Triple Forex Gains

By: Kelly Price

In forex trading the bulk of traders experience mediocre gains or lose - this applies to 95% of traders. However many traders are closer than they think to achieving bigger gains and the simple tips below can be incorporated in any forex trading strategy to increase returns - lets look at them.

1. Trade Less

One of the major problems that traders have is they equate trading a lot with getting more profits and they simply trade too much.

There is NO correlation between how often you trade and how much you are going to make - so the first point is cut your trading back to high odds trades only.

This means hitting the long term trends and turning points that yield the really big profits. The big trades only occur a few times each month in a currency so focus on these.

Forget day trading and scalping - the odds are not in your favour and you are guaranteed to lose so don't try - Hit the big trends and milk them for all you can.

2. Risk More

If your trading a small account don't diversify ( this is another word for diluting potential gains ) so risk more per trade.

If the odds are in your favour you need to increase your bet size.

You will hear a lot of traders saying you should risk 2% per trade! Well if you don't risk much you won't gain much - risk 10 - 20% per trade and more if you have a total conviction the odds are in your favour.

The enemy of successful forex trading is volatility and you need to have your stop far enough back that you are NOT clipped out by it and trail your stop slowly.

With reward goes risk and that's a fact.

Most traders are so afraid of risk they create it, by having stops to close and losing.

They think they have a low risk but they may as well have not bothered trading in the first place!

3. Use Momentum

The biggest error traders make is trying to predict - If you do you will lose.

Why?

If you predict you are hoping a level will hold and the market is not going to reward you for hope.

You need to make sure that whenever you trade price momentum is on your side.
This means missing a bit of the move - but as you can't predict it's the best you can do and it will still mean you can make a lot of money as:

You are trading the reality and always trading with the trend.

If you get 70% of the major trends you will make a lot of money.

Trading The Odds For Bigger Gains

If you like the action and the buzz of trading the above is not for you but if you are interested in increasing profits from your forex trading strategy then you will find the above is logical common sense.

You will be trading the best odds trades, risking amounts that can give you big rewards and timing your entries for maximum profit to lowest risk and this over time means big profits.

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