Forex Trading Method - Use This Simple and Easy to Understand Method for Triple Digit Gains
The Forex method enclosed can be learned by anyone and is the one most new traders ignore but don't let that concern you too much the majority of traders lose. The strategy though is the one the professional traders use to make money and if you use it too, you could soon be making triple digit gains, in just 30 minutes a day, Let's take a look at it in more detail.
The novice trader normally thinks the way to make money is to "buy low and sell high" so he tries to predict trends in advance. The problem with this is that Forex markets cannot be predicted and most of the time, when this losing trader tries to pick a low he gets stopped out and eventually losses his money. Predicting is hoping or guessing and that won't get you far in life or on Forex trading, so what do the professional traders do?
The professional trader, has no interest in trying to be in at the exact low, his aim is to get in the market when the odds are in his favour and to do this, he looks for the set up which comes at the start of every major trend and that's a breakout through resistance to a new market high.
Look at a chart and you will see, the big trends start by breaking to new market highs and as the trend unfolds, they continue to do this. When a breakout to a new market high occurs, the trend change has been confirmed and if you buy a good breakout, you have the odds on your side and have a lot of profit ahead of you.
Sure, you have missed the exact low but that's impossible to predict anyway but when you get a good breakout, the trend can continue for weeks and make a lot of money.
Another great advantage of breakout trading is the risk to reward is excellent, your stop goes tight under the breakout point so you risk very little and on the best breakouts the profit potential can be ten or twenty times, the amount you are risking.
You have to be patient and wait for the best breakout patterns and the general rule of trading breakouts is - the more times the level has been tested the better and the wider the tests are spaced apart the better.
Look for levels that are seen as important by other traders and if the news and consensus, are not in favour of the breakout, the better the breakout is likely to be - why? Because the majority lose! So if you feel uncomfortable entering a breakout, chances are its going to be a good one.
Breakout trading is a timeless way to make profits, so forget the conventional wisdom of "buying low and selling high" which the losing majority do and focus on "buying high and selling higher" and you will be on the road to Forex trading success and a great second income in just 30 minutes a day.