Forex Trading Strategy
19/10/2011 10:58
There is no single best Forex trading strategy but if you are looking for one which can make you a lot of money, is simple to understand and takes just 30 minutes a day, then this one is for you.
Forex traders try and make trading complicated when its essentially simple - simple systems work best, because they are more robust and furthermore, contrary to popular belief, you don't need to predict to win at Forex trading. In fact, if you do try and predict you will lose money, as predicting is simply hoping or guessing and that won't help you win. If you are interested, check out Forex Trading Strategy.
So before we look at our simple system, lets look at the logic it's based on.
Forex markets trend up and down for long periods of time and if you look at how these trends start and continue, you will notice prices in a bullish trend, prices break to new chart highs the trend then continues breaking to new highs, as the trend continues its upward journey.
So if we buy breakouts to new chart highs, were not predicting or guessing, were simply trading the reality of price change as it occurs and putting the odds on our side - simple?
Yes but most traders won't do this because there obsessed, with predicting the exact bottom and when a breakout occurs they wait in vain for a pullback which never comes on the best breakouts.
If you get in on a breakout and appreciate, you may have missed the exact turn but compensate yourself with the knowledge, that the odds are on your side and if its a good break, there is a lot more profit to come you can make huge gains.
When looking for breakouts to trade, look for levels that are considered important by traders and this will normally involve a level which has been tested six times or more. When it breaks, the odds of a new trend starting or continuing are high. In breakout trading, the more tests you have and the wider they are spaced apart in terms of time, the more profitable the breakout tends to be.
This is a simple, timeless way of making money, if you concentrate on the best breakouts and are patient, you can make huge profits in around 30 minutes a day and earn yourself an great second income. For more info, visit Forex Trading Strategy.