subject: Simple Forex Trading Systems - An Easy To Understand System You Can Use For Triple Digit Gains! [print this page] Here we will look at simple Forex trading systems and give you one which you can use right now for big Forex profits. The logic is very easy to understand and apply and if you use the system enclosed, you will soon be making a great second income in 30 minutes a day or less.
So why are simple Forex trading systems better than complex ones?
Despite what many people will tell you, prices in currencies don't move to some higher force or to science and cannot be predicted. Complicated mathematical equations don't help and the reason is simple - Forex prices move to the odds and in an odds based market, simple systems are more robust, with fewer elements to break. If you clutter a system with to many indicators, it will simply break in the brutal world of currency trading.
Our simple currency trading system is based on the simple fact that all bullish price moves and trends, start by breaking to new market highs and look at a price chart and you will see this. If you buy these breakouts, you can make a lot of money but you have to be selective.
Selecting the Best Breakouts
You need a level which has been tested several times before the break and if the tests are widely spaced apart in terms of time this increases the chances of the break following through even more. Look for at least two of the tests to be a few months apart in terms of duration and look for at least 6 tests before the breakout occurs.
A System Based on the Reality of Price Change Not Prediction
The above system predicts nothing and just follows price action to get into trades. Novices don't buy breakouts because they want to be in right at the low but that's impossible and involves prediction and they want a pullback to the low before getting in!
They therefore wait in vain, because the price on the best breakouts continues and doesn't pullback. They really should be focused on how much money the break can make them and not the little bit of profit they have missed - but savvy traders know breakouts work and make great profits from them.
The Best Breakouts Feature this Key Point
If you see a breakout occur and the news is telling you it shouldn't, its probably going to be a good one and you should go with it, even if you see no reason behind it and the reason for this is explained by the Heisenberg principle in physics:
"if something is closely observed, the odds are it is going to be altered in the process" If a market breaks when know one expects it the odds are therefore far higher than when they do.
Keep in mind that most traders lose money, so if the vast majority of traders and news sources disagree with the break, then that's actually a good thing!
Additional Indicators
If you want to you can just trade breaks of resistance with no indicators but it's best to add a few momentum oscillators to indicate the strength of price on the break. You only need a couple and that will help you increase the odds on your trading signals.
by: K Price
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