How to be more effective with less effort!

How to be more effective with less effort!

Its not just what they do, but how can it not affect your trading success.
Welcome to the 80/20 principle, where it is possible to get more from less.

Before you get in the way the 80/20 principle applies to trading, a little background.
"For a long time, Pareto Law (80/20 Principle) is lumbered with the economic landscape as erratic block n landscape empirical law which nobody can explain" - Josef Steindl

The 80/20 principle claims that a small number of causes, inputs or effort usually leads to a larger part of the results. Contrary to what most people believe, cause and effect are not equally balanced. They rarely are in the ratio of 50/50. Often, if not most of the time, a small part of an effort to keep most of the results. Every aspect of life is a mirror of the 80/20 principle. Take for example Forex Trading. The figures point that the number of successful traders is the ratio of 90/10. While many people will argue about which is more important to note that the Pareto principle in force here.

Successful traders know that you need to know when to stand on the gas and when to ease off. All trades are not equal. Sometimes you need to go for those that are long and hang out there to make every pip count and sometimes you need to trade small. The only way to make money in the markets is to trade those long trends, where most of the money is made. Its often said "trend traders best friend." Legendary traders like Richard Dennis, Ed Seykota, and other examples that integrate the 80/20 principle in their trading.

The best way to make the most use of this principle in trading is to learn your trading schemes. You will notice that the winning percentage of trades to losing trades, are not equal and in order to succeed, it is high enough net profit to offset his losses.Lot traders lose money in the markets and can not understand why and all the rules, they are still losing money. They did not bother to look at their craft and understand the reasons for their losses.Maybe is it a model or breakout trade, which is giving you the most benefits or reversal trades that causes most losses.
You have to look under the veil to understand your trading habits and graduate to a better trading.