Here we will discuss 3 tips which if you include them in your FX Trading strategy can turn a trading account making marginal money into big forex profits. These tips don not conform to the consensus way of making money but most forex traders don't win!
1. Cut Back Trading Frequency
Most traders simply trade too much and you need to remember you don't get rewarded for the amount you trade - just how many trades you get right and the profit they produce. The high odds big trades only come around a few times a month so look for them and trade them.
For example, I know traders who trade less than 10 times a year yet make 100% + annual profits and you can to.
Forget short term trading like forex scalping or day trading and hit the high odds trades only - the big trends that last for weeks or months. Look at any forex chart and you will see them, so lock into them and trade them.
2. Hit High Odds Trades Hard
When you have a high odds trade - hit it hard in terms of money you are prepared to risk. You hear a lot about risking 2% per trade but for a retail trader this is ridiculous. If you invest $1,000, that's 20 bucks and your risk is so small, your going to get stopped out by random volatility. If you have a high odds trade risk up to 20%.
This is not being rash. If you have a high odds trade your confident in then you need to take a meaningful risk to make a worthwhile profit.
3. Don't Dilute the Above!
Only run high odds trades and forget about diversifying. Diversification is supposed to reduce risk and maybe it does - but one fact is clear, it will dilute your profit potential at the same time.
Why when you have a great high odds trade do you want to dilute and reduce its profit potential?
Many people diversify so much, they never make anything! So don't bother spreading trades around, hit the high odds trades, risk as much as you can afford and focus on it.
Many traders try so hard to reduce risk they actually create it and ensure they will never make any decent gains.
Trading is all about taking risk but this is not being rash, it's about taking calculated risks, at the right time and knowing when to bet, how to bet and what stake to risk.
Your not trading forex to make 10 or 20%, you can do that with less risk elsewhere!
Your out to make 50 - 100% or more and the above is really common sense and if you try it, you will reduce your risk, turbo charge your gains and enjoy currency trading success.
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