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Guide To Currency Trading
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By samuel Leslie Berkovits
Most traders lose money and that's a fact, the savvy trader who makes money doesn't work hard, he just works smarter than a losing trader. Here we will give you 6 tips they use to maximize your profits.
1. Focus on the Long Term Trends
How many traders try and scalp and day trade? A huge amount but these traders are trading in random volatility in daily time frames and never win, they make a lot of effort but lose their money as the odds are against them.
The smart trader knows the big trends are the ones to focus on and trades the trends which last for many weeks or longer - he makes less effort but makes more money.
2. Learn the 80 - 20 Rule
Related to the above point is the 80 - 20 rule which is frequently used in sales. The rule states 80% of your profits, are likely to come from just 20% of your clients, so you need to focus on the 20% that really matter.
In Forex trading this simply means cut back your trading and focus on the trades which really matter and can give you the best odds of success and be patient.
3. Trade the Reality and Don't Predict
Most losing traders think they can predict market lows and highs but this is just guessing - they think they need to buy at the exact low or sell the exact high. The savvy trader, simply waits for price action to confirm a move before trading, while he may miss the exact turn, he confirms it first and this puts the odds on his side.
Never predict a move its doomed to failure - always trade the reality of price change.
4. Ignore the News
The news is not important, it's the investors reaction to it that is. News doesn't move prices investor perception of it does and that's why, markets collapse when the news is most bullish and rallY when it's at its most bearish.
So don't waste your time trying to predict how price will react news, just trade the reality of price change on a chart. News reflects the opinion of the majority and the majority always lose and if you pay to much attention to it, you will end up in the losing majority.
5. Don't Move Stops to Quickly
Most traders as soon as they get a profit, move their stop up to protect it but most put it to close and get taken out the market by normal volatility. They get taken out with a small profit and then watch the trade pile up thousands in profit and their not in!
If you want to make money at Forex trading, you need to run your profits and this means having the confidence to trail your stop outside random volatility.
6. Work Smart not Hard and make Bigger Forex Profits
If you want some great Forex tips to make more money in less time, incorporate the ones above in your Forex trading strategy and make bigger Forex profits today.
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