If you incorporate these two tips in your forex trading strategy then you can increase your forex profits dramatically and really supercharge your gains so here they are. The first one is:
1. Reduce Your Trading Frequency
Many traders think the more they trade the more their profit potential will be and they don’t like not being in the market in case they miss a big move. They end up trading to much and taking low odds trades and lose.
You don’t get rewarded for how often you trade – you get rewarded for being right with your trading signal and that’s it. I know trades who trade only a few times a year and make triple digit profits.
Their not interested in the buzz of trading, just taking trades they know will be big trends they can hold and make money with.
2. Do Not Diversify!
You will here a lot about not putting your eggs all in one basket as a way to reduce risk but there is a problem – it dilutes profit potential and most traders who start trading in forex simply don’t have big enough accounts to diversify.
When you see a high odds trade on your forex trading system then you need to focus on it and not be tempted take other marginal trades for the sake of it, this leads onto the next point.
3. Load the Trade Up
Another common wisdom is only risk 2% per trade – but for most forex traders this is too little and simply ensures they get stopped out by normal volatility.
Let’s say you are trading a small account of $3,000, risking 2%, that’s just $60!
You won’t make much risking that.
Risk and reward go hand in hand, so the more you risk the more you can make.
This doesn’t mean that you have to be rash but you need to take calculated risks at the right time and if you believe in a trade load it up. If you have a small account then you should be risking between 10 – 20% on these trades. The high odds trades don’t come around often, so you need to milk them for all there worth.
If you don’t like risk or try and restrict it to much, you will simply consign yourself to failure. You also need to have the courage to hit trades hard at the right time and be patient to wait for the high odds set ups to emerge. If you are a trader who wants to make more money from their trading then the above 3 tips will help you do so and enjoy currency trading success.
New! 2 x FREE Essential Trader PDF’s