What I am going to reveal is 4 trading concepts that differentiate between very wealthy traders and just plain successful traders. To give you a clue, Warren Buffet invested strictly using these 4 concepts.
They are not widely discussed as these simple concepts are overlooked. Learn to trade forex with these powerful concepts because they follow the nature of the forex market. Remember that simple things often work best and you only get rewarded for being right.
No matter how hard you work, it is only when everything comes in place and you put your trade on then you get your profits.
1. You do not need to trade regularly as big rewarding trades do not happen often
When traders learn to trade forex, they tend to force themselves to trade regularly. They think that trading frequently will make them more money.To make good money from forex market while low risk, we need it to move big in one direction.
Unfortunately, it does not happen often. For the forex market to trend heavily in one direction, we need the majority of the traders to take the same action. They have to buy more or sell more of their currencies.
So simply by understanding you will not lose out by trading less will give you a big advantage over the other traders.You will keep most of your capital during the sideway trending and make the most money when the real trend comes.
2. Stop trading for the sake of trading. Only trade with the best odds
Every day, you can find different setups in the market. However not all setups have the same winning odds. You need to find one or two setups that give you the best winning odds. You will see these setups from your history trades.
Learn to trade the setups that have high winning odds. I guarantee your trading results will be far superior compared to trading all kinds of setups. The two tips to make more from your forex trading system are:
3. Cut back the amount of trading you do
Are you trading more regularly than you should? Warren Buffet has this quote saying that the “best thing to do is to do nothing” when comes to investment. Selective trading is very powerful and used by most of the successful traders.
Traders do not perform optimally when they keep making decisions. Plus the facts that market only show high winning setups occasionally. So if you are currently trading 3 times a day, you might want to cut back to 2 or even 1 time. Learn to trade using selective trading and observe how much more profits you can earn through less losses.
4. Increase your position sizing for high odds trade and no diversification
You may think it is safer to trade regularly with smaller stakes. Regular trading is very stressful and you are constantly losing money over the commission.
Now try this. Combine 3-5 trade orders on your highest winning setup instead of spreading them out. Learn to trade forex with a larger position on the highest winning setup.
You will be amazed how much more money you can earn.
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By Mike De Long