Forex Trading Strategy – A Simple Strategy to Catch the Biggest Trends and Profits!
Sunday, September 27th, 2009Most traders don’t focus on the long term trends, they simply want to try and scalp small profits and end up losing and in addition, they don’t know how to enter their trading signals correctly and fail to make money. This strategy combines, making money from the big profitable trends and using a simple method, to time your trading signal with greater accuracy.
First before we look at the strategy, lets look at the logic its based on and it’s simple:
Big trends last a long time with many lasting weeks or months in duration and in some instances these trends last years. You will notice that in all big bullish trends, they start by breaking to new chart highs and the trend continues, by breaking new highs; so if you buy breakouts of important resistance levels, you can make a lot of money.
So why don’t the majority of traders do this?
The answer is simple – most traders are locked in the mindset of “buying low and selling high” they want to predict the turn and get in at the start of a trend but there is a problem with this mindset because it involves prediction and it’s really just hoping or guessing and leads to losses.
Forget all those people who tell you, that you can predict Forex prices in advance – you can’t.
If you really could and there was an order to currency movement, we would all know the price in advance and there would be no market.
If you trade a breakout to a new high, you are not predicting anything, you are trading the reality of price change and that means you will have the odds on your side and sure, you won’t win every trade but if you run your profits and cut your losses, you can make huge gains over time.
To hit a good breakout, look for a level which as been tested a few times before the break occurs and it’s the more times the better, in terms of getting the odds on your side and we look for six or more tests.
As soon as the break occurs – put your stop protection below the resistance level and wait, if its a good break, it will continue and move away from the breakout point and carry on, if it doesn’t your stop is tight so you have low risk.
This method may sound easy and it is, you just have to have the mindset to get into a trend in motion and forget about predicting; if you do this and you focus on long term trends, you can easily make triple digit profits in around 30 minutes a day or less.
Learn to trade breakouts and you will make more money in less time and that adds up to a great way to trade.
By: Kelly Price
