Forex encyclopedia

Every day, many people around the world try their hand in forex trading. Many of them failed and never look back, some persist for years but never achieve anything, a few soar in almost no time at all. With all those information, including entry-exit strategy, money management, and psychological control available freely in the Internet, supposedly everything is not as different. So how a newbie can advanced to a higher level as a trader? Many mistakenly think that the difference between a successful trader and a struggling one is the entry-exit strategy, personality or even experience. But all those things are simply skin-deep. They don't explain why some traders work for years without achieving significant results except maybe the amount of their losses. True, to succeed, a trader needs to have the right entry-exit strategy, apply money management and some experience. But, if there is something which makes a difference between years of struggling or a relatively short time to achieve, it is this.... Well, actually there are three:
According to official sources, the Pareto Principle was named after the economist and sociologist Vilfredo Pareto, who was born in Paris in 1848, but was Italian by nationality. From 1906, he began to notice certain economic patterns. For example, he noted that 80% of the land in Italy belonged to 20% of the population. Then, he formulated the principle, noting that 20% of the pods in his garden contained 80% of the peas. These and other regularities led to the fact that Vilfredo Pareto developed the “80/20 Rule”, which in general form looked as follows: 80% of the effects come from 20% of the causes.
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Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
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