Have you known about the
80/20 trading rule? This is also called the Pareto Principle, in which in every event, you must divide that into 80% and 20%, 80% of the effects, and 20% is the cause. But it is not all of them, there are several things you need to know first.
This principle is still a relatively small minority of people who know. Sometimes the productivity of this principle is also not familiar with all traders' habits. But as a quick note, many traders have used this technique for decades.
This comparison ratio is not only 80:20, but you can adjust it yourself to be 75/25 or 90/10. The most important thing is that you have to demonstrate this technique correctly, don't lose the best forex broker bet because the application of this ratio is not correct.
The point is, this 80/20 is the rule by which you have to share your habits and the use of their effects. Trading apparently comes from one's own will. And if you are willing to bet the time frame, then also make sure the division is based on the basic essence of 80/20.
Types of 80/20 Trading Rule that Can be Applied for Forex Profit
For those who are still asking how this interpreted strategy is applied in trading, we have prepared a number of these types of trading so that you can try them immediately and accept the amount of profit. The types of 80/20 trading principles are:
1. 80% Simple, 20% Difficult
Let's start with the essential rules of trading, and the first 80/20 trading rule that we will discuss is quite simple. Usually, traders will spend a long time analyzing price movements, especially if they are too focused.
However, you don't always have to over-complicate things. You can start with a very simple process with an indicator technique that is not hard. You just trade with a simple strategy and switch to a slightly more difficult one for that 20% quota.
2. 80% Profits, 20% Trades
From the total profit that has been obtained, don't forget to save. We feel that this trading process is very risky, and when you make a profit, just save 80% of the total. The remaining 20% is used again for trading, so you have savings.
Most traders would like to keep their money rather than lose trades. If you gain the total 80% and just trade the 20%, even if you are losing, you still make money. We hope that everyone will try to adapt to this principle.
3. 80% Resting, 20% Trading
Don't be crazy about trading activities, but use your time wisely. According to the 80/20 trading rule, the wisest thing is to change the trading time to more rest, even up to 80% is recommended.
It's like this, you analyze the price movement and buy. After that, you are advised to take a break so that the trading results are much more satisfying. Especially after that break, the analysis you do will be much more useful.
4. 80% Daily Chart Trades, 20% Other time Frames
The 80/20 trading rule is also related to chart selection habits. If we do use the daily chart trades frame more often, but occasionally also try a different time frame, maybe use the 1 month or 1 hour one.
But it turns out, if we also set aside some time to focus on other time frames, this method makes all traders able to make consistent money. They don't feel pressured and can enjoy the whole trading agenda at any given time.
How much profit you can get, goes back to the selection of rules and
the chosen broker. In our opinion, the most satisfying is Didimax Forex Broker. For many traders, this interactive platform is much more profitable.
Maybe traders think that trading addiction is the same as enthusiasm so that it can bring profits. But in fact, several rules prohibit too high enthusiasm, it would be better if you use 80/20 trading rule which are guaranteed to be safe.