Thursday, February 12, 2009

Using the 80/20 rule in CFD Trading

By cfdreport

Are you looking for simple CFD trading ideas that you can use in your CFD trading system to help you achieve higher profits from your CFD trading instantly. Well it is time that you looked at this, it will add excellent profits to your CFD trading.

The major problem is that a lot of CFD trader's face is that they don't know about the 80/20 rule and the power of this rule. This rule is a common rule that is used everyday in business and this rule is very applicable to CFD trading. So what is the 80/20 rule, it is simply that 80% of your sales will come from just 20% of your clients. So how does this work in CFD trading?

It means that you will find that 80% of your CFD trading profits will come from just 20% of your trades- so what this means is that you should be doing less trades and focusing on the high odds trades. So what this means is that less trades is often better. So many new traders make the mistake of over trading, which more than often means they will end up broke.

The 80-20 rule is one education lesson that all new traders should learn as fast as they possibly can as it will make them a lot of money. For more free education lessons feel free to visit the CFD FX REPORT they have many free education lessons available and they can help you find the best CFD Broker in the market too.

Many inexperience CFD traders think they need to trade all the time and the more they trade, the more they will make in terms of profits. Most CFD traders therefore try and scalp and day trade and just take low odds trades and lose.

The professional CFD trader focuses on the long term trends and big profits and many trade just once a month or less and turn in 100% annual gains.

Once you learn how to use CFD charts you will often see that big trends will often last a long time, and in some cases months, so if you get into these trades hold them and trail up your stop loss this will improve your profits.

If you want to make more money in less time, focus your CFD trading on long term trend following via breakouts and only take high odds trades. If you do this, you will make a lot more money, with less risk and in less time.

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1 comment:

  1. nice blog. I think Commodities trading allows you to gain exposure to the price movements of foodstuffs,
    resources and other globally traded goods.