Forex Trading Strategies - A Simple Timeless Strategy For Bigger Profits
If you are looking at the best Forex trading strategies, then you should consider the one enclosed because it works. In addition, it's simple to understand and takes very little time to apply, so let's look at it.
A fact of Forex trading is that any currency will trade either up or down for long periods of time and the big bull trends, start from breakouts to new market highs and furthermore they continue from them. If you trade these breakouts, you can make a lot of money but which are the best?
Generally, the more times a level has been tested the better and we would look for at least four tests in two separate time frames. The more times a level has been tested and the further apart in terms of time the tests are, the better the breakout will probably be when it comes.
The above sounds simple and it is but most traders simply cannot do it.
The reason is they sit back when the break occurs and think they have missed the start of the move and wait for the market to come back. The problem for them of course is the market doesn't come back and they miss an opportunity and miss entry into a big trend.
These traders are fixated with buying low and selling high an predicting but that's impossible and just hoping or guessing. The trader who simply gets in the market on the break, doesn't care he hasn't caught the exact bottom, as the odds favour a continuation of the breakout and that means a lot more profit ahead.
Another great point to keep in mind about breakout trading is its low risk. Your stop can be very close, just below the breakout of resistance and on the good breakouts the upside is massive, so you have the perfect balance of risk to reward.
When trading breakouts be very selective in the ones you chose, you only want to trade levels that are considered important by the majority of traders, as these will offer the best risk to reward.
You can spend just 30 minutes a day with this method, trade two or three times a month and still make triple digit gains. You can add a few confirming indicators in if you wish or just use trend lines but either way you can enjoy currency trading success.
If you are looking for the best Forex trading strategy, look at breakout trading.
Article Source: http://www.Free-Articles-Zone.com
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