The trading strategy we are going to look at in this article is all about Forex trading made simple – the strategy is easy to understand, simple to use and can make triple digit gains in around 30 minutes a day. Despite its simplicity, the pro traders use it, novices though ignore this great trading method but don’t let that bother you, most novice traders lose money.
The biggest mistake you can make in Forex trading is to think you can predict Forex prices in advance. Prediction is simply translated in Forex trading as, hoping nor guessing and if you try it, get ready to lose your money. The old saying goes – ” A trend in motion is more likely to continue than reverse” and its true!
The way to make money in Forex is to trade the reality of price change and trade trends as they get in motion – You don’t predict anything, you simply let the market tell you when to trade.
So how does every big bullish FX trend start and continue?
Most traders have no idea but they all start the same way by breaking resistance and making a new chart high and furthermore, as the trend progresses, breakouts continue. So if you want to get in on these big trends, simply buy breakouts to new chart highs on a Forex chart.
You do miss the exact turn as this occurs and that’s why novice traders don’t use this method but at the end of the day, no one can predict the trend change in advance so why bother? Simply, focus on what could be ahead of you in terms of profit, rather than focus on the little bit of the move you have missed.
When you use a breakout trading strategy, be selective in the breakouts you choose to trade. In general terms the more tests of a level before the break the better the odds and the wider they are spaced apart on an FX chart, in terms of time the better the odds. I like to trade at least 6 tests of a level before the break and like at least two of these tests, to be a month apart or more in terms of time.
When the break occurs – execute your trading signal and place your stop below the resistance level that has broken which will not act as support. You can use simple charts and watch and trade breaks but a good idea is to add a few confirming momentum oscillators to confirm price change is accelerating as the break occurs, because this increases the odds of success even more.
Many of the world’s top traders use breakout trading methodology and you should to, because it is easy to understand, easy to do and best of all, it can make you huge profits in around 30 minutes a day. Breakout trading is Forex trading made simple and anyone can do it so try it for yourself and see.