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Any person who has studied some form of power-law distribution owes some gratitude to Vilfredo Pareto, one of the influential economists from the early 1900s. Of the many contributions the Italian made to society, the Pareto principle is perhaps one of his most well-known.  Of all the names the law is known by, the 80-20 rule is probably the most popular and … [Read more...] about Using the 80–20 Rule in Forex to Your Advantage

A good investor knows all the tools crucial for profitable trades. However, one can only excel if one identifies the tools that work best. If you are looking for a tool that indicates when the market is about to turn a corner, you will like the head and shoulders pattern. The big question here is how to apply the indicator best to obtain its maximum potential. Before … [Read more...] about Simple Techniques for Trading Head and Shoulders Pattern

What are the benefits of the Commitment of Traders report in forex? In this piece of writing, you'll discover the significance of the CoT in providing traders an idea of the positions of the most prominent market players.  One of the biggest challenges with forex is that no actual order book exists providing information on the positioning of the various participants. … [Read more...] about This Is Why You Should Be Using the Commitment of Traders Report in Forex

As the saying goes, there is more than one way to skin a cat. Scalping is a popular trading approach in forex because of the quick realization of profits. Unlike more long-term strategies like swing and position trading with high levels of uncertainty, scalping presents a constant flow of opportunities. Despite the tremendous attraction of being a scalper, it's still a very … [Read more...] about 7 Things to Consider Before Scalping in Forex

A lot of the common literature on what to risk per trade often centers around a defined percentage, typically 1, 2,3, or even 5. Ultimately, this metric is the only thing within a trader's control and is the foundation of position sizing and money management overall. On the surface, this fixed percentage model seems logical. Yet, it misses one key component, and that is the … [Read more...] about Risk Percentage per Position vs. Risk per Unit of Time Model in Forex