Forex Trading Strategy - An Easy to Understand Method Which Makes Triple Digit Profits!
The Forex trading strategy we will look at here is simple to learn, easy to understand and will make huge gains. This method doesn't predict but trades the reality of price change and will catch every major big trend and profit - Let's take a look at it.
The Forex method is based on the way all the biggest and best trends start and continue and if you look at any currency chart you will see how they do start - by breaking through resistance and making a new high and as a trend continues, the currency will continue to do this.
Now the above is true and you can see it on any chart but most new traders fail to see it and don't base their strategies on this method. The pro traders do and the reason the novice trader doesn't, is simple - he believes that to make money in FX trading, you need to buy "low and sell high" so he looks to predict lows and highs in advance of the move. The problem is no one can predict, its another word for hoping and guessing and these traders soon lose.
The smart trader knows if he buys a breakout he misses the first part of the trend but why does that matter, when there is a huge profit to be made from the break?
The answer is it doesn't matter at all - your aim is to make money not try and do something which is impossible which is to buy the low and sell the high.
In terms of breakout trading, you need levels of resistance which have been tested and held several times before the break occurs and as a general rule, the more times the level has held before the break, the higher the odds are of a continuation of the break once it occurs. Try and trade six tests or more and keep in mind that the wider the tests are in terms of time, before the break occurs the higher the odds are of the break continuing. Look for two tests to have occurred at least a few weeks apart and if the gap is a few months this is even better!
Once the break occurs, your stop goes under the breakout point so if you are wrong, your loss will be small.
When you devise your breakout Forex trading strategy all you need to do is look for levels of resistance that are firm and wait for them to break. You can simply use charts on there own but it's best a few momentum oscillators in so you can see if price momentum is on your side when the break occurs, to increase your odds of success.
Breakout trading is simple, logical and works so learn this Forex trading strategy and get on the road to a triple digit income in just 30 minutes a day.