you will spend less time on your Forex trading strategy and make more money.
2. Up Your Risk per Trade
How often do you see the statement - only risk 2% of your equity per trade?
A lot and its fine if you have a large account but if you are a small retail investor trading $1,000 that's $20.00!
You will simply not be able to have your stop far enough away to be outside normal volatility and will lose. If you want to win at Forex trading you need to take a calculated risk at the right time, to give you the chance of a big reward and have your stop far enough back, not to be hit by random volatility.
It's a fact most traders try so hard to restrict risk they actually create it.
Risk 10 - 20% of your equity - if you are waiting for high odds trades and risk meaningful amounts, you can realize a big profit. This is not being rash; it's taking a risk at the right time and risking enough to make a meaningful gain.
3. Don't Diversify
Its common wisdom - but again on a small Forex account is not a good idea.
If you have a good high odds trade why dilute its potential profit with a trade for the sake of it?
Small investors should be hitting one high odds trade, with as much as they can and focusing on it.
Be Patient Trade High Odds Trades and Hit them Hard!
The above is a simple way to make more Forex profits and actually reduces the time you spend on your Forex Trading while at the same time increasing your potential rewards, from this exciting and lucrative business.
