Forex Trading Strategies That Work - This One is Simple to Understand and Makes Huge Gains!
If you are looking for Forex trading strategies that work
, then the one enclosed is one that not only works and makes huge gains, its also easy to understand and can be applied in just 30 minutes a day; let's take a look at it in more detail.
This strategy is all about getting the odds on your side and is based upon how every major trend starts and continues which is by breaking out to new chart highs. Look at any chart and you will see this is true and if you trade breakouts to new highs you will make a lot of money. We will look at how to do this a bit later in this article but first, let's take a look at why most currency traders pass this strategy by, even though its obvious it works.
Most trader want to buy lows and sell highs and predict where prices may go in advance but in breakout trading, you don't predict you wait for the trend to start before getting involved and miss the exact low. Forex markets however cannot be predicted and the trader who tries to buy the exact low, finds his predictions are as accurate as his horoscope!
These traders can't buy breakouts because they want to be in at a low, so they wait for the price to come back and of course it doesn't, it carries on and this trader misses the trade and a profit. The smart trader, knows he has missed the start of the move but knows that he has the odds in his favour when he enters the trade on the breakout and focuses on the profit ahead of him.
If want to become a breakout trader, look for levels that have provided firm resistance in the past and wait for them to break. The more tests that have happened before the break the better the odds are of the breakout continuing when the breakout occurs. Another point to keep in mind is - the wider the time frame between the tests the more valid the level is so when looking to take a trading signal, look for a few tests, I like at least four and for two of the tests, to have been at least a few weeks apart in terms of time.
You can simply use resistance lines when trading breakouts or you can add a few momentum indicators in to help you time your trades better and increase the odds even more. You can learn this method quickly, you will also have the confidence of knowing it will always work and finally, you will only spend 30 minutes or so a day trading, making it very time efficient.
If you are looking for Forex trading Strategies that Work, consider breakout trading and if you use it you will soon be on the road to currency trading success.
Forex Trading Strategies That Work - This One is Simple to Understand and Makes Huge Gains!
By: Kelly Price
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Forex Trading Strategies That Work - This One is Simple to Understand and Makes Huge Gains!