The 80/20 Rule In Forex Trading.

[moonchild]

I don't actually follow rules, I think they're retarded and you shouldn't also, but Pareto principle is actually not a rule, like those bunch of laws in Chemistry, this is a principle, like gravity, whether you believe in it or not it still prevails.

So, the 80/20 rule states that 80% traders traders lose out their money to 20% traders in the foreign exchange market.

To a point I tend to agree with this rule, because every year there's a new set of traders that grace the trading floor with myriad dreams of making money and living fastlane, but like air they fizzle are out and never to be seen again.

To be part of the 20% in Forex Trading is just about being patient and sitting on your hands till an opportunity present itself and then you attack it, that's why I tell people that trading is actually boring the moment you find an edge because all you have to do is to repeat the same things over and over again.

So, keep on learning and testing out new strategies till you find your edge and then stick to it and then learn the art of patient, which is waiting for opportunity to present itself.

 

[Finger Geek]

I will agree to this. No wonder most people do say that forex trading is risky, this is because they are among the 80% traders that losses there money.
Forex trading is not just about having interest in it today and starting tomorrow. It requires lot of practice.

Forex trade is not something that had formula that we can follow like mathematics. It is far beyond that, but it does not mean that we can not study it to create a strategy to recover even we made a loss.

When I first started forex trading, I started with demo account but I didn't spend much time with it. After 3 weeks I moved to a real account and I continued my trading with low amount of $10. Why I did this is not be able to study my emotion. When we use demo account, there is no way we will know if we are greedy or not. After many practice for more than 6 months, I was able to have my own startegy.

 

[King bell]

The 80/20 Rule is a simple concept that can be applied to many different areas of life, including Forex trading.

The basic idea behind the 80/20 Rule is that 80% of the results come from 20% of the effort. In other words, a small amount of effort can lead to a large amount of results.

So, how can the 80/20 Rule be applied to Forex trading?

Well, it can be used in a number of ways…

1) 80% of your profits will come from 20% of your trades

This is a very important point to remember. It’s not about how many trades you make, it’s about how profitable those trades are.

If you only make a small number of trades, but those trades are highly profitable, then you will still be successful.

Conversely, if you make a large number of trades but most of them are losing trades, then you will not be successful.

2) 80% of your trading success will come from 20% of your trading time

This is another important point to remember. You don’t need to spend hours and hours in front of your computer to be a successful.

 

[Ivo Zetticci]

Only fewer people around the globe are in profit because if you run a survey, you will see that maximum traders are habituated to committing mistakes but not deriving lessons from them. Eurotrader makes no delay while withdrawing trading fund. They also provide high security of funding.

 

[Shaf]

I learnt of the 80/20 rule about 3 years ago and tried to apply it. If you take a critical look at it, it's true, but how do you know which of the 20% is it out of all the things you do? And still other things that make up the 80% are still important for your success.

If one can understand how to utilize this properly though, traders can become the more efficient since they can try to predict and work better towards doing what actually matters.

It's sad that almost all traders run at losses but one should understand the risks you have when going into trading. Forex trading has been made to be a get rich quick way, while it's one of the riskiest ways of investment. It's just that it's highly rewarding if you get it right.

You will need the right skills applied at the right time and a bit of luck. If you can do things in such a way that your losses are far less fewer than your wins, that's when you become profitable.

 

[Jack Reacher]

A secure broker safeguards your trading capital. But finding a secure broker is like golden deers. I know Eurotrader as a secure trading broker which never delays in sending withdrawals and makes sure instant support in case any issue arises.

 

[Asahi]

Those who have small capital shouldn’t apply any EA. If you make portfolio of your investment, then you can use EA on a single account. FXOpulence allows traders to apply EAs on their trading platform.