Here I am going to share some simple tricks on maximising your Forex profits. They work and if you incorporate them in your Forex trading strategy, they will work for you as well. Here they are…

Here are your simple tips for bigger profits and over 25 years they have made me a lot of money and there all simple to apply.

Learn the 80 – 20 Rule

This well known rule is used in business a lot and simply states that 80% of your profits are likely to come from just 20% of your clients and in Forex terms it means 80% of your profits are likely to come from just 20% of your trades.

Most novice traders trade too much and you need to keep in mind you don’t get paid for trading a lot – you get paid for being right! So cut back your trading and only trade the really high odds trades. In Forex trading terms, if you trade less you can actually make more.

Separate Core Capital and High Risk Capital

I personally like to have some fun trading and separate my trading capital into 2 portions. One portion is my core capital and another, is my high risk capital.

If for example, I get a windfall profit or I hit my year end target early, that goes into my high risk capital. This I use for hitting trades harder than normal and I don’t care if I lose it!

In fact, I have found sometimes when you can approach a trade with this attitude it makes a lot of money, as it’s money you don’t worry about it makes it easier to make profits with.

Why Trend Following is so Hard and the Solution

The most critical factor of trend following is not the timing of the trade or the indicator, but rather the determination to following the trend when it’s in motion.
Many traders have excellent forex methods and are right about the long term trends but cannot hold them due to the emotion of fear. So what do they fear?
They fear of losing the profit that they have in an open position is something all novice trader struggle with. The bigger the profit gets the greater the temptation is to snatch it before it gets away. As volatility eats into open equity, the temptation to take the profit becomes too much and the trader banks it. Of course then the trend carries on the way the trader thought piling up thousands of dollars and he’s not in – his fear and his emotions got the better of him. If you lack the discipline to hold trends and want to be proactive, use the 50 – 50 rule below.
Using the 50 – 50 Rule

This simple rule will make long term trend following easier and in most instances more profitable and its simplicity itself to apply, all you do is this:

You enter the trend and on the first surge you see to overbought or oversold in your favour you bank 50% of the trade.

You then wait for the next bounce against you to support or resistance and you go back to full 100% exposure. You then keep repeating the process.

If you do this correctly, not only will you feel proactive within the trend, open equity dips will be less severe and you will make more from the trend. Its simple and its very effective.

Breaks from Trading

Sometimes it’s good just to have a break from trading. Every 3 months or so just pack up and forget all about Forex. Anything can become boring and stressful and just like you have a holiday and from your day job to re-change your batteries, it’s nice to have a break from Forex trading. When you come back, you will be refreshed and see the markets with renewed enthusiasm.

Bigger Forex Profits

The simple tips above can increase your overall profitability and make your trading more time efficient and more profitable so try them and get more from your Forex trading for less effort.



Source by Kelly Price