I have been a Forex broker, taught Forex and been in contact with several thousand traders. The enclosed tip is simple one the vast majority of traders I have come into contact with don't understand - but if they did, the tip would increase their profits dramatically.
The tip is based on the 80 - 20 rule which is used in a wide variety of areas of life for example, in business it says 80% of your profits will normally come from just 20% of your clients. In Forex terms it means - 80% of your overall profits will come from just 20% of your trades.
The reality is that most Forex traders take far too many trades, if they cut back on their trading frequency and only hit high odds trades their profits will increase dramatically.
They hold the following beliefs which are simply not true
- They can make money by scalping or day trading
These short term trades are low odds trades in fact - the odds are you will lose, as you are trading the market noise.
- They need to be in the market just in case they miss a move
If course this is rubbish, you can spot a move and enter when the time is right!
- The harder the work and the more trades they make the more money they will make
The work ethic doesn't apply in Forex; many people think with effort they can force money from the market and they lose.
Be Smart and Aim for 100% Annual Profits
I know traders that trade less than once a month yet still turn in triple digit annual profits! There not interested in working hard or trading all the time, their interested in making money and that means hitting the high odds trades and milking them for all their worth. These traders make a lot of money, not by working hard but working smart.
Less is More Hit the Big Trends
The high odds trades don't come around every day and you need to wait for them but when they do, they will give you high odds set ups, greater chances of success with less work and that is something all Forex traders want!
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Since 12 May 2009