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Wednesday, August 04, 2021

The 80/20 Rule (Work Less Make More)

The 80/20 Rule (Work Less Make More)

EUR/USD OANDA:EURUSD

The 80/20 Rule: 80% of your Forex results (profit) will come from 20% of your setups (work). This is why in Forex you should only trade high quality setups with the right pair, at the right price, in the right session and at the right time. The 80/20 Rules applies to work, life, business and trading.

Question is: In Forex scalping or day trading> What will make the largest difference for your increasing profits? Then do more of that in trading. The 80/20 rule can change your life! Focus on what give you the most results (80%) while not focusing on useless activities (20%).

Here are some examples of The 80/20 Rule: (You can make your own 80/20 rules- which will help you in life, work, play and trading)
80% of the effects come from 20% of the causes.
80% of results come from 20% of effort.
80% of Forex profits come from only 20% of all trade setups.
80% of profits come from trading 20% of all setups in London NY overlapping session.
Financial markets moves 80% are technical and 20% fundamental.

If you have a plan, have a routine, have a journal, have right physical frame of mind (emotional, focus, discipline, patience control), use right risk management & only trade high quality setups in Forex, this will give you best risk reward and win rate% and give you more profit & time to enjoy life.

Focus on trading only your best setups. It is a way of thinking about your time as well, it applies quite well focusing on time management.
If you think about it, if you can work out what the most important 20% is for what you are trying to achieve you will probably get done 80% quite rapidly.

Applying a simple tip to make bigger profits by applying the Paretto Principle or 80/20 Rule to increase profit potential and reduce risk. The rule is simple, works and helps you, focus on the best trade set ups for long term Forex trading success.



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